Hello, I need help with completing the journals, post to the general ledger, complete the worksheet and prepare financial statements for the attached scenario.

Fonzie started a motorcycle shop in December, 2019, doing repair work.Starting January 1, 2020, he is confining himself to the sale of motorcycle parts and accessories, only doing repair work occasionally.

Sales tax of 5% will apply to all merchandise sales.Accessories and motorcycle parts are considered to be the same thing, merchandise.

Beginning balances in the general ledger reflect his December, 2019, transactions.The beginning balance in accumulated depreciation account is one month of depreciation on items purchased in 2019.He borrowed $20,000 in December, 2019, from Mr. Cunningham and signed a note promising to pay interest at 5% per annum, payable monthly.The entire note balance will be due in 5 years.

Accessories or parts are considered merchandise for resale.Supplies are items which are consumed by the business, not resold.

Date

Description of activity

Amount

Jan 3

Purchased motorcycle accessories on credit from Acme Motorcycle

1,200.00

Jan 4

Sold on credit motorcycle accessories - John Jones

300.00

Jan 5

Paid ABC Rental for rent for the month of January

300.00

Jan 5

Paid State Farm Insurance for 6 months policy for period of Jan - June

1,200.00

Jan 6

Sold accessories on credit - Sam Smith

700.00

Jan 6

Collected balance of outstanding account from Red Robin Motorcycle Club

1,000.00

Jan 7

Sold accessories for cash

250.00

Jan 9

Bought advertising from Anytown Register on credit

100.00

Jan 9

Paid outstanding balance on supplies to Motorcycle Haven

1,300.00

Jan 10

Sold on credit motorcycle accessories - Charlie Chan

400.00

Jan 10

Collected on account from John Jones

315.00

Jan 12

Sold accessories for cash

500.00

Jan 13

Paid Mr. Cunningham interest on note, one month's worth at 6%

?

Jan 13

Did repair work on credit for Charlie Chan

250.00

Jan 14

Paid utility bill to Municipal Electric

75.00

Jan 14

Paid himself a withdrawal

2,000.00

Jan 16

Did repair work for cash

300.00

Jan 16

Sold accessories on credit - John Jones

175.00

Jan 17

Paid one-half of the amount owed to Acme Motorcycle

?

Jan 17

Cash sales of accessories

300.00

Jan 18

Sam Smith returned items he had previously purchased

100.00

Jan 18

Bought a display case for cash from Used Furniture

1,000.00

Jan 20

Cash sales of accessories

250.00

Jan 21

Purchased motorcycle accessories on credit from Acme Motorcycle

400.00

Jan 21

Bought advertising from Anytown Register on credit

100.00

Jan 23

Paid Anytown Register for Jan 9 purchase

100.00

Jan 24

Cash sales of accessories

100.00

Jan 24

Sold accessories on credit - Charlie Chan

250.00

Jan 25

Cash sales of accessories

125.00

Jan 26

Received payment from Charlie Chan

200.00

Jan 28

Sold accessories to Sam Smith on credit

300.00

Jan 30

Paid himself a withdrawal

500.00

Jan 30

Purchased supplies from Motorcycle Haven on credit

500.00