Keith ledger started a business, Gotham Games, in January 2016. The transactions that occurred in January are listed below.

1/1/16- Keith opened a bank account in the name of his new business, Gotham Games, by making a deposit of $75,000 cash in exchange for 10,000 shares of $0.01 par value common stock.

1/3/16- The company paid the first month rent in the amount of $1,900 for the store space he was using.

1/3/16- The company bought a computer and cash register from Fry's for $6000 and paid cash

1/3/16- The company purchased and installed store fixtures for $10,000. The company paid $7,500 in cash and signed a 1 year note for the balance that carries a 7.82% interest rate (hint: assume a 365 day year).

1/5/16- The company purchased various board games and collectible card games for $20,000 on trade credit.

1/20/16- The company paid cash for the initial electric bill, in the amount of $250.

1/24/16- The company collected $750 in cash on the credit sales recorded on 1/15.

1/29/16- The company paid $10,000 to its collectible card game vendors for purchases made earlier in the month.

1/31/16- The company recorded sales for the second half of the month. Cash sales were $5,000 and credit sales were $4,000. The cost of the inventory sold was $5,850.

Required:

a) Prepare journal entries for these transactions.

b) Post them to T-accounts.

c) Prepare the Trial Balance as of January 31,2016.

d) Calculate Gotham Games' gross margin for January 2016 ($ and %).