1. Begin by entering the beginning balances in the General Ledger accounts from the Beginning Balance Sheet: all accounts have normal balances. Common Stock has 225,000 shares issued and outstanding. 2. Additional information: Company uses a perpetual inventory system (discounts and freight are recorded in the inventory account). Suppliers offer a 2% discount; Company does not offer discounts to customers. No adjustment for inventory is needed. See picture below for assistance on journal entries. Company Project Balance Sheet August 31, 20XX 4 5 6 Cash $162,000 Accounts Payable $15,300 7 Accounts Receivable 13,250 Wages Payable 1,200 8 Inventory 47,000 Common Stock 225,000 Fixed Assets ($6,000 per year 60,000 Retained Earnings 34,750 9 depreciation) 10 Accum. Depr.(cr. Bal) (6,000) 11 Total Liabilities & Total Assets $276.250 $276.250 12 Equity 13 14 15 All accounts have normal balances in the General Ledger 16