1. (6 pts) You have always wanted to be your own boss. You invest $500K of your savings in your new business on the first day of the month. You buy $350K worth of inventory for cash and buy another $60K of inventory on credit. You sell your entire inventory in the first month for $490K. When you sold your inventory, you received $80K in cash and the rest was on credit ($410K). Of the $410K owed you, customers who used credit paid $100K during the month. Of the $60K you owe for inventory, you paid $35K of it during the month. Rent for your building is $2500/month which you prepaid for the year at the start of the month. Write an account of the financial transactions of your business for its first month of operation on the Balance Sheet on the second page. UP PALILILULUJ Luuau IGA LILILLIM Assets Liabilities & Owner's Equity Transactions Cash Accounts Receivable Inventory Prepaid Rent Accounts Payable Paid in Capital Retained Earnin Initial Investment Acquire Inventory for Cash Acquire Inventory with Credit Sales for Cash and Credit Cost of Goods Sold Collected from Credit Customers Pay Creditors Prepaid Rent Recognition of 1 months' Rent Balance at end of month Grand Totals of Assets and Liabilities & Owner's Equity (Hint: Double Entry)