Review of the Accounting Cycle 153 996 P4-6. Journal Entries; Post to the General Ledger; Prepare a \"Mail Balance. Tides Tea Company began opera- tions on January 1, 2018. During the rst year of business, the company had the following transactions: January 18: The owners invested $200,000 (the par value of the stock) into the business and acquired 40,000 shares of common stock in return. February 1: Tides bought factory equipment in the amount of $45,000. The company took out a long-tenn note from the bank to nance the purchase. February 28: The company paid cash for rent to cover the 12-month period from March 1, 2018, through February 29, 2019, in the amount of $27,000. March 1: Tides purchased supplies in the amount of $28,000 on account. March 22: Tides recorded sales revenue in the amount of $120,000. Half of this amount was received in cash and half was paid on account. Ignore cost of goods sold. May 1: Tides received cash payments to pay off all the customer accounts. May 29: The company paid wages of $34,000 in cash. July 12: Tides recorded sales revenue in the amount of $180000, all of which was paid in cash. Ignore cost of goods sold. July 31: Tides paid $3,200 cash for interest on the note taken out on February 1. August 8: Tides paid off the balance owed to a supplier for the purchase made on March 1. September 1: Tides paid $6,000 cash for utilities. October 14: Tides paid wages of $24,000 in cash. November 10: Tides recorded sales revenue in the amount of $218,000. One payment of $100,000 was received in cash; the remainder of this balance was sold on account. Ignore cost of goods sold. December 31: Tides declared and paid a $25,000 dividend. The chart of accounts used by Tides Tea Company is as follows: chart of Accounts Chart of Accounts Group Account # Account Title 100: Assets 101 Cash 102 Accounts Receivable 103 Supplies 104 Prepaid Rent 110 Equipment 112 Accumulated Depreciation-Equipment 200: Liabilities 201 Accounts Payable 203 Wages Payable 210 Interest Payable 220 Notes Payable 300: Equity 301 Common Stock 310 Retained Earnings 320 Dividends 400: Revenues 401 Sales Revenue 500: Expenses 501 Wage Expense 502 Utilities Expense 503 Rent Expense 504 Administrative Expense 505 Insurance Expense 506 Supplies Expense 510 Depreciation Expense-Equipment 520 Interest Expense 600: Other 601 Income Summary