On January 1, 2014, James and Jack formed a partnership.

The partners agreed to

invest equal amounts of capital 3,000,000.
Jan 2 Purchased merchandise on account totaling 54,000 FOB destination, freight
prepaid; terms 2/10, n/30.
Jan 9 Acquired land with a fair market value of 1,300,000.
Jan 11
Jan 19

Paid the amount due from the Jan 2 transaction.

Acquired supplies for cash, 81,000.

Jan 24
Purchased merchandise on account 400,000 FOB shipping point; terms
2/10, n/30. Paid LBC
express 12,000 for freight charges.
Feb 12 Sold merchandise on account to Nadine, 43,000 FOB shipping point; terms
3/10, n/60.
Feb 23 Paid the amount due on Jan 24 transaction.
Mar 7 Cash sales, 140,000.
Mar 11

Received partial payment from Nadine, 20,000.

Mar 13
Purchased merchandise on account 200,000 FOB destination, freight
prepaid; terms 2/10, n/30.
Apr 3 Acquired furnitures and fixtures, 21,000.
Apr 12

Paid the amount due on March 13 transaction.

Apr 19

Acquired Building for 2,000,000.

Apr 20

Received the remaining balance from Nadine.

Apr 24
Purchased merchandise totalling 350,000 FOB shipping point, freight
prepaid; terms 2/10, n/30. Transportation costs amounted to 17,000.
April 26 Sold merchandise on account to Yassi, 240,000 FOB destination, freight
collect; terms 2/10,
n/30. Transportation cost amounted to 14,000.
May 1

Paid the amount due on April 24 transaction.

May 3

Collection from April 26 transaction.

May 5 Purchased merchandise on account 200,000 FOB destination, freight prepaid;

terms 2/10, n/60.
May 13 Cash sales, 450,000.
June 7
June 10

Acquired supplies for 48,000.

Acquired furnitures and fixtures for 18,000.

June 17
Sold merchandise totaling 270,000 to Reid Company FOB destination,
freight prepaid; terms 2/10, n/60. Transportation costs amounted to 13,000.
June 29

Partial collection from June 17 transaction, 170,000.

July 2 Paid cash on May 5 transaction.

July 8 James invested cash of 1,800,000.
July 16

Paid for advertising for the month of July, 10,000.

July 17

Paid miscellaneous expense, 9,000.

July 20

Received payment, 100,000 balance from Reid Company.

July 21
James contributed land for 2,300,000 with 300,000 mortgage to be
assumed by the partnership.
Aug 21 Cash sales for 50,000.
Aug 29

Jack invested cash of 900,000.

Sept 5Sold merchandise on account to Paras Company for 300,000 FOB shipping
point; terms 2/10, n/30.
Sept 10

Received returns from Paras Company, 15,000.

Sept 12
Received payment from the Paras Company less returns and
allowances.
Sept 22

Acquired equipment on account for 700,000.

Sept 26
Sold merchandise on account, FOB shipping point, freight collect
48,000 terms 2/10, n/30.
Oct 8 Sold Merchandise on account to Lustre Company, 200,000 FOB destination;
terms 2/10, n/30.
Oct 11

Acquired supplies for 11,000.

Oct 14

Paid LBC Express 7,000 for freight charges on the sale of Oct 8.

Oct 15

Received payment on Sept 26 transaction, 48,000.

Oct 16

Received payment from Lustre Company less discounts.

Nov 4 Purchased merchandise on account to Gonzales Company 500,000 FOB

destination; terms 2/10, n/60.
Nov 13
Sold merchandise on account to Pressman Company 400,000 FOB
shipping point; terms 2/10, n/60.
Nov 17
43,000.

Returned merchandise purchased from Gonzales Company on Nov 4,

Nov 28

Cash sales, 70,000.

Dec 4 Paid Gonzales Company for the merchandise purchase on Nov 4 less returns
and allowances.
Dec 8 Purchased merchandise totaling 170,000 FOB destination, freight prepaid;
terms 2/10, n/30.
Dec 15
Sold merchandise to Enrique Company 250,000 FOB shipping point,
freight collect; terms 2/10, n/30.
Dec 27

Cash sales, 143,000.

*James and Jack agreed to divide profits and losses equally (50/50) every quarter.
AJE Q1 -Suppplies on hand amounted to 71,000.
AJE Q2 - Depreciation on the building, 500,000.
Depreciation on furnitures and fixtures 9,750.
AJE Q3 - Depreciation on the equipment, 175,000.
AJE Q4 - Supplies on hand, 90,000.
*(PPE must be depreciated every quarter)*