T-account entries and balance sheet preparation. Soybel Corporation begins operations on January 1. During January it engages in the following transactions:

(1) Issues 20,000 shares of \(\$ 5\)-par value common stock for \(\$ 150,000\).

(2) Issues at face value for cash bonds with a face and maturity value of \(\$ 250,000\).

(3) Acquires land and a building costing \(\$ 300,000\). Issues a check for \(\$ 220,000\), with the remainder payable over 20 years. It assigns \(\$ 60,000\) to the land and \(\$ 240,000\) to the building.

(4) Acquires equipment with a gross invoice price of \(\$ 90,000\). After deducting a discount of 2 percent for immediate cash payment, the firm pays the net amount due.

(5) Acquires on account merchandise costing \(\$ 75,000\).

(6) Discovers that merchandise costing \(\$ 8,000\) is defective and returns it to the supplier. The firm has not yet made a payment to this supplier.

(7) Obtains an insurance policy for a one-year period beginning February 1. Pays the premium of \(\$ 3,200\) for the one-year period.

(8) Receives an order from a customer for \(\$ 2,500\) of merchandise to be delivered in February. The customer sends a check for \(\$ 900\) with the order.

(9) Pays merchandise suppliers in (5) \(\$ 64,000\) of the amounts due. The firm will pay the remaining suppliers in February.

a. Enter these transactions in T-accounts. Indicate whether each account is an asset, a liability, or a shareholders' equity item. Cross-reference each entry to the appropriate transaction number.

b. Prepare a balance sheet for Soybel Corporation as of January 31.