You have been employed by Sourdough to be their General Ledger Bookkeeper. As such, you will maintain the general ledger and prepare year-end financial reports. Record the June transactions in the appropriate journals and subsidiary ledgers

A

Exchanged 500 shares of common stock for a used delivery van. The market value of the common stock is $18. Record this transaction in the general journal.

B

1,500 shares of our own common stock were purchased on the open market at $17 per share. (Check #1010).

C

Cash sales for the third week of June were $14,800 (Cost $10,360).

D

Received $10,000 of merchandise purchased on credit from Ventura & Sons; Invoice 30046; terms 2/10, n/30; F.O.B., shipping point; freight charges totaled $50. Issued check 1011 to Speedy Freight.

E

Sold Susan Rossey $350 of merchandise on credit (Cost $245). Invoice 604; terms 2/10, n/30.

F

Received $30 from Tim Benson in partial payment of his purchase on June 4.

G

Sold Alice Thompson $300 of merchandise on credit (Cost $210). Invoice 605; terms 2/10, n/30.

H

Received a check from Joshua Alcorn for $110 to apply toward his purchase of May 23.

I

Susan Rossey returned some of the merchandise purchased on June 23. Credit Memo #17 was issued for $150. Cost of the merchandise was $105.

J

Received a check from Curt Fairchild for full payment of his June 19 purchase of $150. Terms of the sale were 2/10, n/30.

K

Cash sales for the fourth week of June were $13,200 (Cost $9,240).

L

Received $15,000 of merchandise from Terrance Morgan & Associates; Invoice 26542; terms 2/10, n/30; F.O.B., shipping point. Issued check 1012 to Speedy Freight for $100.

M

Issued check 1013 to the Daily News for June advertising of $1,200.

N

Issued check 1014 for $150 to Empire Telephone Company for June telephone usage. (Charge to Utilities Expense).

O

To enlarge the selling space in the showroom, bonds were issued and sold to cover the cost of remodeling. Sourdough Alaska sold $100,000 par value, 5-year bonds, which pay semiannual interest at 12% on November 30, and May 30. The current market rate is 10%. Record this transaction in the general journal. (Hint: this journal entry requires you to compute the present value of bonds. See Chapter 14 appendix for more information.)

P

Issued check 1015 to The Power Company for June utilities, $450.

Q

Received a check from Susan Rossey for full payment of her purchase of June 23, less merchandise returned on June 26, and allowable cash discount.

R

Cash sales for the last two days of June were $1,500 (Cost $1,050).

S

Issued check 1016 for monthly salaries, $11,200.

T

Purchased a 3-year fire insurance policy from Guardian Insurance Company. Issued check 1017 for $12,000.

U

Exchanged a display case placed in service on June 1, 2018 (original cost $12,000) for a new display case, list price $15,000, terms F.O.B., destination. The trade-in allowance was $2,000 and the balance due was paid in cash. Freight costs are $65 and insurance in transit was $45. Display cases are classified as Store and Office Equipment. The estimated useful life of both the old and new display cases is 10 years. (Check No. 1018) Record this transaction in the general journal. (Hint: This transaction requires that you compute the current book value of the old display case and then whether there was a gain or loss on the transaction. This is covered in the appendix to Chapter 10. The new display case should be added at $15,000.)

V

The Board of Directors declared a cash dividend of $0.15 per share to shareholders of record July 15. Dividend to be paid August 1.