Please Prepare the Financial Statement and

• Prepare the Closing entries

a. Dec.1 Jack Simmons, the owner contributed a $500,000 check from his personal account, which he deposited into an account opened in the name of the business, to start the business.

b. Dec.1 He rented space that had previously been used by a shoe store and wrote check no. 100 for $9,000 for the first six months rent.

c. Dec.2 He paid for installation and phone usage $300 (check no. 101)

d. Dec.2 He paid for advertising in the local paper $150 (check no. 102). The ads will all run in December.

e. Dec.2 He purchased $500 of office supplies (check no. 103)

f. Dec.3 He paid $300 for insurance for three months (December 2018, January and February 2019 using check no, 104).

g. Dec.4 He purchased 800 pairs of sneakers at $40 a pair on account from Nike (using purchase order no. 301). Payment terms were 2/10, net 30. Assume the shoe store uses the perpetual inventory system.

h. Dec.5 He purchased 500 pairs of dress shoes from Footwear Corp. on account for $20 a pair (using purchase order no. 302). Payment terms were 2/10, net 30

i. Dec.10 He made a sale on account of 20 pairs of sneakers at $100 a pair, to a local University Highland University (sales invoice number 2000) for their basketball team. Payment terms were 2/10 net 30.

j. Dec.11 He made a sale on account of 2 pairs of dress shoes at $50 a pair (sales invoice no. 2001) to a local charity, U.S. Veterans, that intended to raffle them off at one of their events.

k. Dec.12 He made a sale on account to The Jenson Group of 300 pairs of dress shoes at $50 a pair, to use as part of an employee uniform. Payment terms were 2/10 net 30.

l. Dec.14 He made a cash sale for 2 sneakers at $120 each and 1 pair of shoes for $60.

m. Dec.14 He paid the amount owed to Footwear Corp (check no 105)

n. Dec.17 Highland University returned 2 pairs of sneakers they had previously purchased on account.

o. Dec.18 He received a check from Highland University in full payment of their balance.

p. Dec.20 He made a cash sale to Charles Wilson of three pairs of sneakers at $120 each and 1 pair of dress shoes at $60.

q. Dec.20 He made a partial payment to Nike for $20,000 (check number 106)

r. Dec.23 Received a $400 utility bill which will be paid in January.

s. Dec.27 Received a check from The Jenson Group in the amount of $9,000.

t. Dec.28 He paid $2,000 of his balance to Nike (check number 107)

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