The following information relates to Matchbox, a venture started by Earl and Ryan Cantrell. Matchbox was incorporated on November 1, 2019. Matchbox is an innovative brick and mortar barber shop that offers spa services in addition to haircuts. The service that makes Matchbox unique is that they provide a subscription service for barber supplies. Customers that sign up for a membership and are sent a box every month with barber supplies as well as new and exciting merchandise. At the time of incorporation, two venture capitalists were eager to provide startup capital for this new business. Matchbox uses the accrual method of accounting and made the following transactions during the months of November and December. Transactions for November DATE TRANSACTION A Ashley Johnson purchased 21,000 shares of $2.50 par value stock in exchange for an investment of $175,000. Ben Stronger purchased 13,000 shares of $2.50 par value stock in exchange for an investment of $65,000. Matchbox purchased a large building for their first location at a cost of $25,000. In addition, they prepaid the monthly rent of $3,000 on a second location for the entire year for a total of $36,000. Purchased barber equipment from Salon Express for $27,400 on the basis of a $7,400 down payment and $2,000 per month for 10 months on credit with annual interest of 10%. The first payment is due December 1. Received subscription box pre-orders for the month of November all in cash of $75,000. This subscription entitles the customer to receive a box for the next 12 months starting with a box this month. Paid the premium on a one-year repair policy that covers parts and service for the V The following information relates to Matchbox, a venture started by Earl and Ryan Cantrell. Matchbox was incorporated on November 1, 2019. Matchbox is an innovative brick and mortar barber shop that offers spa services in addition to haircuts. The service that makes Matchbox unique is that they provide a subscription service for barber supplies. Customers that sign up for a membership and are sent a box every month with barber supplies as well as new and exciting merchandise. At the time of incorporation, two venture capitalists were eager to provide startup capital for this new business. Matchbox uses the accrual method of accounting and made the following transactions during the months of November and December. Transactions for November DATE TRANSACTION A Ashley Johnson purchased 21,000 shares of $2.50 par value stock in exchange for an investment of $175,000. Ben Stronger purchased 13,000 shares of $2.50 par value stock in exchange for an investment of $65,000. Matchbox purchased a large building for their first location at a cost of $25,000. In addition, they prepaid the monthly rent of $3,000 on a second location for the entire year for a total of $36,000. Purchased barber equipment from Salon Express for $27,400 on the basis of a $7,400 down payment and $2,000 per month for 10 months on credit with annual interest of 10%. The first payment is due December 1. Received subscription box pre-orders for the month of November all in cash of $75,000. This subscription entitles the customer to receive a box for the next 12 months starting with a box this month. Paid the premium on a one-year repair policy that covers parts and service for the V
