On December 1, 2018, Jack Stone forms a merchandising company, named J.Mart and set up as a proprietorship, which earns income mainly by buying and selling shoe. Stone owns and manages the business. Here are the transactions which had occurred during December of 2018. On 12/1/18, Jack Stone personally invests $1,000,000 cash in J-Mart and deposits the cash in a bank account opened under the name of J-Mart 1. On 12/1/18, J-Mart paid $48,000 for rent for 2-years (24-months, December 2018 through December 2020). J-Mart recorded the expenditure 12/1/18 2. Prepaid Rent on as 3. On 12/1/18, J-Mart paid $2,400 for insurance for 1-year (12-months, December 2018 through December 2019). J-Mart recorded the expenditure as Prepaid Insurance on 12/1/18. J-Mart borrowed $20,000 from First National Bank on December 1, 2018. The note bears interest at the annual rate of 6 % and is due to be repaid in half year with principal and interest. 5. J-Mart has three employees. It's employees earn $100 per day and is paid every two weeks on Friday. The first payday was 12/14/18, paid for the past 10 days work. The second payday Monday. From 12/28 until year-end is one working day. The employees will not be paid until Friday 1/11/19. Friday, 12/28/18. Year-end, 12/31/18, falls on a was C 6. On December 1, 2018, J-Mart purchased equipment for $68,000 cash. The equipment has an estimated useful life of five years (60 months) and J-Mart expects to sell the equipment at the end of its life for $8,000 cash. 7. On December 1, 2018, J-Mart purchased $3,000 of supplies for office with cash J-Mart recorded the expenditures in the asset account, "Supplies." On December 31, 2018, account of the supplies indicated $1,500 on hand, so $1,500 of supplies were used during December. On December 2, J-Mart purchased $52,000 of merchandise inventory on account from ABC Co., credit terms are 8. 2/10, n/30. J-Mart purchased merchandise on terms of FOB shipping point. The transportation charge is $1,000. 9. On December 5, J-Mart purchased $80,000 of merchandise inventory on account from GG Co., credit terms are 2/10, n/30. J-Mart purchased merchandise on terms of FOB destination. The transportation charge is $1,000. 10. On December 8, J-Mart (buyer) issues a $500 debit memorandum for an allowance from GG Co. for defective merchandise. 11. On December 12, J-Mart paid the amount due on the purchase of December 2. 12. On December 13, J-Mart agrees to render store services under a 30-day fixed fee contract for $1,800 (S60 per day). All services are to be completed by January 10, 2019, when the client will pay in full. 13. On December 14, J-Mart paid the amount due on the purchase of December 5. 14. On December 15, J-Mart sold $14,000 of merchandise on credit to KK Co. The merchandise has a cost basis to J-Mart of $8,500. 15. On December 18, J-Mart sold $50,000 of merchandise on credit to MM Co. The merchandise has a cost basis to J-Mart of $29,000. 16. On December 20, MM Co. returns part of the merchandise. The returned items sell for $2,000 and cost $1,100. 17. On December 21, the owner of J-Mart withdraws $2,000 cash for personal use. 18. On December 25, the KK Co. paid in full within the 10-day discount period. 19. On 12/26/18, J-Mart agrees to provide Storage services to a client for a fixed fee of $1,000 for 20 days. On this date, the client pays the entire storage fee in advance. 20. On December 27, the MM Co. paid in full within the 10-day discount period. 21. On December 27, J-Mart sold $8,000 of merchandise on credit to HH Co. The merchandise has a cost basis to J-Mart of $2,500. 22. On December 29, J-Mart sold $12,000 of merchandise credit to NN Co. The on merchandise has a cost basis to J-Mart of $7,000. 23. On December 29, J-Mart sold $8,000 of merchandise with cash to BB Co. The merchandise has a cost basis to J-Mart of $4,500. 24. On December 31, J-Mart paid for the utility's bills, and the amount was $2,135 25. Past experience suggests that 1% of receivables are uncollectible. On December 1, 2018, Jack Stone forms a merchandising company, named J.Mart and set up as a proprietorship, which earns income mainly by buying and selling shoe. Stone owns and manages the business. Here are the transactions which had occurred during December of 2018. On 12/1/18, Jack Stone personally invests $1,000,000 cash in J-Mart and deposits the cash in a bank account opened under the name of J-Mart 1. On 12/1/18, J-Mart paid $48,000 for rent for 2-years (24-months, December 2018 through December 2020). J-Mart recorded the expenditure 12/1/18 2. Prepaid Rent on as 3. On 12/1/18, J-Mart paid $2,400 for insurance for 1-year (12-months, December 2018 through December 2019). J-Mart recorded the expenditure as Prepaid Insurance on 12/1/18. J-Mart borrowed $20,000 from First National Bank on December 1, 2018. The note bears interest at the annual rate of 6 % and is due to be repaid in half year with principal and interest. 5. J-Mart has three employees. It's employees earn $100 per day and is paid every two weeks on Friday. The first payday was 12/14/18, paid for the past 10 days work. The second payday Monday. From 12/28 until year-end is one working day. The employees will not be paid until Friday 1/11/19. Friday, 12/28/18. Year-end, 12/31/18, falls on a was C 6. On December 1, 2018, J-Mart purchased equipment for $68,000 cash. The equipment has an estimated useful life of five years (60 months) and J-Mart expects to sell the equipment at the end of its life for $8,000 cash. 7. On December 1, 2018, J-Mart purchased $3,000 of supplies for office with cash J-Mart recorded the expenditures in the asset account, "Supplies." On December 31, 2018, account of the supplies indicated $1,500 on hand, so $1,500 of supplies were used during December. On December 2, J-Mart purchased $52,000 of merchandise inventory on account from ABC Co., credit terms are 8. 2/10, n/30. J-Mart purchased merchandise on terms of FOB shipping point. The transportation charge is $1,000. 9. On December 5, J-Mart purchased $80,000 of merchandise inventory on account from GG Co., credit terms are 2/10, n/30. J-Mart purchased merchandise on terms of FOB destination. The transportation charge is $1,000. 10. On December 8, J-Mart (buyer) issues a $500 debit memorandum for an allowance from GG Co. for defective merchandise. 11. On December 12, J-Mart paid the amount due on the purchase of December 2. 12. On December 13, J-Mart agrees to render store services under a 30-day fixed fee contract for $1,800 (S60 per day). All services are to be completed by January 10, 2019, when the client will pay in full. 13. On December 14, J-Mart paid the amount due on the purchase of December 5. 14. On December 15, J-Mart sold $14,000 of merchandise on credit to KK Co. The merchandise has a cost basis to J-Mart of $8,500. 15. On December 18, J-Mart sold $50,000 of merchandise on credit to MM Co. The merchandise has a cost basis to J-Mart of $29,000. 16. On December 20, MM Co. returns part of the merchandise. The returned items sell for $2,000 and cost $1,100. 17. On December 21, the owner of J-Mart withdraws $2,000 cash for personal use. 18. On December 25, the KK Co. paid in full within the 10-day discount period. 19. On 12/26/18, J-Mart agrees to provide Storage services to a client for a fixed fee of $1,000 for 20 days. On this date, the client pays the entire storage fee in advance. 20. On December 27, the MM Co. paid in full within the 10-day discount period. 21. On December 27, J-Mart sold $8,000 of merchandise on credit to HH Co. The merchandise has a cost basis to J-Mart of $2,500. 22. On December 29, J-Mart sold $12,000 of merchandise credit to NN Co. The on merchandise has a cost basis to J-Mart of $7,000. 23. On December 29, J-Mart sold $8,000 of merchandise with cash to BB Co. The merchandise has a cost basis to J-Mart of $4,500. 24. On December 31, J-Mart paid for the utility's bills, and the amount was $2,135 25. Past experience suggests that 1% of receivables are uncollectible