Smith is starting a new fiscal year on July 1, 2019. From previous years, he has $12.000 in cash, owes $3000 obligations on leased assets, owes $4,000 in long term loans, and $9.000 in lease obligations. He owns land worth $60,000, farm vehicles worth $12,000, and feed inventory of $2,500 at the beginning of the year. Accumulated depreciation recorded so far equals $6,500. For each transaction that follows, make a journal entry in Smith's Journal and record it in each respective account in the ledger (using columnar paper). Use only the accounts listed in the Chart of Accounts below and only create those accounts that are affected by the transactions below. # Date Transaction 1 9-17-2019 Purchased feed worth $800. 2 9-30-2019 Sold an old tractor for $6,500. The original cost of the tractor was $12,000 and the accumulated depreciation at the time of sale was $4,500. 3 10-1-2019 Signed a lease contract for a farm tractor valued at $8,000. The lease term is 5 years and interest rate is 10%. Equal lease payments are made quarterly (including interest) with the first payment made at the beginning of the quarter on October 1, 2019. Assume no depreciation. 4 10-20-2019 Paid wages to farm hand that was hired earlier this fiscal year for 150 hours at $12 per hour. The farm must pay withholding tax to a government agency equaling 11% (2% for Social Security, 2% for Medicare, and 7% combined federal, state, and local income tax). Employer-side payroll taxes total about 5% of wages paid. 5 10-22-2019 Took a $12,000 loan from Farm Bureau Financial Services with a loan term of 6 years and interest rate of 10%. Equal payments are to be made on a quarterly basis. First payment made on the same day loan is received. 7 11-13-2019 Made final payment for a capital lease on a farm vehicle. The lease contract began 3 years ago and the original value of the vehicle on the lease contract was $9,000 with 10% interest and the vehicle has accumulated depreciation of $2,000 over the lease term. Equal payments made annually. 8 1-30-2020 Paid all withholding and employer-side payroll taxes for 2019 CHART OF ACCOUNTS 1010 Cash (checking account) 2050 Accounts Payable 1020 Feed Inventory 3010 Retained Equity 1050 Accounts Receivable 4010 Colt Revenue 1700 Farm Vehicles 4500 Gain/Loss on Sale of Non-Current Assets 1710 Accumulated Depreciation 5050 Feed Expense 1800 Land and Buildings 5130 Interest Expense 1910 Leased Assets 5200 Insurance Expense 2010 Notes Payable 6100 Wage Expense 2020 Taxes Payable 6200 Payroll Tax Expense 2600 Obligations on Leased Assets SMITH'S LEDGER