The following transactions apply to Artesia Co. for 2011, its first year of operations.

1. Received \(\$ 40,000\) cash from the issue of a short-term note with a 5 percent interest rate and a one-year maturity. The note was made on April 1, 2011.

2. Received \(\$ 120,000\) cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent.

3. Paid \(\$ 72,000\) cash for other operating expenses during the year.

4. Paid the sales tax due on \(\$ 100,000\) of the service revenue for the year. Sales tax on the balance of the revenue is not due until 2012.

5. Recognized the accrued interest at December 31, 2011.

The following transactions apply to Artesia Co. for 2012.

1. Paid the balance of the sales tax due for 2011 .

2. Received \(\$ 145,000\) cash plus applicable sales tax from performing services. The services are subject to a sales tax rate of 6 percent.

3. Repaid the principal of the note and applicable interest on April 1, 2012.

4. Paid \(\$ 85,000\) of other operating expenses during the year.

5. Paid the sales tax due on \(\$ 120,000\) of the service revenue. The sales tax on the balance of the revenue is not due until 2013.

Required

a. Record the 2011 transactions in general journal form.

b. Post the transactions to T-accounts.

c. Prepare a balance sheet, statement of changes in stockholders' equity, income statement, and statement of cash flows for 2011.

d. Prepare the closing entries and post them to the T-accounts.

e. Prepare a post-closing trial balance.

f. Repeat Requirements \(a\) through \(e\) for 2012 .