1. Babboo Industries is a company that is doing on resale of toys. So it is decided to open a representation in our state. So below are the data you need for further operations.

Day 1. Established a company with authorized capital $350000 .

Day.2 Rented an office with monthly fee $2000 .

Day 3. Hired employees: Salaries - $14000 .

Day 8. Purchased 1000 units kid toys by the price $70 per unit.

Day 10. Obtained a small truck for transportation needs $9000 .

Day 12. Purchased additionally 800 units of kid toys by the price $100 per unit and 1200 dolls by the price $150 per unit.

Day 16. By the decision of procurement and sales departments additionally purchased 1200 units of kid toys by the price $90 per unit and 800 dolls by the price $120 per unit.

Day 20. The company realized 2000 units of kid toys and 1500 units of dolls with 65% trade surcharge.

Day 24. The company received bill for utilities $1200 .

Required:

a) Prepare journal entries (7 points)

b) Prepare Income statement from the results of transactions (5 points)

c) Prepare Balance sheet (5 points)

Please explain all steps detally.Explain to me how and with the help of which rule did you solve this exercise?Answer all questions.