1. On Nov 30, 2020, the Terp company had the following account balance Account Account Cash Accounts receivable Inventories Other current assets Building and equipment (net) Land Account payable Long term liabilities Total liabilities Balance $10,700 3,600 14,300 Balance $3,200 9,900 10,600 2,000 42,000 9,000 76,700 Common stock Retained earnings Total liabilities and equities 20,000 42,400 76,700 Total assets Assume the company has a balance of $150,000 on revenue and $145,000 on expense account, as well as $5000 on dividend account. During the month of December, the Terp company entered into the following transactions: Date Dec 1 4 7 11 14 18 20 22 31 31 Transaction Prepaid insurance for 12-month at $2,400 Made cash sales of $3,000 at the cost of $2,000 Purchased $2,400 of merchandise on credit. Paid $50 of related freight charge (expenses) Sold land for $7,800; the land has a cost $5,000 Made credit sale of $4,000 at the cost of $2,000 Purchased $1,250 of merchandise for cash Paid $1,200 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 $6,000 made a $1,000 down payment and signed a 12%, 2-year note for the balance 1. Prepare general journal entries to record the preceding transactions 2. Post to the general ledger accounts 3. Prepare the income statement and balance sheet assuming the company is income tax exempt and all net income was retained in the business. Use the table below as a guide for part 1. Hint: The last line for each date in the table is for the transaction explanation and the remaining lines above it are for the account titles. Example is shown for December 1st **Remember: Debits must equal Credits for each transaction. Also, make sure you choose only account titles that are in the above table in addition to the revenue, expense, and dividend accounts as stated below the table. Do not make up your own account names. Account title and explanation Debit Credit Date 1-Dec Prepaid 12-month insurance at $2400 4-Dec 7-Dec 11-Dec 14-Dec 18-Dec 20-Dec 22-Dec 31-Dec 31-Dec