Please complete only the journal entries.

The Best Business Solutions Incorporated had the following balance sheet as of December 31, 2022. The transactions for the first three months of 2023 are also presented along with other information about specific accounts.

Best Business Solutions Incorporated

Balance Sheet

December 31, 2022

ASSETS			LIABILITIES
Cash	$139,500		Accounts Payable	$ 40,000
Marketable Securities	20,000		Wages Payable	10,800
Accounts Receivable	103,000		Taxes Payable	7,200
All. Uncoll. Accounts	-4,000		Short-Term Note Payable	80,000
Inventory	134,000		Interest Payable	10,000
Supplies	5,000		Unearned Revenue	30,000
Prepaid Insurance	9,000		Unearned Consulting Rev.	20,000
Total Current Assets	$406,500		Total Current Liabilities	$ 198,000
Land	$111,500		Long-Term Notes Payable	$ 50,000
Equipment	217,000		Bonds Payable	100,000
Accum. Depreciation-Eq	-97,000		Mortgage Payable	350,000
Building	590,000		Total Long-Term Liabilities	$500,000
Accum. Depreciation-Bl.	-110,000		Total Liabilities	698,000
Intangible Assets	60,000		STOCKHOLDER EQUITY
Total Long-Term Assets	$771,500		Common Stock	$200,000
			Paid in Capital-CS	50,000
			Retained Earnings	230,000
			Total Stockholders Equity	$480,000
Total Assets	1,178,000		Total Liabilities & Equity	1,178,000

Additional Information

Accounts Receivable

The following table indicates the historical breakout of accounts receivable

Days	Current	30 to 60	60 to 90	Over 90
Percent of Balance	50%	30%	15%	5%
Percent Collectible	95%	90%	80%	60%

The company uses the gross method of recording all sales on accounts.

Marketable Securities

The interest rate earned on marketable securities is 8.0%.

Inventory

In 202x, the company had used the gross method to record inventory purchases on account.

Prepaid Insurance

A three-year insurance policy in the amount of $10,800 was purchased on July 1, 2022.

Equipment

Equipment is depreciated at an average amount of $4,000 per month.

Building

The current building was purchased on January 1, ten years ago and has an expected 40-year life at which time its salvage value will be $40,000.

Intangible Assets

Intangible assets were initially valued at $60,000 and are being depreciated over 30 years at $2,000 per year.

Short-Term Notes Payable

The one-year short-term note payable is due on March 1, 2023. The interest rate is 15.0% which is payable at maturity.

Long-Term Notes Payable

The long-term notes payable are due in ten years. The interest rate on the notes is 6.0%.

Bonds Payable

The bonds payable mature in twenty years. The interest rate on the bonds is 10.0%.

Mortgage Payable

The following amortization schedule can be used for the January, 2023 mortgage payment on the 8.0%, 30- year mortgage.

Month	Payment	Interest	Principal	Balance
January	$3,000	$2,563	$437	$350,000 $349,563
February	$3,000	$2,553	$447	$349,116
March	$3,000	$2,543	$457	$348,659

Capital Stock

The capital stock is common stock at $10 par value with 50,000 shares authorized, and 20,000 shares issued and outstanding.

Journal Entries

1. Jan 1 Andrew invested $25,000 cash into the business by purchasing 2,000 shares of common stock at $10.00 par value.

2. Jan 2 The Company borrowed $50,000 on a short-term 90 day, 15.0% note payable.

3. Jan 3 The Company paid $42,000 in advance for the 12 month rental of a warehouse.

4. Jan 5 The Companys Board of Directors declared a dividend of $.75 cents per share payable on February 10, 2023 to all shareholders of record on January 20, 2023.

5. Jan 6 The amount in wages payable and taxes payable was paid in full.

6. Jan 8 The Company paid a total of $25,000 on accounts payable less the 2% in purchase discounts for early payment.

7. Jan 15 Cash sales for two weeks equaled $42,000. The cost of inventory sold equaled $18,000. Please use Sales Revenue.

8. Jan 18 Consulting services revenue during the first two weeks was $12,000 cash. Please use Consulting Service Revenue.

9. Jan 20 Supplies in the amount of $8,000 were purchased for cash.

(10) Jan 21 A customer who owed $40,000 on an account receivable, agreed to sign a 60-day note receivable with an interest rate of 15.0%. The interest earned on the note will be paid at the maturity date of the note receivable.

(11) Jan 29 The balance of $15,000 in accounts payable was paid after the discount period.

(12) Jan 30 The Company purchased $60,000 of inventory on account with the terms 2/10, net 30.

(13) Jan 30 The Company paid freight charges of $3,500 on the inventory purchase.

(14) Jan 31 Cash sales for two weeks equaled $43,500. The cost of inventory sold equaled $19,000.

(15) Jan 31 Sales on account for the month of January totaled $76,000 with the terms 2/10, net 30. The cost of inventory sold equaled $34,000.

(16) Jan 31 The unearned revenue represented the rental of special equipment that was used by another company on weekends and $10,000 of the revenue was earned in January.

(17) Jan 31 Collected $40,000 from an accounts receivable, and there was a sales discount for the payment of receivables within the ten day discount period.