Spreadsheet analysis of transactions and preparation of income statement and balance sheet. Refer to the information tor Moulton Corporation as of December 31, Year 12 in Problem 29 of Chapter 2. Moulton Corporation opened for business on January 1. Year 13. It uses the accrual basis of accounting. Transactions and events during Year 13 were as follows:

(1) During Year 13: Purchased inventory on account costing $1,100,000 from various suppliers.

(2) During Year 13: Sold merchandise to customers for $2,000,000 on account.

(3) During Year 13: The cost of merchandise sold to customers totaled $1,200,000.

(4) During Year 13: Collected $1,400,000 from customers for sales made previously on account.

(5) During Year 13: Paid merchandise suppliers $950,000 for purchases made previously on account.

(6) During Year 13: Paid various suppliers of selling and administrative services $625,000.

The firm consumed all of the benefits of these services during Year 13.

(7) June 30. Year 13: Repaid the note payable to a supplier with interest (see transaction (7)

in Problem 2.29).

(8) December 31, Year 13: Recognized interest on the long-term bank loan (see transaction (6) in Problem 2.29).

(9) December 31, Year 13: Recognized insurance expense for Year 13 (see transaction (5) in Problem 2.29).

(10) December 31, Year 13: Recognized depreciation expense for Year 13 (see transactions

(2) and (7) of Problem 2.29).

(11) December 31, Year 13: Recognize income tax expense and income tax payable for Year 13. The income tax rate is 40 percent. Assume that income taxes for Year 13 are payable by March 15, Year 14.

a. Using the transactions spreadsheet template available with this book, enter the balances in balance sheet accounts on January 1, Year 13 (see Problem 29 in Chapter 2) and the effects of the 1 1 transactions above. Be sure that you enter the dual effects of each transaction so that you maintain the balance sheet equality of assets with liabilities and shareholders' equity.

b. Prepare an income statement for Year 13.

c. Prepare a comparative balance sheet as of December 3 1 , Year 1 2, and December 3 1 , Year 13.