The Orange Engine Tires, owned by O. Black, sells tires. The shop has an April 30, 2020fiscal

year end, uses a perpetual inventory system. On April 1, 2020, the company's trial balance

reported the following:

Cash $21,385

Merchandise inventory 64,125

Supplies 3,750

Sales Returns and Allowances 42,800

Sales discounts 13,800

Land 180,000

Warehouse 70,800

Accumulated depreciationwarehouse 13,275

Accounts payable 65450

Interest Payable 6,070

Unearned revenue 4,680

Notes payable- Due Dec. 2022 42,000

Mortgage Payable- Due 2025 200,000

O. Black, capital $58,400

O. Black, drawings 52,800

Sales 474,080

Rent revenue 1,200

Cost of goods sold 301,010

Advertising expense 2,270

Salaries expense 68,200

Rent expense 18,150

Insurance expense 4,140

Interest expense 1,925

Accounts Receivable 20,000

Transaction for the Month

During the last month of the fiscal year, the company had the following transactions:

1. Owner withdrew $4,800 cash

2. Purchased supplies on account for $345.

3. Hired a new employee to be paid $1,600 per week.

4. Paid for the supplies purchased on account.

5. Received $525 cash in advance from customers for merchandise to be delivered

next month.

6. Paid salaries, $3,100 cash