December 6 Cheque no. 405 for $700.00 plus the appropriate taxes was issued for payment of purchases of office supplies made at Le Manuscrit Inc.

December 6 Received a favorable credit report concerning a new client. His order for $15 900.00 plus the appropriate taxes was filled out. Invoice no. 1011 was issued to Grard D. Laflac Inc.

December 6 Purchased $140.16 (tax included) of gasoline for the truck and car with our Petro-Canada credit card. The GST tax credit for this purchase is $8.61. The QST tax credit for this purchase is $8.55.

December 7 Issued cheque no. 406 for $325.00 plus the appropriate taxes to Jules Poitras Inc. for maintenance work in the building.

December 7 Issued cheque no. 407 to H.P.S. Ltd. to settle our account. A 2 % discount was taken.

Page8

December 7 Cheque no. 408 was issued to our broker, Omer Cantil, upon receipt of the invoice regarding our purchase of shares from Sonex Ltd. on December 3. A 2 % commission fee was added. The total amount will be considered as our investment cost. Financial services are exempt from tax.

December 7 The cash sales of the week totaling $24 000.00 plus the appropriate taxes were deposited.

December 10 Received an invoice totaling $19 100.00 plus the appropriate taxes for merchandise purchased from Cabernet Ltd.. Terms: 2/10, n30. Date: December 7. Transportation: FOB point of shipment.

December 10 Received a cheque from Valbert Musique Inc. in settlement of the November 10 invoice (no. 925).

December 10 Received a cheque from Abacada Inc. in settlement of the November 10 invoice (no. 928).

December 10 Issued cheque no. 409 to Octoson Ltd. to settle our account.

December 10 Issued cheque no. 410 for $4 826.47 plus the appropriate taxes to Construction Cit Nouvelle Inc. for work done at the home of the major shareholder of Le Mur du Son Ltd., Mr. Ondiret.

December 11 Prepared the payroll for the 2 weeks ended December 7.

Regular Hours Armand Frappier 80 Claude Bernard 80 Cline Lafrance 70 Ren Trudeau 80

Do not forget to record the payroll taxes in the general journal.

December 11 Issued cheque no. 411 to transfer amount of net salaries to the payroll bank account for the 2 weeks ended December 7.

December 11 Issued payroll cheques no. 101 to 104 to the employees.

December 11 Received an invoice from Petro-Canada for our November transactions. The invoice date is December 5 and the due date is December 28. The amount due is $329.00.

December 11 Ren Trudeau attended a conference in Quebec City in mid-November. The conference dealt with the technological advances in sound equipment. Issued cheque no. 412 for $925.00 plus the appropriate taxes to Mr. Trudeau to cover the costs of his hotel.

December 12 Received a cheque from La Plume du Nord Inc. to settle the November 12 invoice (no. 950).

December 12 Issued cheque no. 413 for $115.00 plus the appropriate taxes to Imprimerie Garnier Inc. to pay for the advertising posters in the store.

December 12 Sold merchandise on credit to Dormi Ltd. in the amount of $ 48 900.00 plus the appropriate taxes Invoice no. 1012.

December 12 Received an invoice for merchandise purchased from Photolum Ltd. Terms: n30. Date: December 10. Total: $15 200.00 plus the appropriate taxes.

December 13 Received merchandise ordered on December 10 from Cabernet Ltd.. Cheque no. 414 for $425.00 plus the appropriate taxes was issued to Rapidex Ltd. to pay for the transportation.

December 14 Issued cheque no. 415 for $325.00 plus the appropriate taxes to Jules Poitras Inc. for maintenance work on the building. December 14 Received a cheque from Aux Frontires du Possible Inc. to settle invoice no. 1010 and invoice no. 952. The invoices are dated December 5 and November 14 respectively.

Page9

December 14 Received a cheque from Grard D. Laflac Inc. to settle the December 6 invoice. (no. 1011)

December 14 Issued cheque no. 416 to the Receiver General of Canada for $1 144.92, along with the third part of form PD7A duly completed for remittance of income tax, QPP and EI premiums withheld at source. The company could have made the payment directly at the bank.

December 14 Issued cheque no. 417 to the Minister of Revenue of Quebec for $10 229.00, along with the first part of form PV-4 duly completed and titled "Sales Tax Remittance Form". Once again the payment could have been made at the bank.

December 14 Issued cheque no. 418 to the Minister of Revenue of Quebec for $1 256.20, along with the second part of form TPZ-1015.R. duly completed and titled "Remittance of withholdings and contributions."

The following is a detailed list of Provincial withholdings for the month of November. Employee's Employers Share Share

Quebec income tax $ 851.20 - QPP 66.00 $ 66.00 QHSF - 273.00 --------------------------------------- $ 917.20 $ 339.00 ======================

December 14 The cash sales of the week, $21 000.00 plus the appropriate taxes were deposited.

December 14 Issued cheque no. 419 in the amount of $1 070.00 to the Order of the Corpusculaire Regd for various maintenance services provided. This enterprise does not bill the GST and QST. According to the law an organization that has sales less than $30 000.00 per year is not required to charge sales tax but at the same cannot receive a tax refund for sales taxes paid.

December 14 Issued cheque no. 420 to replace cheque no. 415 that was lost by Jules Poitras Regd. Indicate canceled in the cash disbursements journal and cross a line through cheque no. 415.

December 14 Purchased $104.32 (tax included) of gasoline for the truck with our Petro-Canada credit card. The GST on this purchase is $6.41, the QST is 6.37.

December 14 Received a bank statement listing all our transactions for the month of November. The bank debited $22.40 from our account for bank charges.

December 17 Received merchandise ordered from Photolum Ltd. on December 12.

December 17 Received a cheque of $48 000.00 from Omer Cantil, our stock broker, following the issuance of 5 000 shares of Le Mur du Son Ltd. at $10 a share. The broker took a $2 000 commission. Credit Common Stock for the net amount.

December 18 Used our Petro-Canada credit card to pay for repairs to the truck. The total of the repairs amounted to $432.00 plus the appropriate taxes.

December 19 Sonex Inc. declared dividends of $0.50 per share to all shareholders registered by December 26. We own 11 000 shares. December 19 Issued cheque no. 421 for $221.00 plus the appropriate taxes to pay for packing supplies purchased from Embaltout Ltd.

Page10

December 20 Received an invoice from Son et Lumire Inc. for merchandise purchased on December 18. Terms: 1/10, n30. Total: $17 800.00 plus the appropriate taxes.

December 20 Sold merchandise on credit to Cosmos Inc.. Invoice no. 1013. Total: $28 700.00 plus the appropriate taxes. Terms: 2/10, n30.

December 20 Issued cheque no. 422 to Cabernet Ltd. In payment of our November 29 invoice.

December 21 Sold merchandise on credit to a new client, Sondec Ltd.. Invoice no. 1014. Total: $39 900.00 plus the appropriate taxes.

December 21 Declared dividends of $0.25 per share to all shareholders of record on December 31, 20X4.

December 21 Received an invoice for $8 500.00 plus the appropriate taxes from Microson Ltd. for merchandise purchased on December 19. Terms: 1/10, n30.

December 21 Sold merchandise on credit to La Plume du Nord Inc.. Invoice no. 1015. Total: $32 200.00 plus the appropriate taxes.

December 21 Received a cheque from Dormi Ltd. as payment for invoice 1012.

December 21 Issued cheque no. 423 for $325.00 plus the appropriate taxes to Jules Poitras Inc.

December 21 Deposited this week's cash sales, $36 000.00 plus the appropriate taxes.

December 24 Received an invoice of $4,500.00 plus the appropriate taxes for office supplies purchased from Papeterie St-Paul Inc. on December 24. Terms: 2/10, n30.

December 24 Brocol Ltd. sends a truck to pick up merchandise that it urgently needs. Invoice no. 1016 for $55 700.00 plus the appropriate taxes is sent along with the merchandise.

December 24 The payroll for the week ended December 21 is being prepared today instead of the 25th since December 25 (Christmas) is a legal holiday. Regular Hours Armand Frappier 80 Claude Bernard 80 Cline Lafrance 70 Ren Trudeau 80

December 24 Issued cheque no. 424 to transfer amount of net salaries to the payroll bank account for the week ended December 21.

December 24 Issued payroll cheques no. 105 to 108 to the employees.

December 24 Purchased $106.00 plus the appropriate taxes of gasoline for our truck, paid for with our Petro-Canada credit card.

December 26 Received a credit note for $2 100.00 plus the appropriate taxes relating to some defective merchandise received on December 20th from Son et Lumire Inc.

December 26 Received an invoice for $8 938.00 plus the appropriate taxes relating to merchandise purchased from Techno-Logic Inc.. Invoice date December 24. Terms: 2/10, n30.

December 26 Issued cheque no. 425 for $329 to Petro-Canada as payment for the statement received on December 11th. December 27 Issued cheque no. 426 to Photolum Ltd. to pay the November 26 invoice. The December 5 debit memo was taken into account.

Page11

December 28 Received a cheque from Cosmos Ltd. as payment for the November 30 invoice (no. 1000), as well as partial payment of invoice no. 1013 (half the amount).

December 28 Sold $7 500.00 plus the appropriate taxes of merchandise on credit to Valbert Musique. Invoice no. 1017.

December 28 Received a cheque from Sonex Inc. for the dividends it had declared.

December 28 Received an invoice for $16 350.00 plus the appropriate taxes from Octoson Inc. for merchandise purchased on December 26. Terms: n30.

December 28 Received a cheque for $3 000.00 plus the appropriate taxes from Emile Bordulac, a young painter who wishes to use our showroom to exhibit his work. The exhibition will take place in January 20X5.

December 28 This week's cash sales were deposited, $20 000.00 plus the appropriate taxes.

December 28 Issued cheque no. 427 for $195.00 plus the appropriate taxes to Jules Poitras Inc. for three days of maintenance work.

December 31 Received an invoice from Confort au Travail Inc. for office furniture purchased on December 28. Terms: n30. Total: $15 000.00 plus the appropriate taxes.

December 31 Received merchandise, along with the invoice, from Antonel Ltd.. Terms: n45. Date: December 28. Total: $11000.00 plus the appropriate taxes.

December 31 Issued cheque no. 428 to Papeterie St-Paul to pay the December 24 invoice.

December 31 Received a cheque from La Plume du Nord Inc. for $9 800.00, as partial payment of invoice no. 1015, less the 2% discount.

December 31 Issued cheque no. 429 to the National Bank to pay the monthly interest on the December 3 loan, as well as $1 666 of the principal. Calculate one whole month's interest.

December 31 Issued cheque no. 430 to Omer Cantil in the amount of $20 400.00 for the purchase of bonds issued by Mines d'or Klondike. The bonds provide 16% annual interest rate paid semiannually every June 30 and December 31. Include the whole amount of the cheque as the investment.

December 31 Received a bill from Hydro-Quebec for $660.00 plus the appropriate taxes. The bill covers the period beginning October 1 and ending November 30. Date: December 28. Terms: n30.

December 31 Received the November telephone bill from Bell Canada for $320.00 plus the appropriate taxes. Date: December 28th.

December 31 Issued cheque no. 431 for $250.00 plus the appropriate taxes to Exact Ltd. for bookkeeping services received in December.

December 31 Issued cheque no. 432 to the Receiver General of Canada for the monthly payment of taxes on the company's 20X4 income. Payment was based on last year's income and the amount of the cheque was $1 440.00. These payments are made in advance and are normally recorded as a debit to income tax payable, even though the actual amount payable will not be known until the end of the year.

December 31 Issued cheque no. 433 to the Minister of Revenue Quebec for the monthly payment of taxes on the company's 20X4 income. The amount of the cheque is $288.00.

Page12

December 31 Issued cheque no. 434, for the amount of $307.69 tax included, payable to Cline Lafrance, petty cash cashier. She presents the following receipts and uses the proceeds of the cheque to reimburse the fund:

Rapidex Courier Service $28.49

Taxi fare for Salesmen (Traveling Expense) 85.47

Federal Express Courrier service 136.75

Parking for Mr. Rne Trudeau (Travelling Expense) 56.98

December 31 Issued cheque no. 435 payable to Quebec Trust Co. in the amount of $99,450 in payment of a note payable signed in 20X3 plus accrued interest since that date.