Computerized Accounting Cycle Exercise Mr. And Mrs. Knowledge run an auto parts store, Knowledge Corporation. The company uses a perpetual inventory accounting system and established December 31 st as its fiscal vear end. The following business transactions occurred during the month of December. Des. 2 gought store equipment on account from the Mercy Company for $50,000. Payment must be made by January isth. Dec. 1 Paid $18,000 store rent for the period from December 1st through February 28 th. Dec. 5 Purchased Merchandise on account from Mega Co, for \$35,000. The invoice Date was Dec. 5 ; terms 2/10,n/30 Dec. 5 Paid $650 freight bill to Sun Co, for merchandise delivered Dec. 5 Dec. 7 Paid for a 36 -month contents insurance policy for fire damage at a cost of $12,000 Dec. 8 Purchased $15,000 of merchandise for resale; paid cash at time of purchase Dec. 10 Returned damaged merchandise to Mega Co, and received a $6,500 credit memo Dec. 10 Sold merchandise to Sunshine Hall on account. The sales price was $22,000 and the cost was $8,000. The terms of sale were 1/15,n/30 Dec. 12 Paid balance due to Mega Co. Dec. 15 Cash Sales for the first half of December totaled $60,000. Merchandise cost was $33,000. Dec, 16 Sold merchandise to Dunn Happy on account. The sales price was $5,000 and the cost was $2,500. The terms of sale were 1/10.n/30 Dec. 16 Paid wages for the first half of December totaling $17,000 Dec. 18 Purchased merchandise on account from Nice Company for $48,000. The invoice was dated Dec. 18 th; terms 2/5,n/30 Dec, 20 Purchased $1,000 of office supplies and issued a check Dec. 22 Received merchandise returned by Dunn Happy. Issued a credit memo to Happy for $600. The cost of Merchandise returned was $240 Dec. 22 Received a check from Sunshine. Hall in payment for Dec. 10 involce (less discount) Dec. 25 Received a check from Dunn Happy in payment of involce (less discount) Dec, 28 Sold merchandise to Joy Brown on account. The sales price was $12,600 and the cost was 6,300 . The terms of sale were 1/10,n/30 Dec. 28 Paid electricity bill of $850 for December usage Dec. 28 Received phone bill for $350 for December usage. Payment to be made January 12 th Dec. 28 Paid Nice Company for the invoice Dec. 18 (less discount) Dec. 31 Cash sales for the last half of December totaled $45,000. Merchandise cost was $19,500 Dec. 31 Paid wages for the second half of December totaling $20,000 Dec. 31 Received $700 invoice for December delivery services. Payment to be made January 10 th Dec. 31 The company declared and paid cash dividends totaling $0.10 per share