Snazzy Sporting Goods Ltd. started operations on November 1, 2007 and have just completed its first month of business. Mr. Snazzy, the owner, has presented you with their trial balance, a receivable listing and a accounts payable listing for November 30, 2007. You have been asked to record December's transactions and prepare statements in proper form for Snazzy Sporting Goods Ltd for the two months ending December 31, 2007. Required: Prepare the Journal entries for December Prepare a trial balance for December 31,2007 2) Der December transactions December 1 i.) Received loan proceeds for $10,000 from First National Bank ii.) Purchased from Cyclone Sports, a new skate sharpening machine for $10,000 with Ck #112 iii) Paid outstanding items in accounts payable from November. - Luis Emporium $3,430 - Bishop Inc 1,470 - Fletcher Euipment 3,136 - Jackson & Lang 2,450 iv) Paid accrued wages from November by cash. December 15 i) Paid Electricity bill $275 for month of November. Ck # 126. i) Paid Telephone bill for month of November $185. Ck #127. ii) Purchases from CCM $7,245 on account. iv) Record Cash Sales for Dec 1-15 S9,650 v) Record Credit Sales as follows: Jr Wolves Hockey Club $2,500 Dynamo Dart League 750. vi) Recorded wages $2,100 for Dec 1-15. Paid by Cash. vii) Received payment on accounts receivable as follows: Warren & Son $1,080 Dean Company 340 Roy Davis 1,000 December 31 i.) Record cash sales for Dec 15-31 $11,250 ii.) Record Credit Sales as follows: Roy Davis S 2,150 Grossman Brothers 350 Sewell Brothers 410 Smith Inc 625 iii.) Record Wages $2,175 for Dec 16-31. All paid by cash. iv.) Record the following invoices that were received but not paid at December 31, 2007. NL Hydro $ 325 NL Telephone 175 Sheild Sports Shop 2,745 Sam Rogers- Rent 700 Accrue December Interest of $120. v.) Additional Info: Inventory Count at December 31, 2007 $18,640. Company depreciates equipment at 20%. Depreciate for two months. Allowance for doubtful accounts is estimated to be 6% of accounts receivable balance. Income taxes to be recorded at 40%. Snazzy Sporting Goods Ltd. Trial Balance November 30,2007 Debits Credits 49,400 5,600 0 22.000 0 3,600 14,460 1050 Cash and Bank 1100 Accounts Receivable 1101 Allowance for Doubtful Accounts 1200 Inventory 1300 Prepaid Expenses 1520 Equipment 1521 Accumulated depreciation-Equipment 2100 Accounts Payable 2120 Income Taxes Payable 2150 Accrued Interest Payable 2160 Accrued Wages Payable 2250 Long Term Notes Payable 2260 Bank Loan 2700 Director's Loan 3000 Common Shares 3100 Retained earnings 4000 Sales revenue 4010 Sales Returns and Allowances 5000 Purchases 6000 Salaries and Wages 6100 Rent 6110 Income Tax Expense 6120 Bad Debt Expense 6130 Interest Expense 6140 Depreciation Expense 6150 Miscellaneous Expenses 6160 Telephone 6170 Electricity 120 1,190 24,000 0 0 26,000 0 32,000 12,000 4,300 700 0 120 0 50 0 0 97.770 97,770