1. Please prepare and post the complete general journal entries for the following transactions to the general journal and also to each individual general ledger account. Use GJ# for Posting Reference and increase the # for each separate journal entry.
   1. Be sure to update the account Balance column mathematically after each posting.
   2. Do not prepare any adjusting journal entries.
   3. Do not prepare any journal entries for the interest expense related to the notes payable

TRANSACTIONS:

1. January 2 The Company received cash in exchange for issuing 40 shares of common stock at $100 par value.
2. January 2 The Company bought equipment costing $50,000 with an estimated useful life of 5 years, paying cash of $10,000 and financed the balance with note payable with interest at the rate of 10% per annum. The entire principal balance plus interest is due and payable December 31. There is no salvage value to the equipment.
3. March 1 - The Company established a Line of Credit in the amount of $500,000 with an interest rate of 12% per annum.
4. April 3 The Company received cash in exchange for issuing 10 shares of preferred stock at $100 par value.
5. June 6 The Company purchased Merchandise Inventory for cash in the amount of $75,000.
6. July 5 The Company purchased a building for $2,400,000 and land for $600,000 paying cash of $1,500,000 and signing a long-term mortgage in the amount of $1,500,000.
7. August 9 The Company billed a customer (ACE) $190,000 for services it provided in August. ACE must pay the Company within 30 days.
8. August 31 The Company received an invoice in the mail from e-Bay for advertisements it ran in August amounting to $3,000. The invoice must be paid within 30 days.
9. September 4 The Company received a check in the mail from ACE for $190,000.
10. September 27 The Company paid the invoice for the advertising it ran on e-Bay in August.
11. October 1 The Company paid cash for the following items.

• Rent expense - $10,000 for the next 10 months.
• Insurance expense - $10,000 for the next 10 months.
• Travel Expenses - $4,000.
• Commission Expense - $4,000.
• Office Expense - $2,000.
• Utilities Expense - $10,000.

12. November 18 The Company received $500,000 cash from ACE for services to be rendered by the Company in January of next year.
13. December 10 The Company paid payroll expense in the amount of $200,000 and payroll taxes in the amount of $40,000; all in cash.
14. December 24 The Company paid a cash dividend of $40,000.

Chart of Accounts:

Chart of Accounts: 100 Cash 105 Accounts Receivable 110 Marketable Securities 115 Merchandise Inventory 120 Supplies Inventory 125 Equipment 130 Furniture & Fixtures 135 Building 140 Land 145 Accumulated Depreciation - Equipment 150 Accumulated Depreciation - Furniture & Fixtures 155 Accumulated Depreciation - Building 160 Prepaid Rent 165 Prepaid Insurance 170 Organization Costs 175 Accumulated Amortization - Organization Costs 180 Timber Rights 185 Accumulated Depletion - Timber 200 Accounts Payable 205 Payroll Payable 210 Sales Tax Payable 215 Warranty Payable 220 Accrued Expenses 225 Accrued Income Tax 230 Deferred Revenue 235 Notes Payable - Current 240 Mortgages Payable - Current 245 Bonds Payable - Current 250 Notes Payable - Long Term 255 Mortgages Payable - Long Term 260 Bonds Payable - Long Term 300 Common Stock 305 Preferred Stock 310 Paid in Capital in Excess of Par - Common Stock 315 Paid in Capital in Excess of Par - Preferred Stock 320 Dividends 325 Retained Earnings 400 Sales - Merchandise 405 Sales - Services 410 Sales - Timber Revenue 415 Sales Returns 420 Sales Allowances 500 Beginning Inventory 505 Purchases 510 Purchase Discounts 515 Payroll - Manufacturing 520 Payroll - Taxes 525 Supplies Expense 530 Ending Inventory 535 Cost of Goods Sold 600 Advertising 605 Amortization Expense 610 Bank Service Charges 615 Commission Expense 620 Consulting 625 Depletion Expense 630 Depreciation Expense - Equipment 635 Depreciation Expense - Furniture & Fixtures 640 Depreciation Expense - Building 645 Entertainment 650 Insurance 655 Meals 660 Office Supplies 665 Payroll Expense 670 Payroll Taxes 675 Professional Fees 680 Rent Expense 685 Repairs & Maintenance 690 Supplies Expense 695 Travel Expense 700 Utilities 900 Interest Expense 905 Interest Income 910 Dividend Income 915 Royalty Income 950 Income Tax Expense