This requirement includes ALL journal entries including original, adjusting, and closing.

Name Date Name Date Maxwell-Bucks Coffee Co. Economic Events for Maxwell-Bucks Coffee Co. (M-BCC), January 2016 DATE TRANSACTIONS Jan. 2 Investors purchase 3,000 shares of common stock for $43,000 Jan. 2 Purchase equipment for $18,000 Equipment has a five-year life and salvage value of $3,000 Jan. 2 Received a surprise check from your lawyer for $ 32,000. You won an unusual lawsuit based on a flukish incident that is not expected to occur ever again. Jan. 2 Purchase a used delivery truck for $28,000; paid $8,000 down, and will pay the remainder on a 4.75% note. Truck has a useful life of four years with no salvage value. Jan. 3 Purchased 6,000 pounds of coffee from grower on account Cost $9.5 per pound Terms: 50% in 15 days, remaining 50% in 30 Jan. 4 Customers paid $29,000 on December accounts. Jan. 4 Sold 1,000 pounds of coffee in cash sales at $18 per pound M-BCC uses the FIFO method of inventory At the beginning of the year, there were 2,000 pounds of coffee in inventory Jan. 4 M-BCC just started a Coffee Membership Service where customers receive automatic monthly shipments of coffee for a membership fee. $6,300 was received for the Coffee Club for 2016 shipments. Individual club fees are $15 per month. Jan. 6 Paid the utility bill Year-end payroll is processed and paid. 70 pounds of coffee shipped to Club members Jan. 7 Coffee shipped to various customers (non-members), with FOB Shipping terms Price per pound - $21 Customers billed $62,265 Jan. 7 Paid insurance premium of $4,500 for the period 1/1/16 to 12/31/16. M-BCC's bookkeeping practice is to charge the payment to the insurance expense account. Jan. 10 The company secured and registered its trademark that it developed. The costs are deemed significant at $6,500 Jan. 13 Purchased $1,350 in supplies. Jan. 17 Made scheduled payment to grower Jan. 18 Declared dividends in the amount of $1,750 Mid month payroll paid for $3,800 800 pounds of coffee shipped to Tim Hortons, on account for $16 pound, FOB shipping terms Jan. 20 Received notice from bankruptcy court that customer, Chez Caf is relieved of its obligation in the amount of $525 Jan. 24 M-BCC rented its equipment to supplier, Smucker, to increase its efficiency so M-BCC could receive timelier shipments. Smucker paid M-BCC $900 for a two-week rental Jan. 25 Made dividend payment. Jan. 28 Wage expenses incurred at month end, to be paid Feb. 4, are $4,100 Jan. 29 Received $51,300 on Accounts Receivable Jan. 30 Received a utility bill for $1,050, payable on Feb. 6 Jan. 31 Made monthly payment on note Received check in full from Tim Hortons Jan. 31 Notes Shipped 70 lbs. of coffee to Club Members with FOB Destination terms, with customers expecting to receive their shipments on Feb. 4 M-BCC decided to adjust its reserve to 2.5% of the outstanding account balances M-BCC uses straight line depreciation The income tax rate is 30% (avoid book-tax differences) Par value of the common stock is $10. There are 22,000 shares authorized. Supplies on hand at year end, 480 The patent of the advanced coffee production method was approved Dec. 31, 2014, at $20,000 and an 8-year useful life and a 20-year legal life Maxwell-Bucks Coffee Co. General Journal: January 2016 JOURNAL ENTRIES DATE REF ACCOUNT DEBIT CREDIT Maxwell-Bucks Coffee Co. Trial Balance BEGINNING BALANCE DEBIT CREDIT ACCOUNT CASH $ ACCOUNTS RECEIVABLE 41,000.00 56,000.00 Reserve for Doubtful Accounts INVENTORY SUPPLIES REF $ 840.00 18,000.00 600.00 PREPAID INSURANCE PROPERTY PLANT AND EQUIPMENT EQUIPMENT ACCUMULATED DEPRECIATION TRUCK ACCUMULATED DEPRECIATION PATENT 20,000.00 20,000.00 - 17,500.00 ACCOUNTS PAYABLE 9,000.00 WAGES PAYABLE 4,900.00 UTILITIES PAYABLE 1,075.00 NOTES PAYABLE UNEARNED MEMBERSHIPS INCOME TAXES PAYABLE OWNERS EQUITY COMMON STOCK RETAINED EARNINGS SALES REVENUE MEMBERSHIP REVENUE COST OF GOODS SOLD INSURANCE EXPENSE WAGE EXPENSE UTILITY EXPENSE DEPRECIATION EXPENSE INTEREST EXPENSE BAD DEBT EXPENSE INCOME TAX EXPENSE 60,000.00 57,285.00 TRANSACTIONS DEBIT CREDIT ADJUSTED BALANCE DEBIT CREDIT CLOSING ENTRIES DEBIT CREDIT ENDING BALANCE DEBIT CREDIT TOTALS $ 153,100.00 $ 153,100.00