1. Record entries from the transaction and event list provided below in proper journal entry format. NOTE: You are recording entries for the fiscal year 2019 (Jan 1 Dec 31) and make adjusting entries at year-end. This list must be chronologically organized. Make sure that I can easily identify the journal entry or adjusting journal entry with the related transaction/event. Show your work if the entry requires you to make a calculation (i.e. depreciation, interest expense, etc.).

January

1. On January 1st, the company issued 280,000 additional shares (par of $.25) to raise capital for the New Year. Assume no change in price from Dec 31, 2018.

2. Purchased a truck for $140,000 cash on the 1st of January. The truck will be depreciated over an 8 year period. You decide to use the 200% declining-balance depreciation method because it is determined that the truck will be more productive when it is newer. The truck has an estimated salvage value of $8,000.

   [Adjusting Entry Required]

3. On January 1st, a 5 year, $130,000 long-term note payable was taken from a local bank.

4. On January 5th, you receive payment from interest earned and accrued in 2018.

5. On January 22nd you purchased 8,500 additional units of inventory at a cost of $63.00 per unit. You paid 45% in cash and purchased the remainder on account.

6. On January 25th you pay $112,000 cash toward your accounts payable.

7. Purchased new office equipment for $230,000 with cash from California Furniture on January 1, 2019. The new furniture will be depreciated over a ten-year period on a straight- line basis. The cabinet has an estimated salvage value of $15,000. [Adjusting Entry Required]

February

8. Paid cash for $160,000 worth of radio advertising on February 1st. This gives you radio advertising until January 31st, 2020. [Adjusting Entry Required]

9. February 13th you collect $365,000 of account payments from customers.