1.journal entry for each transaction.

2.balance sheet as of December 31 of the current year.

3.Analyze the financial status of the company over this last year.Develop financial ratios where possible to support your analysis.

During the current year, the company had the following summarized activities:

a.Purchased marketable securities for $10,000 cash.

b.Lent $5,000 to a supplier, who signed a two-year note.

c.Purchased equipment that cost $18,000; paid $5,000 cash and signed a one-year note for the balance.

d.Hired a new president at the end of the year.The contract was for $85,000 per year plus options to purchase company stock at a set price based on company performance.

e.Issued an additional 2,000 shares of $0.50 par value common stock for $11,000 cash.

f.Borrowed $9,000 cash as a short-term note payable from a local bank.

g.Purchased a patent for $3,000 cash.

h.Built an addition to the factory for $24,000; paid $8,000 in cash and signed a three-year note for the balance.

i.Returned defective equipment to the manufacturer, receiving a cash refund of $1,000.