Additional Information (for all entries; please see the posted Excel spreadsheet

Additional Information (for all entries; please see the posted Excel spreadsheet with a few journal entries already provided):1. Sales for 2011 are $310000. All sales are on credit.2. Gross Margin ratio is 40 percent3. Accounts Receivable: i. $190000 of the accounts receivable is paid by the end of the year (the remaining balance remains on the balance sheet). ii. $4000 of A/R is written off during the year. iii. 5% of Accounts Receivable (after write-off and collections) is considered to be uncollectible.4. Inventory: i. Inventory purchases is $180000 all on credit. ii. All accounts payable is from inventory purchases; all but $12000 of inventory purchased is paid by the end of the year.5. Additional equipment is purchased on 4/1/11 for $20000 cash. All equipment when new including the new purchase has/had a five year life no salvage value and is depreciated using the straight-line method.6. The building depreciates at $5000 per year.7. Half of the marketable securities were sold for $1200. The FMV and cost of the other half of the securities are the same so no adjustment to FMV is required.8. Salaries are $2200 per month (12 months of salaries expense must be booked). It is expected that one-half month will be owed on 12/31/11 because of when payday falls (therefore 11.5 months of salaries have been paid and month is still owed to the employees at year end).9. $55000 in cash is borrowed on 9/30/11 by issuing a Note Payable. Interest is 8% per year.10. The bonds were sold at face value last December and pay interest on Dec. 31 2011.11. 10000 additional shares of stock were sold for $3 a share.12. Insurance costing $18000 was purchased on 6/1/11 (the same time in which the policy purchased in 2010 expired. The new policy was for 12 months).13. On Dec. 31 1000 shares of stock are repurchased from the market at $2.90/share (treasury stock).14. The tax rate is 30 percent. Income taxes for the current year are due and therefore paid during the first two months of the next year (you will have complete an entry to pay the 2010 taxes however the 2011 taxes will not be paid until the end of January 2012).15. Dividends of $3000 were paid during 2011.16. The unearned revenue has been earned during the year (classified as other revenue on the multi-step income stmt.).