Note: This list includes all activities$/$transactions $--$ do not add to the problem by

adding more transactions$/$information$.$ In other words, if it isn't here, then do not

worry about it$.$

$1.$ Sales for the year were $$70,000.$ All sales were on account $($i$.$e$.,$ credit sales$).$

$2.$ Collections of accounts receivable totaled $$72,000$ cash.

$3.$ New property and equipment were purchased for $$4,000$ cash.

$4.$ Equipment with a book value of $$2,000$ was sold for $$1,800$ in cash.

$5.$ Depreciation was $$2,000$ for the year.

$6.$ Purchases of inventory totaled $$35,000$ for the year. All purchases were on

account $($on credit$).$

$7.$ Payments to suppliers for purchases on account totaled $$32,000$ in cash.

$8.$ The ending inventory balance was $$5,000.$

$9.$ On December $31,2013,$ MSU repaid the $10\%$ note with accrued interest by

paying the bank $$11,000$ cash.

$10.$ $$20,000$ in cash was paid during the year for salaries payable to employees.

$($Hint: This amount includes payment of the $$1,000$ Salaries Payable balance from

$12/31/2012.)$

$11.$ $$500$ salaries expense was accrued for the last $4$ days of $2013.$

$12.$ Cash payments for other expenses totaled $$1,500.$

$13.$ On June $30,2013,$ MSU paid $$1,000$ in cash for a one$-$year insurance policy

covering the period June $30,2013$ to June $30,2014.$

$14.$ MSU operates in a tax$-$free jurisdiction. $($Are they lucky or what?$)$