1. Provide journal entries for the following transactions that SSC incurred during year 2022. DO NOT record adjusting entries for this question.

a. On January 1, SCC took out a one-year loan of $12,000 from a bank with 10% annual interest. The interest will be paid with the principal at maturity.

b. On January 1, SSC rented a retail space and prepaid $9,000 for 6 months' worth of rent. The lease started exactly on January 1.

c. On February 5, SSC sold cupcakes to retail customers for $20,000 who all paid with cash. Cost of the supplies used was $5,000.

d. On March 10, a retail store makes a large order for $10,000 of cupcakes and pays $5,000 in advance.

2. Record the adjusting entries as of March 31, 2022.

3. Prepare the income statement, statement of cash flow (using direct method) for the quarter ended on March 31, 2022, and the balance sheet as of March 31, 2022.

Below is Sternie Cupcakes \& Cookie (SSC)'s last Balance Sheet and Income Statement from Neremher 31 2021 For thic exprrice accirme that SGC dnes not nav tayes. Sternie Cupcakes \& Cookies Notes to the financial statements: 1. Accumulated Depreciation has a balance of 20,000 at Dec. 31. 2021 . 2. The PPE in the Balance Sheet as of Dec. 31, 2021 depreciates $6,000 per year. Below is Sternie Cupcakes \& Cookie (SSC)'s last Balance Sheet and Income Statement from Neremher 31 2021 For thic exprrice accirme that SGC dnes not nav tayes. Sternie Cupcakes \& Cookies Notes to the financial statements: 1. Accumulated Depreciation has a balance of 20,000 at Dec. 31. 2021 . 2. The PPE in the Balance Sheet as of Dec. 31, 2021 depreciates $6,000 per year