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