3 Below are transactions for the month of January, the company's first month of operations: It uses the straight-line method for depreciation and amortization. 1 01-Jan Received initial equity financing of 100,000 cash. Took out bank loan of 200,000, with an annual interest rate of 2 01-Jan 12%. The first interest payment will be made on 1 Feb. 3 01-Jan Purchased 6 months of prepaid rent for 6,000. Hired its manager at a salary of 3,500 per month. Cash salary will 4 01-Jan be paid on 1 Feb. Purchased a delivery truck for 15,000 cash. Estimated useful life is 5 01-Jan one year. The compnay expects to sell the truck at the end of one year for 3,000. Received 10,000 advance cash fee from client for consulting 6 10-Jan engagement. The work will be performed over the next three months. 7 10-Jan Purchased 10 units on credit, each costing 5,000. 8 12-Jan Sold 2 units on credit, for 15,000 each. Management determined that the company has satisfied 25% of its 9 31-Jan performance obligations for its consulting engagement from Jan 10th. 10 31-Jan The company sells its delivery truck for 10,000 cash Management estimates that 5,000 currently owed to the 11 31-Jan company by customers is not likely to be collected. a. Record the journal entries for the above transactions. b. Prepare an income statement for January. Ignore tax. c. Prepare a balance sheet as of 31 January. Since this is the first month of operations, beginning balances on 1 January were all zero. d. Prepare a statement of cash flows for the month of January. Use the indirect method for the operating cash flow