The Boone Company is a retail company that began operations on October 1, 2018, when it incorporated in the state of North Carolina. The Boone Company is authorized to issue 150,000 shares of $1 par value common stock and 45,000 shares of 3%, $30 par value preferred stock. The company sells a product that includes one-year warranty and records estimated warranty payable each month. Customers are charged a 7% state sales tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly salary on the last day of the month. Following is the chart of accounts for The Boone Company. As a new business, all beginning balances are $0. (Click the icon to view the chart of accounts.) The Boone Company completed the following transactions during the last quarter of 2018, its first year of operations: (Click the icon to view the transactions.) hts. More Info Oct. 1 Oct. 1 Oct. 1 Oct. 3 Oct. 15 Issued 36,000 shares of $1 par value common stock for cash of $16 per share. Issued a $320,000, 10-year, 5% mortgage payable for land with an existing store building. Mortgage payments of $4,000 are due on the first day of each month, beginning November 1. The assets had the following market values: Land, $200,000; Building, $120,000. Issued a one-year, 14% note payable for $14,000 for store fixtures. The principal and interest are due October 1, 2019. Purchased merchandise inventory on account from Superior for $130,000, terms n/30. Paid $150 for utilities. Recorded cash sales for the month of $150,000 plus sales tax of 7%. The cost of the goods sold was $90,000 and estimated warranty payable was 9%. Recorded October payroll and paid employees. Accrued employer payroll taxes for October. Paid the first mortgage payment. Paid Superior for the merchandise inventory purchased on October 3. Purchased merchandise inventory on account from Superior for $140,000, terms n/30. Purchased 900 shares of treasury stock for $16 per share. Oct. 31 Oct. 31 Oct. 31 Nov. 1 Nov. 3 Nov. 10 Nov. 12 Check Answer The Boone Company is a retail company that began operations on October 1, 2018, when it incorporated in the state of North Carolina. The Boone Company is authorized to issue 150,000 shares of $1 par value common stock and 45,000 shares of 3%, $30 par value preferred stock. The company sells a product that includes a one-year warranty and records estimated warranty payable each month. Customers are charged a 7% state sales tax. The company uses a perpetual inventory system. There are three employees that are paid a monthly salary on the last day of the month. Nov. 16: Paid $4,000 to satisfy warranty claims. Date Accounts Debit Credit Nov. 16 Estimated Warranty Payable 4,000 Cash 4,000 1 1 Nov. 17: Declared cash dividends of $1 per outstanding share of common stock. 1 Date Accounts Debit Credit 0 Nov. 17 Cash Dividends Dividends PayableCommon