On January 2, Dan Bailey started the BaileyCompany. In January, Bailey Company did the following things:

(a) It received $5,000 cash from Dan Bailey as its capital.

(b) It borrowed $10,000 from a bank, giving a note therefor.

(c) It purchased $4,000 of inventory for cash.

(d) It sold $2,000 of its inventory for $6,000 to a customer, who paid $3,500 cash and agreed to pay $2,500 within 30 days.

(e) It purchased an auto for $7,000. It paid $2,000 down and gave a note to the automobile dealer for the remaining $5,000.

(f) Bailey withdrew $1,000 cash for her personal use.
(g) Bailey was offered $10,000 for her equity in the business, but she refused the offer.

On a separate piece of paper, prepare a rough draft of a balance sheet for Bailey Company as of the close of business January 31, and an income statement for January.

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Total. BAILEY COMPANY Balance Sheet as of Total. BAILEY COMPANY Income Statement for. Income and