(1) Make journal entries for 2021 and (2) Prepare the balance sheet for 2021 for the following:

Jan 1) Peloton began operation in 2021 and sold $50,000,000 common stocks (1,000,000 shares @ $50 per share). Feb 1) Purchased 10,000 bikes from a manufacturer for $1,500 each, on account.

May 1) Paid off a half of the account payable to the manufacture.

Jul 1) Repurchased 500,000 shares of common stocks @$80 and kept as treasury stocks.

Aug 1) Sold 1,500 bike packages. The package is priced at $2,000 for a bike (paid immediately in cash) plus membership fee for workout streaming at $70 per month for one year. Membership fees are due at the end of each month for 1-year. A stand-alone price for the bike is $2,700 and a membership-only fee is $100 per month. Bikes were delivered immediately. The cost for Peloton to provide the streaming service is $2 per month per member, paid in cash.

Oct 1) Sold 3,000 stand-alone 1-year memberships. The membership fee $100 is due at the end of each month.Oct 15) Sold 2,000 stand-alone bikes on account. Delivery was delayed till Feb 2022.

Nov 15) Early November, Peloton announced the introduction of membership PLUS starting service from Nov 15. It is a flexible version of the stand-alone membership program costing @150 per month, renewable on a month basis (without a one-year contract). For members signed up before 15st of each month, a monthly fee for the month is charged on 14th of month. For example, for members signed up before Nov 15, the subscription is effective from Nov 15 to Dec 14 and fee is charged on Dec 14. For cancelling members, the service is effective till the nearest 14th and the fee will charged for the last time on 14th. By Nov 14, 5,000 members signed up for membership PLUS.

Dec 14) Charged the membership PLUS fees.

Dec 15) By Dec 14, 4,000 members renewed membership plus and 2,000 newly signed up (i.e., the total number of PLUS members for the Dec 15-Jan 14 cycle has increased to 6,000.)

Dec 31) Income tax expense was 25% of income from operation. The tax payment to IRS, which is assumed to be the same as income tax expense, is recorded as income tax payable at the end of the year and is due next Feb.