ABC Incorporated began operations on Jan 1^st, 2012 with an initial issuance of 10,000 shares,( each with par value $0.10), for $10 per share

1.On Jan 1^st, 2012, the company purchased a two-year fire insurance policy worth $10,000 and had paid it with cash.

2.Company purchased equipment worth $100,000 on Jan 1^st by signing a one-year Notes Payable. Interest rate on the loan was 8% and the interest and the entire principal will be paid on Jan 1^st 2013. The depreciation on equipment for the year 2012 was $20,000

3.On February 15th, 2012 the company received an advance of $70,000 for some technical services it provided to some companies. By the year end, the company had provided only 80% of the services it had contracted to provide.

4.On November 15^th, 2012, the company bought a piece of land for $200,000 by taking a 30-year mortgage loan. The monthly installment is $2,000 is payable on the 1^st of each month. The first installment of $2,000 was composed of $1,500 principal payment and $500 interest expense.

5.In 2012, the company purchased (in cash) and used up office supplies worth $20,000.

6.Company purchased Investments worth $20,000 on July 1^st 2012. The company usually receives the 10% interest on its Investments annually on June 30^th

7.On Feb 15^th, 2012, the company bought toys inventory worth $80,000 on credit from its suppliers.

8.On March 20^th, 2012, the company sold toys for $180,000. The company received 50% cash and the rest remained on account. The cost of these toys sold was $50,000

9.The companys franchisees owe ABCs $800 in royalties for sales the franchisees made in the last week of December 2012.

10.Utilities expenses for the year 2012 were $10,000 and were paid in cash.

11.Wages accrued in the last week of 2012 were $2,000 and will be paid in the first week of 2013.

12.On December 15^th, 2012, the company declared cash dividends of $20,000 which will be paid sometime in 2013.

13.Assume tax rate is 20%

Prepare the journal entries, trial balance, Income Statement, Statement of Stockholders Equity and Balance Sheet for the year ending December 31^st 2012.