Packet $21$

During Year $2,$ the business experienced the following events.

Signed a note with the bank in exchange for $$800,000$ cash.

$2.$ Purchased Land, a Building & remodeled the building for the following amounts: Land $=$ $$281,250$; Building $+$ Remodel $=$$$438,750$

$3.$ Purchased and installed freezer $$4,289$

$4.$ In the prior year, CIC sold a parcel of land and received in return cash and a note receivable of $$10,000,$ due January $31,$ Year $2.$ The note carries interest at the rate of $8\%.$ $$733$ of interest was recorded as of Dec $31,$ year $1.$ Record the remaining interest due and receipt of interest from the note receivable.

$5.$ Recorded purchase of $6,000$ units of ice cream at $$4\mathrm{.}50$ each, on account.

$6.$ Recorded sale of $5,500$ units of ice cream at $$8\mathrm{.}00$ each, on account.

$7.$ Sold $6,000$ shares of the $$1$ par common stock for $$10$ per share.

$8.$ Sold $4,000$ shares of the $6$ percent preferred stock for $$150$ per share.

$9.$ Recorded purchase of $5,000$ units of ice cream at $$5\mathrm{.}00$ each, on account.

$10.$ Recorded sale of $4,750$ units of ice cream at $$8\mathrm{.}00$ each, on account.

$11.$ Recorded cash payment of the storage and delivery bill for July $-$ Dec, $$7,800.$

$12.$ Recorded cash payment to W$.$T$.$ for wages for July $-$ Dec of $$3,000.$

$13.$ Recorded receipt of $$45,000$ from customers on account.

$14.$ Recorded payment to the manufacturer of $$28,000$ of the amount owed.

$15.$ Completed a consulting job with My Assistant's new owners to help with year end financials in exchange for $$25,000$ & a consulting job with a company similar to My Assistant as a startup venture in exchange for $$25,000.$

$16.$ Declared a $$0\mathrm{.}50$ per share dividend on the common stock. There were $15,000$ shares in beginning common stock.

$17.$ Declared cash dividend on the outstanding shares of preferred stock for the year

$18.$ Paid dividends owed to stockholders of record on December $10.$

$19.$ Record depreciation on building $($see packet XX for details$)$

$20.$ Record depreciation on truck with a salvage value of $$8,750$ and a useful life of $5$ years

Record depreciation on freezer $($equipment $-$ see packet XX for details$)$

$(16,800)$

$733$