The following transactions apply to Kenyon Co. for 2011, its first year of operations.
1. Issued \(\$ 80,000\) of common stock for cash.
2. Provided \(\$ 110,000\) of services on account.
3. Collected \(\$ 92,000\) cash from accounts receivable.
4. Loaned \(\$ 20,000\) to Harpst Co. on November 30, 2011. The note had a one-year term to maturity and a 6 percent interest rate.
5. Paid \(\$ 24,000\) of salaries expense for the year.
6. Paid a \(\$ 1,000\) dividend to the stockholders.
7. Recorded the accrued interest on December 31, 2011 (see item 4).
8. Determined that \(\$ 840\) of accounts receivable were uncollectible.
Required

a. Record the above transactions in general journal form.

b. Post the entries to T-accounts.

c. Prepare the income statement, balance sheet, and statement of cash flows for 2011.

d. Show the effects of the above transactions in a horizontal statements model like the one shown below.

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Assets = Liab. + Equity Rev. - Exp. = Net Inc. Cash Flows Event Cash Accts. Rec. + Notes Rec. + Int. Rec. = Com. Stk. Ret. Earn.