1. On January 1, each company issued 26,000 shares of $0.10 par value common stock for $160,000. Both companies commenced operations on this date.
2. On January 2, each company borrowed $400,000 by issuing a 20-year, 7% note that specified interest plus $20,000 principal is due September 30 each year, beginning on September 30, 2014.
3. On January 3, each company purchased land and a building for $420,000 cash. Both managers allocated $70,000 to the land and $350,000 to the building.
4. On January 5, each company purchased equipment at a cost of $80,000. Both purchases were made in cash.
5. Each company sells one model of home heating unit, and made the following credit purchases during the year. You may record all the purchases in one transaction.

Date	No. of Units	Cost per Unit
January 10	40	$1,000
March 14	60	1,100
June 1	20	1,150
September 15	62	1,200
October 30	28	1,300

6. Each company sold 160 units for $398,500 during the year. All sales were on credit. You will only record the sales component of this transaction for now. Management has not yet determined how inventory and cost of goods sold will be valued. Therefore, management will use the periodic inventory system and record cost of goods sold at the end of the year.
7. $299,100 was collected during the year on the sales described in (f).
8. $213,360 was paid on the purchases made in (e).
9. On September 30, the first $20,000 principal payment plus nine months interest was made on the note payable described in (b).
10. A total of $34,200 was paid for a variety of expenses, such as advertising, supplies, insurance, and wages. These expenses are recorded in an account called other operating expenses.
11. Dividends of $0.90 per share were paid to common shareholders on December 1.
12. Management made an adjusting entry to accrue three months interest on the note payable in (b) and (i) above.

Record journal entries for these transactions, and prepare a trial balance after recording the transactions.