1) “Vitality inc” is a new corporation

Subject:BusinessPrice: Bought3

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1) “Vitality inc” is a new corporation. It started his operations on Jan 1st 2017. The following transactions occurred during the year :

· Sold common stock : 10,000 shares, 50$/share

· Purchased jogging pants (on credit). 10,000 pants, 35$/each

· Get a bank loan. 70,000, interest 7.85%, payable twice/year. Duration : 2.5 years

· Purchased jogging pants (on credit). 3,500 pants, 28$/each

· Sold 6,000 jogging pants (on credit), 90$/each (LIFO method)

· Payment related to bank loan (July 1st)

· Payment : Rent ($1,300), Salaries ($4,000), Publicity ($2,500)

· Sold 2,000 jogging pants (on credit), 82$/each (LIFO method)

· Prepare JE & F/S as of Dec.31st, 2017

 

2) Here are the 2018 transactions

· Payment related to bank loan (Jan 2nd)

· Purchased jogging pants (on credit). 2,000 pants, 15$/each

· Purchased jogging pants (on credit). 40,000 pants, 22$/each

· Payment related to bank loan (July 1st)

· Sold 35,000 jogging pants (on credit), 75$/each (LIFO method)

· Cash payment : Rent ($1,300), Salaries ($4,000), Publicity ($2,500)

· Sold 4,000 jogging pants (on credit), 80$/each (LIFO method)

· Prepare JE & F/S as of Dec.31st, 2018