Kenna 109

Please record the following transactions that summarizes K 109's first month in business, Jan. 1998. Prepare the appropriate trial balances, close the books and draft the principal financial statements.

1. K 109 issues 100 shares of common stock at $50 per share.Jan. 1

2. K 109 borrows $10,000 for 2 years @ 10% interest per annum. Jan. 1

3. K 109 buys $4,000 of inventory on account. Jan. 4

4. K 109 sells half of the inventory for $5,000.  Customers pay $1,000 in cash. Jan. 8

5. Customers pay an additional $3,000 on account.  Jan. 23

6. K 109 pays $2,000 on its open account payable. Jan. 24

7. K 109 buys furniture for $8,000 on account. Depreciation will be charged for the full month. K 109 uses straight-line depreciation over 48 months. Jan. 25

8. K 109 prepays 2 years rent of $12,000. Jan. 29

9. K 109 pays other operating expenses of $1,000. Jan. 31