On January 1, 2012 Cayla, Jinelle, and Angela invested $500,000 cash, land worth $250,000 and a Warehouse Facility worth $350,000 to form JAC Watches Incorporated. JAC Watches Inc will function as a retailer in the business of buying and selling custom watches.

On January 1, 2012 JAC Watches Incorporated purchased 25,000 wrist watches on credit at an average wholesale price of $15 per watch. The company plans to re-sale the 25,000 watches purchased at retail prices

On March 1, 2012 JAC Watches Inc sold 5,000 wrist watches for cash, the average sale price per watch is $175. [Hint: this transaction will produce two journal entries].

On March 15, 2012 JAC Watches Incorporated purchases Office Equipment on account for $25,000.

On April 30, 2012 JAC Watches Inc received a bill for utilities used in the amount of $7,500.[Be careful with this one folks - think about what's going on in the transaction]

On May 31, 2012 JAC Watches Inc paid employees for a total of 4,750 hours worked; the average hourly rate of pay is $12.50 per hour.

7.) On June 30, 2012 JAC Watches purchased a 2 year insurance policy to start on June 30, 2012 for $24,000