Prepare the journal entries during the quarter, adjusting journal entries and closing journal entries.

Daily Transactions 1 Issued 500 shares of common stock with a par value of $1 for $4 per share 2 Purchased new equipment for $3,000 by issuing an 18-month note payable with interest of 5.33% 3 Paid taxes of $1,221 from prior year 4 Purchased inventory for $1,835 on credit with terms of 2/10, n/30 5 Paid shipping for inventory purchased of $50 6 Determined an account receivable of $150 is uncollectible 7 Sold merchandise costing $21,300 to customers for $42,162 on credit with terms of 1/20, n/60 8 Returned $100 worth of inventory to supplier 9 Paid $250 to ship merchandise to customers 10 Issued 5 year bonds with a face value of $10,000 and an interest rate of 3% paid semiannually for $11,000 when market rate is 2% 11 Paid for inventory purchase (in time for discount) 12 Offered an allowance of $1,000 to customers to compensate for defective merchandise 13 Paid $900 for 4 months worth of insurance 14 Made a payment of $1,000 on long term debt 15 Received payments from customers for all merchandise sold during the quarter (in time for discount) 16 Repurchased 100 shares of common stock for $2.50 each 17 Customer converted an account receivable for $1,000 to a 90-day note receivable with interest of 3% 18 Made first bond interest payment 19 Sold 50 shares of Treasury stock for $3 each 20 Declared a $1,600 dividend to be paid in 1 month 21 Incurred income tax expense of $1,395 for the current year. This will be paid next year. 22 Paid dividend 23 Several customers paid off their accounts receivable balances from prior quarters for a total of $14,350 (they did not qualify for a discount) Adjusting Entries 24 The company estimates that 2% of their net sales will be uncollectible 25 3 months worth of interest has accrued on the note payable 26 As of December 31, 2018, the company has used half of the prepaid insurance 27 Depreciation expense is estimated at $3,200 Closing Entries 28 Close revenue accounts 29 Close expense accounts (including sales returns and sales discounts) 30 Close dividend account Journal Entries During the Quarter Adjusting Journal Entries Account Debit Amount Credit Amount Account Debit Amount Credit Amount Closing Journal Entries Account Debit Amount Credit Amount