1. Megatron electronics is a company that is doing on resale of electronic parts and accessories. 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 $650000 .

Day 2. Rented an office with monthly fee $6000 .

Day 3. Hired employees: Salaries $10000 .

Day 8. Purchased 1000 units of microprocessors by the price $70 per unit.

Day 10. Obtained a small truck for transportation needs $7000.

Day 12. Purchased additionally 1200 video graphic adapters by the price $150 per unit.

Day 16. By the decision of procurement and sales departments additionally purchased 1200 units of microprocessors by the price $90 per unit and 800 video graphic adapters by the price $120 .

Day 20. The company realized 2000 units of microprocessors and 1600 units of video graphic adapters with 60% trade surcharge.

Day 24. The company received bill for utilities $1000 .

Day 30. The company paid for all expenses

Required:

a) Prepare journal entries (7 points)

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

c) Prepare Balance sheet (5 points)

2.Which operations should you add to operational and why? (2 points)

Please explain all steps detally.How and with the help of which rule did you solve this exercise.Also answer to all questions.