A group of students forms their own company called XYZ Enterprises that will perform financial consulting services. XYZ incurs the following economic events during its first month of operations in January 2017:

1. Receives equity financing of $160,000 from friends and family

2. Buys land for $20,000, paying 10% down with the seller financing the remainder on a five-year balloon note (100% principal paid in five years) at 10% simple annual interest

3. Orders office supplies in the amount of $250

4. Purchased servers and a phone system for $25,000 which will have a five-year life and no residual value

5. Received supplies from #3 with 30 day payment terms

A. Prepare journal entries

B. Prepare T-Accounts to show posting of journal entries

C. Prepare a balance sheet