A company X was founded by X in 2023. The company is a budding entrepreneur and recently graduated from a culinary school. Company X made the decision to take her skills on the road and operate a food truck to take advantage of the explosive population of street vendors. Armed with some inheritance money, the owner purchased a used food truck, modifying it to suit her new business. She began operating the food truck in April of 2023 and chose December 31st as her year-end. During the peak season, the owner hired two of her friends to assist her. She is thinking that perhaps one of them may continue to work with her in the foreseeable future. The owners mother suggested that she incorporate her food truck business when she first started. She did so but is unsure what that means or what other reasonable alternatives she may have had. The company has also heard from other food truck owners that they are having issues with employees stealing cash and supplies. She is wondering what reasonable steps she could take to make sure that doesnt happen. Its now January 2024, and the company wants to get her first-year financials.

Based on the information in Exhibit #1 prepare the following and respond to X's other questions: 1. Journal entries for all the transactions 2. Final trial balance in good form. 3. Statement of income [income statement] for the period ended December 31, 2023 4. Statement of financial position at December 31, 2023

Exhibit #1

The following transactions took place for the company

1. The company was incorporated on January 1st, 2023. Madison invested $200,000 cash for 1,000 common shares.

2. The owner's mother invested $50,000 cash for 500 common shares.

3. The Frank Bank provided a loan of $150,000 on January 1st. The loan requires principal payments of $10,000 per year payable on January 1st of each year. The interest rate is 4%.

4. The company purchased a used food truck for $45,000 on February 1st. The truck has a useful life of 8 years and depreciation will be taken straight-line with a full year taken in the year that it was purchased.

5. The company incurred $8,000 of truck improvement costs that included a new exterior paint job, and refurbishment of the interior. Given that food trucks are more successful when they look new, Madison expects that these improvements will only last 5 years.

6. They purchased equipment on March 1st for $25,000. The equipment has been depreciated over 8 years. Take a full year of depreciation for the first year.

7. Annual liability insurance was purchased for $3,000 covering the period February 1 to August 31 annually. The entire amount was paid on February 1st with cash.

8. Food revenues amounted to $135,000 and all amounts were received in cash. Drink revenues [tracked separately] amounted to $22,000 and were all received in cash.

9. Salaries were paid to two employees. This amount totaled $38,000.

10. Inventory purchases [for souvenir sales] for the period totaled $180,000 with 50% of this amount still owing at year end.

11. The cost of the food that was sold was $40,000 and for beverages $4,400.

12. They declared and paid a dividend of $25,000.

13. The company paid $2,000 for advertising for the year.

14. The company paid $2,500 for utilities & internet for the year.

15. Food trucks are required to pay fees to the municipality in order to operate. They paid a monthly fee of $200 from April 1st until December 31st.

16. The company incurred $800 in fuel costs. Of this amount, $200 is still owing as of year-end.

17. Since the owner of the company is not operating the food truck during the winter months, there is no food inventory remaining. The owner did need to throw out $900 worth of food that was left over and not usable.