Will Rate:

P13.2B (LO 1,3) (Liability Entries and Adjustments) Listed below are selected transactions of Jian Furniture Store for the current year ending December 31. 1. On December 1, the store purchased for cash two delivery trucks for $70,000. The trucks were purchased in a state that applies a 6% sales tax. 2. On December 10, the store received $2,000 from the local community theater as a deposit to be returned after certain fur- niture to be used in stage production was returned on January 10. 3. During December, cash and credit card sales totaled $524,000, which includes the 6% sales tax that must be remitted to the state by the fifteenth day of the following month. 4. The store determined it will cost $78,000 to restore the area (considered a land improvement) surrounding one of its park- ing lots, when the store is closed in 5 years. Jian estimates the fair value of the obligation at December 31 is $61,500. Instructions Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal en- tries relative to the transactions that would be required to present fair financial statements at December 31. Date each entry. For simplicity, assume that adjusting entries are recorded only once a year on December 31. (Round computations to nearest dollar.)