ABC Corporation was formed at the beginning of last year. The balances on its past-dosing trial balance prepared on December 31, at the end of ils frst year of operations, were as ollows: Cash Accounts Receivable Allowance for Doubtful Accounts 21.000 10,000 10,500 1,200 25,000 2400 Prepaid Rent Equipment Accounts Payable Salaries and Wages Payable Deferred Revenue Interest Payable Note Payable (long-term) Common S1ock Additional Paid-In Capital, Carman Retained Earnings 4 20,000 2,0D0 18,000 The following infornation is relevant to the first month of operations in the following year ABC sells its inventory at $200 per unit. ABC's January 1 inventory balance consists of using a perpetual inventory system. The $1,200 in Prepaid Rent relates to a payment made in December for January rent tnis 140 units at a total cost of $10,500. ABC's policy is to use the FIFO method, recorded The equipment was purchased on July 1 o last year. It has a residual value of $1,DDD and . an expected life of five years. It is heing deprecialed using the straight-line method Deferred Revenue is for 20 units ordered and paid for in advance by two customers in late December. One order of 15 units is to be filled in January, and the other will be filled in Notes Payable arises from a three year, percent bank loan received on October 1 last The par value on the common stock is S2 per share January Transactions: a. On 10, ABC paid employees' salaries and wages that were previously accrued cr December 31 b. A truck is purchased on 12 for $10,000 cash is estimated this vehicle will be used for 50,000 miles, afler which il will have no residual value. C. ABC declares a S0.50 cash dividend on each share of comman stock on 14, to be paid an 110 d. A $105 customer account is written off as uncollectible on 1/05 e. On 106, recorded sales of 100 units of inventory on account f. Colleclionis from customers on accourit, totaling $9,500, are recorded on 10e g. On 1/10, ABC distributes the $0.50 cash dividend declared on January 4. The company's stock price is curreilly $10 per share ABC purchases on axcount and receives 75 units of inventory on 1/11 for $4,875 The equipment purchased last year for $25,000 is sold on 115 for $20.000 cash. Record depreciation for the first half of January prior to recording the equipment disposal. Payroll for January 1-15 is recorded and paid on 1/16 k. Having sold the equipment, ABC pays off the note payable in full on 118. The amount paid is S20,360, which includes interest accrued in December and an additional S60 interest through January 18. On 1127, ABC records sales of 45 units of inventory on account. m. A portion of the advance order from December (15 units) is delivered on 1/29 n. To oblain funds far purchasing new equipment, ABC issued bonds on 1130 with a lotal face value of 590,000, stated interest rate of 5 percent, anrnual compouriding, and six-year maturity date. ABC recoived $81.420 from the bond issuance, which implies a market interest rate of 7 percent. o. On 1131, ABC records units-of-production depreciatio on the veicle (tr:k), which was driven 2.100 miles this month. p. ABC estimates that 2% of the fending acc:nunts receivable balance will b uncollectible Adjust the applicable accounts on 131, usingg the allowarice rmethod. Round to the nearest whole dollar q. On 1/31, adjust for January rent expired. r Accrue January 31 payroll or 131, whic:h will be payable on February 1 REQUIRED: Prepare Journal Entries for each transaction listed above Prepare an Income Statement, Statement of Stockholdors' Equity and Balance Sheet