Section $2-$ Problem $(46$ Total Points$)$

Jim Barbi operates the Victor's House of Music $($VHOM$)),$ a business in which he purchases and sells all sorts of musical instruments from various branded manufacturers both domestically and internationally. He operates the business out of a small retail location in Asheville, $NC$ along with a significant consumer direct web site business also run out of the retail location. VHOM has the opening $2023$ Trial Balance listed below.

January $1,2023$ Trial Balance $-$ beginning of fiscal $2023$

$\backslash$table$[[,,$Debits,Credits$],[,$Cash,$130,000,],[2,$Accounts Receivable,$275,000,],[3,$Inventory,$600,000,],[4,$Equipment,$3,000,000,],[5,$Accumulated Depreciation $-$ Equipment,,$600,000],[6,$Land,$750,000,],[7,$Building,$-,],[8,$Accounts Payable,,$72,000],[9,$Salaries Payable,,$255,000],[10,$Income Tax Payable,,$-],[11,$Notes Payable $(1),,1,920,139],[12,$Bonds Payable,,$-],[13,$Premium on Bonds Payable,,$-],[14,$Common Stock,,$1,000,000],[15,$Treasury Stock,$-,],[16,$Retained Earnings,,$907,861],[17,$Revenue,,$-],[18,$Cost of Sales,$-,],[19,$Salaries Expense,$-,],[20,$Advertising Expense,$-,],[21,$Rent Expense,$-,],[22,$Utilities Expense,$-,],[23,$Income Tax Expense,$-,],[24,$Depreciation Expense $-$ Equipment,$-,],[25,$Interest Expense,$-,],[26,$Gain on Sale of Land,,$-],[27,$Dividends,$-,],[,$Totals,$4,755,000,4,755,000]]$

Footnotes:VHOM has the following transactions during fiscal $2023$ which runs from January $1$ to December

$31,2023$:

Jan $1($#$1)-$ Issued a $$1,000,000$ Bond at face rate of $5\%$ when market rate $=4\%.$ Bond is a $10-$year term

paid semi$-$annually on $\frac{6}{30}$ and $\frac{12}{31}.$ Need to calculate the Bond Value to perform this entry. $($Hint:

the opening trial balance includes a Premium on Bonds Payable account.$)$

Jan $5($#$2)-$ Purchased Equipment for $$2,000,000$ in cash

Jan $10($#$3)-$ Paid salaries payable from $2022$ of $$255,000$

June $30($#$4)-$ Sell $$1,250,000$ of product to customers on account for $1$st half of $2023.$ Cost of Sales $=$

$$500,000.$ Note: this is a $2-$part entry.

June $30($#$5)-$ Sell $$1,875,000$ of product to customers for cash for $1$st half of $2023.$ Cost of Sales $=$

$$800,000.$ Note, this is a $2-$part entry.

June $30($#$6)-$ Collect $$1,500,000$ in cash from customers that had been on account.

June $30($#$7)-$ Purchased $$1,600,000$ of inventory on account

June $30($#$8)-$ Paid $$900,000$ to vendors for prior accounts payable in cash

June $30($#$9)-$ Paid Salaries to employees of $$600,000$ in $1$ st half of $2023$ in cash.

June $30($#$10)-$ Payment of $1$ st semi$-$annual bond payment in cash, $$25,000.($Hint: will need to perform

a Bond amortization schedule to perform this journal entry.$)$

Dec $31($#$11)-$ Sell $$2,000,000$ of product to customers on account for $2$nd half of $2023.$ Cost of Sales $=$

$$800,000.$ Note, this is a $2-$part entry.

Dec $31($#$12)-$ Sell $3,200,000$ of product to customers for cash for $2$nd half of $2023.$ Cost of Sales $=$

$$1,400,000.$ Note, this is a $2-$part entry.

Dec $31($#$13)-$ Collect $$1,175,000$ in cash from customers that had been on account.

Dec $31($#$14)-$ Purchased $$1,400,000$ of inventory on account

Dec $31($#$15)-$ Paid $$600,000$ to vendors for prior accounts payable in cash

Dec $31($#$16)-$ Paid Salaries to employees for $$650,000$ in $2$nd half of $2023$ in cash.

Dec $31($#$17)-$ Paid Advertising Expense for year in cash, $$200,000$

Dec $31($#$18)-$ Paid annual rent on office facility in cash, $$186,000$

Dec $31($#$19)-$ Paid annual utilities expense in cash, $$165,000$

Dec $31($#$20)-$ Sold Land costing $$750,000$ for $$950,000$ in cash. $($Hint: the opening trial balance has a

Gain on Sale of Land account$)$Dec $31($#$21)-$ Made annual installment notes payable payment of $$731,672$ in cash. $3$rd installment of

$5-$year note. $($Hint: will need to perform a Loan amortization schedule to perform this journal en

$(1)$ The Notes Payable is a $5$ year note paid annually in installment payments on $12/31$ of each year. The annual rate on the Notes Payable is $7\%$ and the original Note was for $$3,000,000\mathrm{.}2$ annual installment payments have been made prior to $2023$ and the $3^{rd}$ payment will be made on $12/31/23.$ See Journal Entry #$21$ for description.