2. Bekele Company was incorporated on January 1,20X0. The following transactions occurred during the year. a. The company was incorporated. Shareholders invested $200.000 cash. b. The company purchased merchandise inventory for cash, FOB shipping point, $45.000. c. Paid the freight on shipment in transaction "b", $1.000. d. Purchased merchandise inventory on open account, FOB destination, $35.000. e. Inventory carried in inventory at a cost of $37.000 was sold for cash $25.000 and on open account for $75.000, for a grand total of $100.000, FOB destination. f. Paid the freight on shipment in transaction "d", $1.500. g. Collected accounts receivable, $18.000. h. Paid accounts payable, $30.000. i. Acquired equipment and fixtures for $36.000. Their expected useful life is 36 months. Bekele paid 12.000 as a down payment and signed a promissory note for $24.000. j. Recorded service revenue on account, and sent invoices to customers of $20.000. k. Received an advance payment of $5.000 from Customer " D " for the services to be provided during the year. 1. Provided the service to the customer "D" of $12.000 and collected the service fee after deducting the advance payment in transaction " k ". m. On April 1, Bekele signed a rental contract with property owner. The contract calls for $2.000 per month, payable yearly in advance. Therefore, Bekele paid $24.000 cash on April 1. n. Paid electricity, internet and utility bills, $2.000. o. Paid the employee wages and sales commissions in cash. The amount was $34.000. p. Acquired office supplies for $7.000 in cash. r. Depreciation expense is recognized $9.000 (36.000/36 months x9 months). s. The expiration of appropriate amount of prepaid rental services was recognized on December 31,20x0. t. As of December 31, 20X0, office supplies in amount of $5.000 remain unused. Required: a) Prepare journal entries for the transactions above b) Post the journal entries to general ledger c) Prepare a balance sheet as of December 31,20X0 and an income statement for the year of 20X0 2. Bekele Company was incorporated on January 1,20X0. The following transactions occurred during the year. a. The company was incorporated. Shareholders invested $200.000 cash. b. The company purchased merchandise inventory for cash, FOB shipping point, $45.000. c. Paid the freight on shipment in transaction "b", $1.000. d. Purchased merchandise inventory on open account, FOB destination, $35.000. e. Inventory carried in inventory at a cost of $37.000 was sold for cash $25.000 and on open account for $75.000, for a grand total of $100.000, FOB destination. f. Paid the freight on shipment in transaction "d", $1.500. g. Collected accounts receivable, $18.000. h. Paid accounts payable, $30.000. i. Acquired equipment and fixtures for $36.000. Their expected useful life is 36 months. Bekele paid 12.000 as a down payment and signed a promissory note for $24.000. j. Recorded service revenue on account, and sent invoices to customers of $20.000. k. Received an advance payment of $5.000 from Customer " D " for the services to be provided during the year. 1. Provided the service to the customer "D" of $12.000 and collected the service fee after deducting the advance payment in transaction " k ". m. On April 1, Bekele signed a rental contract with property owner. The contract calls for $2.000 per month, payable yearly in advance. Therefore, Bekele paid $24.000 cash on April 1. n. Paid electricity, internet and utility bills, $2.000. o. Paid the employee wages and sales commissions in cash. The amount was $34.000. p. Acquired office supplies for $7.000 in cash. r. Depreciation expense is recognized $9.000 (36.000/36 months x9 months). s. The expiration of appropriate amount of prepaid rental services was recognized on December 31,20x0. t. As of December 31, 20X0, office supplies in amount of $5.000 remain unused. Required: a) Prepare journal entries for the transactions above b) Post the journal entries to general ledger c) Prepare a balance sheet as of December 31,20X0 and an income statement for the year of 20X0