$1.$ Comparative, Classified Balance Sheets as of $12/31/2013$ and $12/31/2014.$

$2.$ Income Statement for the Year ended $12/31/2014.$

$3.$ Show all Journal Entries and T$-$accounts used to complete the financial statements.

$2013$ Transactions:

$1.7/1/13$: Al issues $8,000$ shares of $$2$ par value Common Stock in return for $$80,000$ in cash.

$2.8/1/13$: Al pays for an insurance policy that covers the period $2/1/147/31/14.$ Al pays the entire $$4,200$ amount in cash on $8/1/13.$

$3.10/1/13$: Al signs a contract to rent a building for $12$ months at a rate of $$1,200$ per month. The contract begins on $3/1/14.$ Al makes an initial payment of $$6,000$ and will pay the remainder of the rental fees at the end of the contract $(2/28/15).$

$4.10/1/13$: Al signs an employment agreement with Jane Smith. Ms$.$ Smith will begin working on $1/1/14,$ earning $$180,000$ per year. She will be paid on the $15$th of each month for the prior month$$s work $($e$.$g$.,$ her first paycheck will be issued on February $15$th$,$ as payment for January$$s services$).[$Assume all of these payments are made $$ they will not be shown explicitly in this list of transactions.$]$

$5.11/1/13$: Al buys $($and receives$)4,800$ cases of merchandise inventory for $$252,000$ on account.

$6.11/15/13$: Al receives $$45,000$ in cash from a customer for goods to be delivered in February $2014.$

$2014$ Transactions:

$1.1/1/14$: Al buys $$6,000$ of office supplies on account.

$2.1/10/14$: Al pays $$18,000$ cash to the supplier from the $11/1/13$ transaction.

$3.1/15/14$: Al signs a contract to rent a delivery van for $$250/$month$.$ The rental period is $12$ months and begins on $2/1/14.$ Payments for each month are made on the first of the month, starting on $2/1/14.[$Assume all of these payments are made $$ they will not be shown explicitly in this list of transactions.$]$

$4.4/1/14$: Al returns $$1,000$ of office supplies to its supplier and pays the remainder of the balance of the $1/1/14$ purchase in cash.

$5.5/1/14$: Al buys a piece of land for $$45,000.$ This amount includes $$6,000$ of legal fees to execute the contract. Al paid $$45,000$ in cash.

$6.6/1/14$: The firm pays $$3,000$ in cash for advertising expenses, all of which relate to ads running in $2014.$

$7.7/1/14$: Al arranges to buy a corporate jet for $$200,000$ and will take delivery in June of $2015.$ No cash is exchanged.

$8.8/1/14$: Al borrows $$40,000$ from the bank. This loan is in the form of a note that is due in two years $(7/31/16)$ and bears interest at the rate of $6\%$ per year. All of the interest and principal is due at the end of the note period.

$9.10/1/14$: Al receives a $$10,000$ deposit from a customer for goods to be delivered in February $2015.$

Other Information:

$10.$ The firm delivers goods with a sales price of $$375,000$ to customers during $2014,$ as contracted. This amount includes the goods ordered on $11/15/2013.$ The remaining goods were sold on account. The firm collects $$257,000$ of these sales during $2014$ and expects to fully collect the remaining amount.

$11.$ At $12/31/14,$ the firm takes a physical inventory and finds the following items on hand:

$$ $$1,500$ of the office supplies purchased on $1/1/14.$

$$ $$162,000$ of the inventory purchased on $11/1/13$

$12.$ On December $31,2014,$ the Board of Directors will declare a dividend payable to shareholders equal to $40\%$ of the firm$$s Net Income for $2014.$ The dividend will be paid in $2015.$ If the firm has a Net Loss for the period, the Board of Directors will not declare a dividend.

$13.$ The firm pays taxes at a $35\%$ tax rate. If taxes are owed, they will be paid in January $2015.$ If the firm has a pre$-$tax loss, assume that there are no taxes paid nor tax refunds received. $($In other words, if there is a pre$-$tax loss, assume a $0\%$ tax rate.$)$