Please identify which account each action will affect and whether it will add or subtract (identify credit or debit). Thank you.
Other relevant information: 1. The A/R balance at January 1, 2005 consists of the following customer balances: Lao Che Industries. $15,000 (current) Temple of Doom Co...... ..$5,500 (90 days past due) Asp Co.... .$10,000 (current) Ark of the Covenant Inc........$11,500 (current) 2. The Company's common stock was issued with a $2.50 par value. 100,000 shares are authorized. 40,000 shares are issued and outstanding. na 3. The prepaid insurance amount relates to five years' worth of insurance that began on January 1, 2005 (how convenient!) 4. The Note Payable is a ten-year note that was taken out on December 31, 2001. The interest rate is 6.25% per annum. Interest payments are due January the previous year's interest (i.e. fiscal year 2005 interest is due January 5, 2006). 1/1 BEGINNING BALANCES 1/8 Indiana pays off $30,000 of accounts payable 1/12 Indiana buys 300 units of inventory at a cost of $82/unit on credit, terms net/60. 1/19 Indiana sells 320 units to Belloq, Inc. for $290 each on credit, terms 2/15, net 45. 1/21 Indiana pays the salaries payable balance from the beginning of the year. 1/31 Indiana collects the A/R owed by Lao Che from the beginning of the year in full (see instructions) 2/7 Indiana buys $3,000 of office supplies in cash. 2/15 Indiana pays off $30,000 of accounts payable. 2/18 Indiana collects the amount owed from Belloq, Inc from the 1/19 sale outside the discount period. 2/27 Indiana provides the services owed to a client. The client paid $50,000 in advance last year. 3/4 Indiana pays off the 1/12 purchase. 3/8 Indiana writes of the Temple of Doom A/R balance as uncollectible (see instructions) 3/14 Indiana collects the A/R owed by Ark of the Covenant Inc. and Asp Co. (see instructions) 3/24 Indiana buys 350 units of inventory at a cost of $85/unit on credit, terms net/60. 4/1 Indiana sells 280 units to Elsa Schneider, Ltd. For $300 each on credit, terms 2/15, net/45. 4/8 Indiana grants Elsa Schneider, Ltd. an allowance of $300 for damaged goods. 4/12 Indiana collects the A/R owed by Elsa Schneider, Ltd. within the discount period. 4/25 Indiana pays for online advertising in the amount of $4,000. 5/1 Indiana buys a short-term investment for $20,000. 5/8 Indiana pays off the 3/24 purchase. 5/15 Indiana buys 275 units of inventory at a cost of $87/unit on credit, terms net/60. 5/27 Indiana pays the income taxes payable amount from the beginning of the year balance. 6/3 Indiana pays the dividends payable amount from the beginning of the year balance. 6/27 Indiana buys 150 units of inventory at a cost of $90/unit on credit, terms net/60 7/3 Indiana sells 220 units to Brody Curators, Inc. for $305 each on credit, terms 2/15, net/45. 7/10 Indiana pays off the 5/15 purchase. 7/17 Indiana collects the A/R owed by Brody Curators, Inc. within the discount period. 7/27 Indiana pays $5,000 of the interest payable it owes. 8/9 Indiana pays for postage, shipping costs, and other miscellaneous items (total of $1,000). 8/24 Indiana sells 130 units to Katanga Shipping for $305 each for cash. 8/27 Indiana pays off the 6/27 purchase. 9/1 Indiana buys 300 units of inventory at a cost of $93/unit on credit, terms net/60. 9/12 Indiana buys $500 of office supplies on credit, terms net/60. 9/21 Indiana sells 250 units to Sallah Excavating, Inc. for $310 each on credit, terms 2/15, net/45. 10/4 Indiana sells 50 units to Ravenwood, LLC for $310 each for cash. 10/15 Indiana collects the A/R owed by Sallah Excavating, Inc. outside the discount period. 10/31 Indiana pays off the 9/1 purchase. 11/9 Indiana pays off the 9/12 purchase. 11/19 Indiana pays for online advertising in the amount of $8,000. 11/27 Indiana buys 175 units of inventory at a cost of $97/unit on credit, terms net/60. 12/4 Indiana sells 100 units to Jock Lindsay for $315 each on credit, terms 2/15, net/45. 12/12 Indiana pays Toht, Dietrich, and Gobler GmbH for miscellaneous expenses for $2,000. 12/16 Indiana collects the A/R owed by Jock Lindsay within the discount period. 12/29 Indiana declares a dividend of $10,000 to be paid next year. 12/31 Indiana provides services to Mola Ram Co. for $50,000 on credit, terms 2/15, net/45 12/31 Indiana collection $8,000 from Brody Curators, Inc. for services to be provided next year
