TRANSACTIONS FOR THE MONTH OF JANUARYNote that we will ignore Sales Tax for this project. Normally, one would have to provide an explanation for each general journal entry. However, since we are recording all entries in the general journal, explanations will not be necessary.

Jan 2 Issued a bond, face value $100,000, to Daniel Scheris Investment Company for $91,000 cash. Terms of the bond is 5 years and the stated interest rate is 9.6%. Interest and amortization will be recorded as an adjusting entry the end of the month.

2 Issued 6,000 shares of common stock for $50,000. Remember that common stock is always recorded at par value.)

3 Sold a Yamaha Waverunner for $8,000 on account to Buena by the Shore,). Issued Invoice No. 719. (Note that we are using FIFO for inventory)

(Note that when making a sale using a perpetual inventory system, you always need two entries, one recognizing the sale, and one reducing inventory.)

Cash or/and Accounts Receivable XX

Sales XX

Cost of Goods Sold XX

Merchandise Inventory XX

3 Purchased a Snyder Craft for $16,800 on account from Szumowskiss Boats, Invoice No. 630, terms 3/10, n/60. Note that since we are using a perpetual inventory system, all purchases and sales need an entry in the account Merchandise Inventory.

4 Purchased various boat merchandise of $3,000 from Szumowskiss Boats on Account, Invoice No. 631, terms 3/10, n/60.

4 Issued Check No. 292 to Szumowskiss Boats in full settlement of our December account balance --Invoice No. 580, terms n/30.

Issued credit memorandum No. 75 to Parth Patels Boats for $1,000 for miscellaneous merchandise previously purchased. Our cost and value is 500. (Reverse the entry listed above on the 2^nd but use Sales Returns and Allowance instead of the account Sales and the numbers given in this entry.)

4 Issued Check No. 293 to Copier Repair Co. for copier repairs, $500.

5 Received payment in full from Parth Patels Boats on sale made in December. (Do not forget the credit memorandum on the 4th.)

5 Sold a Seahawk to Evan Hughes Boats, for $36,000. We received $10,000 as a down payment. Issued Invoice No. 720.

Returned defective merchandise from the December 3^rd purchase to Szumowskiss Boats and received a $500 credit memorandum. (Credit Merchandise InventoryBoat Supplies)

6 Sold all the old warehouse storage equipment for $22,000. The warehouse equipment has a five-year life and a salvage value of $4,000. Assume the company uses the straight-line method to depreciate Warehouse Equipment. (Step 1Bring the depreciation up to date by depreciating the warehouse for one month. Step 2Remove the asset and accumulated depreciation and debit cash. Step 3Plug to a realized gain or loss account-- 701.)

7 Sold boat merchandise on account to Paige Connery Best Buys for $900, our cost $450. Invoice no. 720.

8 Issued Check No. 294 to Amanda Muetters Contractors to purchase a Building for $150,000. Straight-line method will be used over 20 years without any salvage value. At this time, you only will need to make the entry for the purchase of the building. (Note, that a months depreciation will have to be recorded as an adjusting entry at the end of the period.)

10 Issued Check No. 295 to the Internal Revenue Service in payment of FICA taxes accrued as of December 30 (FICA Taxes Payable look at beginning trial balance for amount.)

10 Issued Check No. 296 to the Internal Revenue Service in payment of federal income taxes withheld as of December 30. (Employees Federal Income Taxes Payablelook at beginning trial balance for amount.)

.

Issued Check No. 297 to Kyj and Cheatem Investment Company for $3,000 of

equity marketable securities to hold excess cash. (This should be debited

to Investments--Available for Sale Securities Account number 109.)

11 Issued Check No. 298 to Mathew Hamiltons Distributors in full settlement of the December 30 purchase, Invoice No. 1002, terms n/20.

11 Issued Check No. 299 to Szumowskiss Boats in full settlement of our account for the two purchases early this month. (Recall the credit memorandum on the 5th.) (Note that when paying suppliers within a discount period, one must credit Merchandise Inventory.)

15 Check No. 300 voided. (No entry needed.)

15 Sold boat supplies on account to Parth Patels Boats , for $1,800 (Cost $900). Issued Invoice No. 721.