Tides Tea Company began operations on January 1, 2022. During the first year of business, the company

Question:

Tides Tea Company began operations on January 1, 2022. During the first year of business, the company had the following transactions:• January 18: The owners invested $200,000 (the par value of the stock) into the business and acquired 40,000 shares of common stock in return.• February 1: Tides bought factory equipment in the amount of $45,000. The company took out a long-term note from the bank to finance the purchase.• February 28: The company paid cash for rent to cover the 12-month period from March 1, 2022, through February 28, 2023, in the amount of $27,000.• March 1: Tides purchased supplies in the amount of $28,000 on account.• March 22: Tides recorded sales revenue in the amount of $120,000. Half of this amount was received in cash and half was paid on account. Ignore Cost of Goods Sold.• May 1: Tides received cash payments to pay off all the customer accounts.• May 29: The company paid wages of $34,000 in cash.• July 12: Tides recorded sales revenue in the amount of $180,000, all of which was paid in cash. Ignore Cost of Goods Sold.• July 31: Tides paid $3,200 cash for interest on the note taken out on February 1.• August 8: Tides paid off the balance owed to a supplier for the purchase made on March 1.• September 1: Tides paid $6,000 cash for utilities.• October 14: Tides paid wages of $24,000 in cash.• November 10: Tides recorded sales revenue in the amount of $218,000. One payment of $100,000 was received in cash; the remainder of this balance was sold on account. Ignore Cost of Goods Sold.• December 31: Tides declared and paid a $25,000 dividend.

The chart of accounts used by Tides Tea Company is as follows: