Record entries from the transaction and event list provided below in proper journal entry format for the month of January. All interest rates included in the transaction list are stated at an annual rate.

January

1. On January 1^st, The Board of Directors issued 250,000 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 $260,000 cash on the 1^st 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 $25,000.

[Adjusting Entry Required]

3. Purchased new office equipment for $92,000 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 $4,000.

[Adjusting Entry Required]

4. On January 1^st, a 5 year, $145,000 long-term note payable was taken from a local bank.

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

6. On January 22^nd you purchased 8,500 additional units of inventory at a cost of $76 per unit. You paid 45% in cash and purchased the remainder on account.

7. On January 25^th you pay $255,000 cash toward your accounts payable.