Record T-accounts for each transaction.

Davis Uniform Corporation operates a store that sells uniforms. The following are the transactions that occurred during the first quarter of operation- Jan. 1 to Mar. 31, 2021.

Jan. 1 Davis issues 20,000 shares of $1 par value common stock with an issuing price of $7.5

per share.

Jan. 2 Purchased furniture and fixtures from Acme Furniture for $10,800 cash.

Jan. 4 Purchased $1,200 of office supplies for cash.

Jan. 15 Paid $27,000 in advance for one years rent on the store building. The rent begins with

Jan 15. The company counts January for half a month.

Jan. 31 Paid salaries to employees for the first month, $2,700.

Feb. 1 Purchased $46,800 of uniforms inventory on account from the Birdwell Uniforms

Manufacturing Company.

Feb. 1 Borrowed $50,000 from a local bank and signed two notes. The first note of

$20,000 requires payment of principal in six months with annual interest rate at 4%.

The second note of $30,000 requires the payment of principal and all the interest in

two years with annual interest rate at 5%.

Feb. 6 Sold uniforms on account to Discovery School for $5,400. Cost of the uniforms sold

is $3,600.

Feb. 9 Paid Birdwell Uniforms Manufacturing Company $37,500 for the purchase on Feb. 1.

Feb. 20 Sold uniforms to a chemical factory for $59,400 cash. Cost of the uniforms sold is

$35,640.

Feb. 23 Purchased $7,500 of uniforms inventory on account from the Birdwell Uniforms

Manufacturing Company.

Feb. 28 Paid salaries to employees for the month of February, $3,150.

Mar. 1 Sold uniforms to the football team of Robert Lee High School, and accepted a $9,000,

three-month, note receivable with annual interest rate at 5%. Cost of the uniforms

sold is $7,200.

Mar. 1 Subleased a portion of the building to a jewelry store. Received $2,400 in advance

for three months rent beginning on Mar. 1.

Mar. 3 Some uniforms were returned by the chemical factory which made a purchase on

Feb. 20. The selling price and cost of the returned uniforms is $5,400 and 3,240,

respectively. Cash of $5,400 is refunded to the customer.

Mar. 23 Paid Birdwell Uniforms Manufacturing Company $10,800 for the purchases in Feb.

Mar. 25 Received $4,500 cash from Discovery School.

Mar. 30 The corporation announced and paid its shareholders cash dividends of $2,000.

Additional information:

1. At the end of March, $675 of supplies remained.
2. The furniture and fixtures have a useful life of six years and will be worthless at the end of their useful life.
3. Salaries for the month of March are $3,500, and will be paid in April.
4. The companys management estimated that of the $900 remaining on account from Discovery School, $150 would be uncollectible.
5. Income tax rate applied to the company is 21%.

Record T-accounts for each transaction.