(Similar to Problem 2-23) The following account balances are shown on November 30, 1999, for the Clever Bookstore:

Cash $ 8,000 Accounts payable $ 4,000 Accounts receivable 9,000 Salaries payable 2,000 Inventory 60,000 Notes payable 35,000 Supplies 3,000 J. Clever, capital 39,000 Total $80,000 Total $80,000 The following transactions occurred during December.

1. Paid workers the $2,000 owed them on November 30.

2. Made sales totaling $40,000. One-half of the sales were for cash. The other half were on account. The cost of goods sold was $25,000.

3. Purchased inventory on account, $15,000.

4. Collected in cash $22,000 of receivables.

5. Used supplies totaling $800.

6. Paid accounts payable of $12,000.

7. Paid December’s interest on the note payable in the amount of $300.

Required

a. Prepare the journal entries to record these transactions.

b. Prepare any necessary adjusting entries.

c. Post all journal entries to T-accounts.

d. Prepare a trial balance.

e. Prepare a balance sheet for Clever Bookstore as of December 31, 1999.