Record Journal Entries by Date with Reference number & Explanation; abbreviate each Acct Type & round all to the nearest dollar.

1/7 Sell 1,239 discs ($65 each) on credit & pay 15% to Owl per 4/21/21 contract for revenue recorded 12/31/21.

2/28 Pay 2021 income tax, dividends, annual building loan interest & all remaining Accounts Payable.

3/30 Receive $720,000 on issue of 30,000 shares of common stock (MV $16; 10k to Jane Fox & 20k to Joe Owl), & 4,800 shares of 6% preferred stock (Par $50, MV $60, 10k authorized), convertible into 16,800 CS shares.

4/15 Complete 3rd job (prepaid 5/9/21), pay 15% on 4/21/21 contract, & collect all customer amounts due, except specific customer debt now expected to never be paid, representing 4% of total accounts receivable to date.

5/3 Buy 12,500 discs ($25 each + 8% sales tax), then sell 12,750 discs ($70 each), all with 80% cash, 20% credit.

6/30 Sell $450,000, 3-yr, 8% bonds (interest payable 1/1 & 7/1) when market rate is 6%, convertible to 25,000 CS shares (& Prepare a complete Amortization Schedule below the JE for this transaction).

7/1 Buy 15% of 5-year, 3%, $5m PA State bonds with 4% annual market rate, expecting to sell it in 2025 and 4k, 5% cum. PS shares at $51 each (par $50) from Owl Co., representing 40% of Owl's outstanding PS shares.

8/1 Grant options with 3-year vesting to Fox officers to buy 40,000 common shares for $18 each (MV: $18 now, $20 average for 2022) over 5-year exercise period, valued at $360,000, and pay Pi Ad Co. per 2021 contract.

9/27 Buy 25,000 common shares from MJM Co. at $20 each ($3 par with 100,000 common shares outstanding before Fox's purchase). At 12/31 year-end: MJM declares $75,000 of common dividends (to be paid 3/1) on 2022 Net Income of $350k when their common stock market price is $22.

10/15 Decide that furniture's UL & SV estimated in 2021 should be changed to 10 years & 10% respectively. Receive notice of customer $1m lawsuit & estimate 51% probability of a $50k settlement in 2023 or 2024.

11/25 Declare $70,000 dividends, paying PS & Jane now, but pay Joe on 1/15. Order $35,000 supplies (by 12/31 all 2021 bought supplies are used), FOB shipping & 2/10/net60 (shipped 12/29, received 1/9, & paid for on 1/15).

12/31 Pay broker $7,000 plus 1st of 6 annual $30,000 payments for 6-yr lease of trucks, estimating implicit rate at 12%. Physical count shows 6% of discs are missing (current replacement cost is $26). Based on an aging schedule, approximately 5% of all accounts receivable are estimated to be uncollectible. MV vs H.Cost: PA Bond 1% decrease, Owl PS 2% increase (no Divs declared), & Fox CS is $22, PS $52. Pay salaries based on 9% of pre-tax, pre-salary, cash-basis 2022 NI & estimate 30% US & PA income tax rate.

1/15/2023 Pay for supplies and remaining 2022 dividends, then declare and distribute a 3 for 1 common stock split. New evidence changes lawsuit probabilty to 75% & $75k to $100k settlement.

2/28/2022 Issue the 2022 Annual Report.