NOTE: This is a single question, SO PLEASE DO ALL JOURNAL ENTRIES AS SOON AS POSSIBLE.

AP 1. -Merchandising Firm, Masonry Supply -Start up Transactions (O2) First determine the correct journal entry for each transaction, then make entries using Special Journals. Masonry Supply uses the perpetual inventory method. Check Trial Balance to insure that the system remains in balance. Compare your results to the Solution. Spreadsheet skill builders: You can use the Page up and down keys to move quickly up and down the worksheet. Control plus Home keys bring you to the top. Don't like the view? Click outside any text box you may be in and select [View] then [Zoom] on the Menu Bar to zoom in or out. If you prefer, you can print this transaction worksheet to facilitate journal entries. May 207 transactions 5/1 Brett DeSanto established his new Masonry Supply business by: 1) depositing $75,000 in his business checking account, and; 2) investing equipment with a market value of $110,000 and an existing equipment loan of $38,000. 5/1 Masonry Supply pays May rent of $4,500 on warehouse and office space. Check \#1001. 5/2 Six month insurance premium of $11,000 is paid. Check \#1002 5/2 Inventory is purchased on account from Pyramid Materials for $38,500, terms 1/2030, invoice dated 5/1/07. 5/3. Supplies costing $1,500 are purchased for cash. Check \#1003 5/4 Returned inventory costing $3,500 to Pyramid Materials from the 5/2 purchase, wrong items received. 5/4 Purchased inventory costing $21,400 with $4,500 cash and the balance on account from Cascade Cement, terms 1/103, invoice dated 5/4/x7. Check \#1004. 5/5 Purchased inventory on account from Lakeview Stone for $12,550, terms 2/1030, invoice dated 5/4/x7. 5/8 Sale of masonry product to cash customer for $1,250 cash, merchandise costing $850. 5/14 Payment made to Pyramid Materials for balance due within discount period. Check \#1005. Hint: Go to the "Calculate" tab 5/16 Sold on account to Rahmati Builders masonry products for $8,800, cost of merchandise $5,930, credit terms 1/1030. 5/18 Sold on account to Arbor Homes masonry products for $6,900, cost of merchandise $5,225, credit terms 1/1030. 5/21 Issued credit memo to Rahmati Builders for $200 as an allowance for breakage of product delivered on 5/16. 5/27 Received payment in full from Rahmati Builders within discount period for product sold on 5/16. Hint: Go to the "Calculate" tab 5/28 Received payment in full from Arbor Homes within discount period for product sold on 5/18. 5/29 Owner withdraws $2,250 cash. Check\#1006