1. On Nov 30, 2016, the Zu company had the following account balance Balance $3,200 9,900 10,600 2,000 42,000 9,000 76,700 Balance $10,700 3,600 14,300 Account Cash Accounts receivable Inventories Other current assets Building and equipment (net) Land Account Account payable Long term liabilities Total liabilities Common stock 20,000 42,400 76,700 Retained earnings Total assets Total liabilities and equities Assume the company has a balance of $150,000 on revenue and S145,000 on expense account, as well as S5000 on dividend account. During the month of December, the Zu company entered into the following transactions Date Dec 1 Transaction Prepaid insurance for 12-month at $2,400 4Made cash sales of $3,000 at the cost of $2,000 7Purchased $2,400 of merchandise on credit. Paid $50 of related freight charge (expenses) Sold land for $7,800; the land has a cost S5,000 Made credit sale of S4,000 at the cost of $2,000 Purchased $1,250 of merchandise for cash Paid S1,200 of accounts payable Paid selling and administrative expenses in cash $1,500 Depreciation expense of $1,200 was recognized for Dec Purchased land at a cost of S6,000 made a $1,000 down payment and signed a 12%, 2-year note for the balance 11 14 18 20 22 31 31 1. 2. 3. Prepare general journal entries to record the preceding transactions Post to the general ledger accounts Prepare the income statement and balance sheet assuming the company is income tax exempt and all net income was retained in the business