1.a.Prepare a balance sheet and(40points)

b.an income statement for 2021 by using the information belowand by finding the numbers in question marks. (25points)

Financial Information for Techna Companyfor 2021

Accounts payable $19,282Property and equipment2,954

Accounts receivable 3,361Research and development expenses1,333

Cash 5,263Retained earnings 19,622

Contributed capital 8,210Sales revenues 36,537

Cost of sales23,397Selling, general, and administrative exp.4.149

Income tax expense 2,280

Inventories 455Total assets ?

Investments28,729Total expenses ?

Net income 5,704Total liabilities ?

Notes payable 6,737Total stockholders equity ?

Other assets13.089

Other revenues 326Total revenues ?

Pretax income 7,984Total liabilities and stockholders equity ?

Be careful. Cost of Sales is an expense. Income tax expense is not included into the total expenses.

Income tax expense comes after pretax income.

2.1.Write journal entries belowfor Startrech Company for 2020.(7points each)

a.Issued 500 shares of stock to each of the three investors in exchange for$9,000cash.

b.Acquired rakes and other hand tools (equipment) with a list price of $690 for$600; paid the hardware

store $200cashand signed a three-monthnotefor the balance.

c.Purchased four acres of land for the future site of a storage garage; paidcash, $5,000.

d.Received the mowers and edgers(equipment)that had been ordered, signing anoteto pay XYZ Lawn Supply

in full in 30 days.

e.Sold for $1,250 one acre of land to the city for a park. Accepted anotefrom the city for payment

by the end of the month.