1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. On October 1, 2023, Jennifer Davis invested $172,500 to start the business. Davis is the only owner. She was issued 10 common shares. On October 1, Davis Tools borrowed $223,000 from a venture capitalist (a lender who specializes in start-up companies) and signed a note payable. On October 1, the company rented a building. The rental agreement was a two-year contract requiring quarterly rental payments (every three months) of $11,000, payable in advance. The first payment was made on October 1, 2023 (covering the period from October 1 to December 31). Thereafter, payments were due on December 31, March 31, June 30, and September 30 for each three-month period that followed. All of the rental payments were made as specified in the agreement. On October 1, the company purchased equipment costing $272,800 for cash. Initial inventory was purchased for $87,000 cash. Additional purchases of inventory during the year totalled $576,500, all on account. Sales during the year totalled $866,500, of which $779,850 were on account. Collections from customers on account totalled $654,000. Payments to suppliers on account totalled $510,000. The cost of the inventory that was sold during the year was $554,500. Selling and administrative expenses totalled $82,900 for the year. Of this amount, $4,200 was unpaid at year end. Interest on the note payable from the venture capitalist was paid at year end (September 30, 2024). The interest rate on the note is 10%. In addition. $24.200 of the note principal was repaid at that time. Q Search M