(10pts) Comprehensive Accounting Cycle Problem: Suppose that Sit Down, Inc. has the following account balances on July 1st, 2018. Cash: $40,452; A/R: $7,431; Supplies: $219, A/P $8,018, Common Stock: $25,000; Retained Earnings: $15,084; Assume all other account balances are $0 and Sit Down uses the following additional account titles: Cash, A/R, Supplies, Prepaid Rent, Equipment, Accumulated Depreciation- Equipment, A/P, Deferred Revenue, Wages payable, interest payable, notes payable, common stock, retained earnings, service revenue, wage expense, interest expense, depreciation expense, rent expense, and supplies expense. During the month of July, the following transactions occured: a. On 7/1/2018 Sit Down borrowed $12,000 from the bank, signing a note payable. The note payable is due in 4 years and has a 3.5% annual interest rate. b. On 7/1/2018, purchased equipment for $7,500 in cash. c. On 7/1/2018, prepaid $6,420 cash for a 6-month's rent, effective July 1st- December 31st, 2018. d. On 7/6/2018, purchased additional supplies worth $993 on account. e. On 7/9/2018, provided $11,380 worth of services to customers on account. f. On 7/14/2018 paid employees $10,000 cash for the two-week pay period 7/1-7/14 (10 work days). g. On 7/16/2018, received $4,905 in cash from a customer for services to be provided later in July and August. h. On 7/25/2018, collected $8,045 from customers in transaction e. i. On 7/28/2018, paid employees $10,000 cash for the two-week pay period 7/15-7/28 (10 work days). PART 6-Prepare financial statements (2pts): Prepare the following financial statements for Sit Down, Inc Income statement for the period ended July 31st, 2018 Statement of shareholders' equity for the period ended July 31st, 2018 .Classified balance sheet as of July 31st, 2018. PART 7 - Record closing entries and post the closing entries to T-accounts (1pt): Record closing entries using closing journal entries and post these closing entries to the appropriate T-accounts to complete the closing process. For revenue and expense accounts, don't forget to close to the 'Income Summary account first as we did in lecture before closing the net income/(loss) amount to Retained Earnings. PART 8-Prepare a post-closing trial balance (1pt): After calculating the ending balance in each T-account in PART 7, prepare a post-closing trial balance for Sit Down, Inc. as of July 31st, 2018 with the list of accounts in the following order: assets, liabilities, common stock, and retained earnings