The 2013 balance sheet of the Captain Jet Inc. is attached.During 2014, the following events occurred. 1. On January 10, sell merchandise on account to Rayms $9,600 and Fischer $8,800. Terms 2/10, n/30. Freight $100 for each sale, F.O.B. shipping point. 2. On January 12, purchase merchandise on account from Zapfel $3,000 and Liotta $2,400. Terms 1/10, n/30. Freight $120 for each sale, F.O.B. destination. 3. Receive checks, $4,000 from Longhini and $2,000 from Hall, for sales on account after discount period has lapsed. 4. On January 15, send checks to Joosten for 9,000 less 2% cash discount, and to Maida for $11,000 less 1% cash discount. 5. On January 16, issue credit of $400 to Fieber for merchandise returned. 6. Summary daily cash sales total $15,500. 7. On January 21, pay off the balances to Zapfel and Liotta for the purchases on January 12. 8. On Feburary 9, receive payment in full from Rayms and Fischer. 9. On March 1, pay rent of $6,000 for a two-year term. 10. On April 1, sell merchandise on account to Dunlap $1,600, term 2/10, n/30. Freight $80, F.O.B. shipping point. 11. Pay $400 cash for office supplies. 12. Cash dividends totaling $800 are declared on June 13 and paid to stockholders on June 23. 13. Issue a note of $120,000 to bank (one year, annual interest rate 3%) for cash. 14. On July 5, purchase merchandise from Maida $33,000, terms 3/10, n/30. 15. On July 7, issue common stock 1000 shares, $10 par, in exchange of a land with a fair market value of $15,000. 16. On July 8, return $200 of merchandise to Maida and receive credit. 17. On August 1, sell merchandise to Lachey on account $80,000, term 1/10, n/30. Freight $1,500, F.O.B. shipping point. 18. Pay off the balance to Maida on August 4. 19. On August 10, receive half of the payment from Lachey. 20. On August 14, write off $1,300 bad debt for one account, Tooket. 21. Pay utitlities expense, $10,902. 22. On August 1, Lachey pays off its balance. 23. On September 1, pay cash $7,500 to Farmington for merchandise purchased last year. 24. On October 1, pay off notes payable $110,000 and associated accrued interest $6,000, of which $1,500 was shown on the balance sheet. 25. Over the year, sales and office employees earned $45,500 in salaries and wages, of which $1,500 was still payable at the end of year. 26. An unpaid utilities bill (December, $1,250) is due on January 10 next year. Additional Information at the end of the year: 1. Depreciation expense for the year was $14,250. 2. The company estimated that it has to pay federal income tax, $3,250. 3. After physically counting, the company decided that the ending inventories worth $40,146. 4. Based on its historical data, the company estimated that the bad debts were about 1% of net credit sales. 5. Unearned revenue is decreased by $10,000. 6. The company expenses all of the supplies purchased during the year. 7. No insurance policy is effective during the year. 8. The company used the gross method to record its purchases and sales on credit. 9. The company adopts the periodic inventory system. Instructions: 1. Prepare journal entries for each event. (10 pts) 2. Prepare adjusting entries. (3 pts) 3. Prepare adjusted trial balance. (3 pts)

The 2013 balance sheet of the Captain Jet Inc. is attached. During 2014, the following events occurred. 1. On January 10, sell merchandise on account to Rayms $9,600 and Fischer $8,800. Terms 2/10, n/30. Freight $100 for each sa 2. On January 12, purchase merchandise on account from Zapfel $3,000 and Liotta $2,400. Terms 1/10, n/30. Freight $120 for e 3. Receive checks, $4,000 from Longhini and $2,000 from Hall, for sales on account after discount period has lapsed. 4. On January 15, send checks to Joosten for 9,000 less 2% cash discount, and to Maida for $11,000 less 1% cash discount. 5. On January 16, issue credit of $400 to Fieber for merchandise returned. 6. Summary daily cash sales total $15,500. 7. On January 21, pay off the balances to Zapfel and Liotta for the purchases on January 12. 8. On Feburary 9, receive payment in full from Rayms and Fischer. 9. On March 1, pay rent of $6,000 for a two-year term. 10. On April 1, sell merchandise on account to Dunlap $1,600, term 2/10, n/30. Freight $80, F.O.B. shipping point. 11. Pay $400 cash for office supplies. 12. Cash dividends totaling $800 are declared on June 13 and paid to stockholders on June 23. 13. Issue a note of $120,000 to bank (one year, annual interest rate 3%) for cash. 14. On July 5, purchase merchandise from Maida $33,000, terms 3/10, n/30. 15. On July 7, issue common stock 1000 shares, $10 par, in exchange of a land with a fair market value of $15,000. 16. On July 8, return $200 of merchandise to Maida and receive credit. 17. On August 1, sell merchandise to Lachey on account $80,000, term 1/10, n/30. Freight $1,500, F.O.B. shipping point. 18. Pay off the balance to Maida on August 4. 19. On August 10, receive half of the payment from Lachey. 20. On August 14, write off $1,300 bad debt for one account, Tooket. 21. Pay utitlities expense, $10,902. 22. On August 1, Lachey pays off its balance. 23. On September 1, pay cash $7,500 to Farmington for merchandise purchased last year. 24. On October 1, pay off notes payable $110,000 and associated accrued interest $6,000, of which $1,500 was shown on the b 25. Over the year, sales and office employees earned $45,500 in salaries and wages, of which $1,500 was still payable at the en 26. An unpaid utilities bill (December, $1,250) is due on January 10 next year. Additional Information at the end of the year: 1. Depreciation expense for the year was $14,250. 2. The company estimated that it has to pay federal income tax, $3,250. 3. After physically counting, the company decided that the ending inventories worth $40,146. 4. Based on its historical data, the company estimated that the bad debts were about 1% of net credit sales. 5. Unearned revenue is decreased by $10,000. 6. The company expenses all of the supplies purchased during the year. 7. No insurance policy is effective during the year. 8. The company used the gross method to record its purchases and sales on credit. 9. The company adopts the periodic inventory system. Instructions: 1. Prepare journal entries for each event. (10 pts) 2. Prepare adjusting entries. (3 pts) 3. Prepare adjusted trial balance. (3 pts) n/30. Freight $100 for each sale, F.O.B. shipping point. 1/10, n/30. Freight $120 for each sale, F.O.B. destination. period has lapsed. 00 less 1% cash discount. . shipping point. value of $15,000. , F.O.B. shipping point. ch $1,500 was shown on the balance sheet. 500 was still payable at the end of year. CAPTAIN JET INC. BALANCE SHEET DECEMBER 31, 2013 Current Assets Cash Notes Receivable Accounts Receivable Less: Allowance for Doubtful Accounts Inventories Prepaid Insurance Prepaid Rent Total Current Assets Non-Current Assets Long-term Investments Investments in held-for-maturity securities Land held for future development Property, Plant, and Equipment Land Buildings Less: Accumulated Depreciation Intangible Assets Capitalized Development Costs Goodwill Other Identifiable Intangible Assets Total Non-Current Assets Total Assets Current Liabilities Notes Payable Accounts Payable Unearned Revenues Income Taxes Payable Property Taxes Payable Interest Payable Total Current Liabilities Non-Current Liabilities Provisions Related to Pensions Bonds Payable Total Non-Current Liabilities Total Liabilities Stockholders' Equity Common Stock Preferred Stock Paid-in-capital - Common Stock Paid-in-capital - Preferred Stock Retained Earnings Accumulated Other Comprehensive Income Less: Treasury Stock 41,200 16,000 41,800 (3,000) 40,000 540 500 137,040 51,000 45,500 85,000 675,000 (187,500) 8,000 76,000 48,000 801,000 938,040 110,000 33,500 12,000 8,440 6,600 1,500 172,040 84,000 300,000 384,000 556,040 100,000 100,000 27,500 10,000 152,250 5,000 (12,750) Total Stockholders' Equity Total Liabilities and Stockholders' Equity 382,000 938,040