solve it

Cash $20,000
Accounts Receivable 30,000
Inventory (8 Struthers @ $5,000 each) 40,000
Prepaid Insurance 1,000
Vehicles 100,000
Accumulated Depreciation-Vehicles 36,000
Equipment 300,000
Accumulated Depreciation-Equipment 150,000
Security D eposits 3,000
Accounts Payable 12,000
Taxes Payable 10,000
Wages Payable 5,000
Rent Payable 2,000
Common Stock (5,000 shares) 50,000
Retained Earnings 229,000

During 2003 the following transactions occurred:

Jan 1, Paid all accounts payable for merchandise.
Jan 1, Received all accounts receivable.
Jan 1, Borrowed $120,000 from bank. Note is repayable $20,000 per year plus
interest. The first payment is due on Dec 31, 2003. The interest rate is 10%.
Feb 1, Bought 10 more Struthers at $6,000 each, 40% down and the rest payable in one year.
Mar 1, Paid 2002 taxes payable.
Apr 1, Paid $4,000 for utilities.
May 1, Issued 2,000 shares of common stock for $20,000.
June 1, Sold 6 Struthers for $20,000 each. Customers pay 70% down and the rest payable in one year.
July 1, Purchased 4 Struthers at $7,000 each – same terms.
Aug 1, Paid dividend of $2.00 per share.
Sept 1, Sold 5 Struthers for $22,000 each – same terms.
Nov 1, Purchased two year insurance policy for $3,000.
Dec 1, Exchanged 5,000 shares of common stock for a piece of land worth
$50,000.
Dec 20, Received $20,000 from accounts receivable.
Dec 31, Paid first payment on Note Payable-Bank.

· During the year the company paid wages of $ 40,000 in cash. At the end of the year they owed wages of $2,000.
During the year they paid 14 months rent at $2,000 per month.· Tax rate is 30%. 2003 taxes are to be paid in 2004.
· The vehicles were all purchased on the same date and have a total salvage value of $10,000 and are expected to have a useful life of 5 years.
· All equipment is expected to last 20 years and have no salvage value.
· The company uses FIFO when accounting for inventory.
· At December 31, 2003 the stock was selling for $50 per share.

Prepare all journal entries necessary to properly reflect the financial activity for the year. Post T-Accounts and prepare financial statements for 2003.