Transaction 16-19

N O A B C D E F G H I J K L M 1 Tyson's Dollar Store was formed on April 1, 2020. The following are the activities prior to opening the doors to the public. 2 The company chooses to use the periodic inventory system. They planned to use LIFO cost system. The company will use a calendar year end. 3 All equipment was deprecited using the straight-line method. Inventory is grouped by cost price not by Item type. 4 The company created a chart of accounts based on their assumption of the activities the company would be involved with, 5 Tyson uses periodic inventory method. Adjusting entries are done at the end of each month. Tyson invest $10k for 50 shares of stock. 1-Apr Received a business loan from TD Bank of $50,000, 6%, 3 years 1-Apr Sold 50 shares to family member for $10,000 1-Apr Start-up cost, including attorney fee of $5000 incurred and paid 1-Apr Signed a 10 year lease contract for $2,500 per month for the store and paid a security deposit of $5,000 and 3 months lease payments. 1-Apr Purchased one year liability insurance for $2000 cash. 1-Apr Contracted Just Shelves & Construction Corp. for $18,000 to do a build-out which included shelving, counters, lighting, etc. paid a deposit of $6000, 1/3 of the balance should be paid on 4/15/19 and the balance at completion 1-Apr Paid a deposit of $400 to Con Edison for power-on. 5-Apr Paid $40 to Water Department for installation of water meter. 5-Apr Purchased cash register for $1075 for cash. Free delivery. 5-Apr Purchased on account, awnings with sinage and neon lights from Bright Light costing $6,700 with zero salvage value and guaranteed life of 10 years. 6-Apr Interviewed 1 employee and plan to pay her $350 per week beginning 5/1 for 6 months and $500 weekly thereafter. (information only) 10-Apr Purchased 2 hand trucks for $175 each. Useful life of 15 years.Delivery FOB destination seller paid the shipping cost