1. The following transactions relate to the business of Patrick Jones. He decides that the accounting Required: A. Show necessary journal entries for the above transactions. Also show the entry for the transfer of the net income to equity account. (Capital A/C) B. Determine Mr. Jones balance on his capital account on Jan 1, 2018. C. Prepare an income statement for the year ended March 31. making all end of year adjustments. D. Show the owners' equity section as it would appear in Mr. Jones balance sheet on March 31 , 2018. 2. The following balances of assets and liabilities are given to you on December 2016: Inventory with a book value of $10,000 and market value of $12,000 Accounts Receivables \$ 15,000 Allowance for doubtful debts $1,000 Accounts Payable \$ 9,500 Equipment at cost $25,000, accumulated depreciation $5,000 Prepaid insurance $4,000 of which $2,500 is expired. Wages payable \$1,500 Cash $8,000 Withdrawals \$2,000 Required: Present the information in balance sheet form to determine the balance of owner's equity on December 31,2016