Complete the accounting cycle for the first-quarter

Question

Problem - Cody, Alberto, and Patricia established CAP Company, an office supplies wholesales business, on January of 2012. CAP completed the following transactions during the first quarter, 2012.

Jan. 1	Cody, Alberto, and Patricia registered to State of Texas for the issuance 20,000 common stocks with par value @10 per share as a start-up of office supplies business and a business bank account was established for CAP operations.
Jan. 1	Purchased a warehouse $315,000 paying cash $50,000 and on account $265,000.
Jan. 1	Paid annual insurance premium $3,600 for the warehouse.
Jan. 1	Purchased supplies 3,000 units @$20 on account with terms, FOB shipping point, 2/10, n/30 from Salinas Co.
Jan. 2	Paid freight of $500 from purchase of supplies.
Jan. 5	Sold supplies 1,000 units @$40 in cash and 1,000 units @$45 on account with terms, 2/10, n/30 to Underwood Co.
Jan. 8	Returned defeated supplies 400 units to Salinas Co.
Jan. 10	Paid Salinas Co for the purchase of  Jan. 1
Jan. 15	Received cash payment from Underwood Co
Jan. 28	Purchased supplies 2,000 units @$25 on account with terms, FOB destination point, 2/10, n/30 from Salina Co; paid freight of $350 from purchase of supplies
Jan. 31	Paid $15,000 cash and issued 5 nonnegotiable notes, @$50,000, 8%, to the real estate for the payment of warehouse.  The nonnegotiable notes will be paid @50,000 annually in next 5 years.
Jan. 31	Accrual employee salary $25,000
Jan. 31	Accrual electricity bill $1,200, Internet & phone bill $800
Feb. 1	Purchased office equipment $12,000 on account.
Feb. 5	Sold supplies 500 units @$38 to Jaggi Co in cash
Feb. 5	Paid employee wages, electricity bill, internet & phone bill
Feb. 8	Paid Salina Co. for the purchase of Jan. 28.
Feb. 15	Paid $3,000 annual rent for a parking lot.
Feb. 18	Sold supplies 800 units @$45 on account with terms, FOB shipping point, 2/10, n/30 to Underwood Co.
Feb. 28	Received cash payment from Underwood at discount price @42 due to defeated quality
Feb. 28	Accrual employee salary $23,000, electricity bill $1,500, and internet & phone bill $750
Mar.1	Sold supplies 1,000 units @$42 on account with terms, FOB shipping point, 2/10, n/30 to Julio Ltd.
Mar. 1	Purchased a truck for $25,000, paying $5,000 cash and giving a note payable for the reminder
Mar. 3	Purchased supplies 2,000 @$18 on account with terms, FOB destination point, 2/10, n/30 from Salina Co; paid freight of $400 from purchase of supplies
Mar. 5	Paid employee salary, electricity bill, internet &phone bills
Mar. 10	Received $20,580 from Julio Ltd for a half of payment.
Mar. 13	Paid Salina Co. for the Purchase of Mar. 3 with new negotiated price @$15
Mar. 18	Sold supplies 1,000 units @45 with term, n/30, to Jaggi Co.
Mar. 25	Received payment $9,000 from Julio Co.
Mar. 28	Sold supplies 500 units @42 with terms, n/30, to Underwood Co.
Mar. 29	Purchased supplies 3,000 units@$24 from Alvarez Co., FOB shipping point, with term n/30
Mar. 30	Sold supplies 1,200 units @48 to Carla Co. with terms 2/10, n/30
Mar. 31	Accrual employee salary $28,000, electricity bill$1,700, and internet &phone bill $800
Mar. 31	Paid cash dividend $5,000 to shareholders

Requirements: Complete the Accounting cycle for the first-quarter operation of CAP Co from journalizing the journal entries to closing entries.

Additional information: (a) CAP Co. use First-in, First-out Perpetual Inventory system to record its inventory; (b) The warehouse is estimated to be used for 20 years with salvage value $15,000. CAP Co. uses straight-line method to recognize the depreciation of warehouse; (c) The truck is estimated to be used for 5 years with no salvage value. CAP Co. uses units-of-production to recognize the depreciation of truck. CAP estimates the truck to be used 100,000 units of production in 5 years. The truck is used for 3,500 units of merchandise transportation in the first quarter; (d) The office equipment is estimated to be used for 5 years with no salvage value. CAP uses straight-line method to recognize the depreciation of the office equipment; (e) CAP Co. estimates bad debt expense at 2% of net sales.