1. Record each of the transactions as they relate to the year ended December 31, 2020.

2. Prepare an Income Statement and Balance Sheet.

The books are only closed at the end of the year. The following items are not reflected in the General Ledger balances provided. Other information: A. The Note Receivable was issued on April 1" 2020. Interest of 15% per year and principal is due on March 31 2021. B. Depreciation for the year for the building is $850. C. The bank statement was received in early January. The bank statement showed items that were not reflected in the General Ledger: a. A cheque was returned for $500. This related to a sale. It is most likely that this amount will be collected in the near future. b. The bank charged $20 in service charges for the month of December. c. A cheque to pay an accounts payable in the amount S450 was incorrect posted as $540 D. The $4,200 in the Prepaid Expense represents a transaction posted on November 1 for the prepayment of rent for November, December and January. E. The $3,600 in Deferred Revenues represents funds received in November for work performed in December ($1,100) and work to be performed in January ($2,500) F. The $700 in Wages payable was posted in December 31 2019 for wages incurred in 2019 but paid in 2020. G. $1,000 in wages was paid on On January 5, 2021: $400 related to December 2020 and $600 for January 2021 H. A $260 invoice was received on January 21 for the period December 15 2020 to January 15 2021 Assets Transaction Cash Prepaid Expenses Interest Receivable Note Receivable Building Accumlated Depreciation Building Accruals Payable CR DR CR CR DR DR DR 20,000 DR 4,200 DR 12,000 DR 30,000 CR 2,000 CR 9,200 Balance Dec 31 Liabilities Shareholder Equity Wages Payable Deferred Revenue Deferred Revenue Capital Stock Retained Earnings Dividens Paid Revenues Wages Expense Interest and Bank Expenses DR CR DR DR DR CR DR CR DR CR CR 3,600 CR 2,000 CR 39,710 DR 4,000 CR 25,700 DR 8,700 700 540 Shareholder Equity Dividens Paid Revenues Wages Expense Interest and Bank Expenses Other Expenses PROOF CR DR CR DR CR CR DR 4,000 CR 25,700 DR 8,700 DR 3,470 Total DR 82,910 Total CR 82,910 540 0