Transactions to account for during 2011

Jan 1 Reversing entries made where appropriate.

Jan 1 Purchased on credit and received $160,000 of product inventory.

Jan 1 Purchased on credit and received $5,000 of office supplies inventory.

Jan 5 Made all payments related to 4th quarter payroll.

Jan 10 Paid $1,000 utility bill for 4th quarter.

Mar 31 Sold product inventory for $320,000 on credit and shipped to customers.

Mar 31 Made payments to suppliers for $125,000.

Mar 31 Receipts on account and prepayments from customers total $290,000. AR of $1,800 written off.

Apr 1 Purchased on credit and received $185,000 of product inventory.

Apr 1 Purchased on credit and received $3,000 of office supplies inventory.

Apr 1 Made $5,000 interest payment on first loan.

Apr 1 Paid dividends of 13,000

Apr 5 Made all payments related to 1st quarter payroll. Gross wages of $65,000,

income taxes wages of $61,750, social security wages of $65,000, Medicare wages of $65,000, state unemployment wages of $52,000, federal unemployment wages of $49,000.

Apr 10 Paid $1,200 utility bill for 1st quarter.

May 1 Sold 80,500 shares of common stock for $140,000

May 1 Purchased $5,000 insurance policy for May 1 to October 31.

June 30 Sold product inventory for $280, 000 on credit and shipped to customers.

June 30 Made payments to suppliers for $130,000.

June 30 Receipts on account and prepayments from customers total $310,000. AR of $1,700 written off.

July 1 Purchased on credit and received $165,000 of product inventory.

July 1 Purchased on credit and received $11,000 of office supplies inventory.

July 1 Sold equipment with original historical cost of $20,000 for $3,000. Its

depreciation table is:

Equipment #315

Date purchased May 1, 2007

Purchase cost $20,000

Salvage value $0

Year Depreciation expense Accumulated depreciation Book value

2007 2,000 2,000 18,000

2008 4,000 6,000 14,000

2009 4,000 10,000 10,000

2010 4,000 14,000 6,000

2011 4,000 18,000 2,000

2012 2,000 20,000 0

July 1 Purchased equipment (5 year useful life and 0 salvage value) for $80,000.

This will be identified as Equipment #512

July 5 Made all payments related to 2"" quarter payroll. Gross wages of $70,000,

Income taxes wages of $66,500, social security wages of $70,000, Medicare wages of $70,000, state unemployment wages of $37,000, federal unemployment wages of $11,000.

July 10 Paid $800 utility bill for 2nd quarter.

Sep 30 Receipts on account and prepayments from customers total $270,000. AR of`$1,600 written off.

Sep 30 Sold product inventory for $487,000 on credit and shipped to customers.

Sep 30 Made payments to suppliers for $135,000.

Oct 1 Made $5,000 interest payment on first loan.

Oct 1 Purchased on credit and received $110,000 of product inventory.

Oct 1 Purchased on credit and received $5000 of office supplies inventory.

Oct 1 Paid dividends of 10,000

Oct 5Made all payments related to 3rd quarter payroll. Gross wages of $60,000,

Income taxes wages of $57,000, social security wages of $60,000, Medicare wages of $60,000, state unemployment wages of$17,000, federal unemployment wages of $5,000.

Oct 10 Paid 1,100 utility bill for 3rd quarter.

Oct 25 Purchased land for 60,000

Nov 1 Purchased $6,000 insurance policy November 1 to April 30.

Dec 31 Sold product inventory for $430,000 on credit and shipped to customers.

Dec 31 Receipts on account and prepayments from customers total $330,000. AR of $1,500 written off.

Dec 31 Made payments to suppliers for $125,000.

Dec 31 Made $44,584 installment payment on second loan.

Dec 31 Accrued for 4th quarter payroll. Gross wages of $70,000, income taxes wages of $66,500, social security wages of $70,000, Medicare wages of $70,000, state unemployment wages of $9,000, federal unemployment wages of $0.

Dec 31 Ending product inventory of $85,000 valued at FIFO. Index value for $-

Value LIFO on December 31,2011, is 1.2333.

Dec 31 Office supplies on hand, 500.

Dec 31 Record accrued interest for loans.

Dec 31 Record accrued utilities of 1,900.

Dec 31 Record time passage on insurance policy.

Dec 31 Record adjustment for uncollectible accounts.

Dec 31 Prepayments still owed to customers amount to $18,000.

Dec 31 Record depreciation for building.

Dec 31 Depreciation for equipment (not including #512 or #315) is $45,200.