Able Co. began operations in December 2021 with the following transactions occurring in that month. Note that there are no beginning balances in the accounts because this is the first month of operation

Problem 1 Recording Transactions Able Co. began operations in December 2021 with the following transactions occurring in that month. Note that there are no beginning balances in the accounts because this is the first month of operation. a. Sold shares of the company's stock for $430,000 cash. b. Purchased land worth $60,000 and a building worth $90,000, paying a $20,000 down payment and signing a note payable for the remainder. c. Performed services for $235,000 on credit. d. Purchased supplies on account for $12,400. e. Paid $36,000 for a two-year insurance policy. f. Received $120,000 cash payment for the services previously performed on account. g. Paid wages to employees for $48,000 (not previously recorded). h. Declared dividends to stockholders of $20,000. i. Recorded $1,200 depreciation on the building. j. Recorded the use of one month of insurance (see part e above). k. Paid the dividends that were declared in part h above. 1. Determined that ending supplies on hand at December 31 were $1,800. Recorded the use of supplies for the month. m. Recorded the utility bill of $2,300 for December's utilities; the bill will be paid next month. n. Recorded taxes at a tax rate of 30% (Hint: Do the income statement to determine the dollar amount for this entry). Required: 1) Prepare journal entries for each of the above transactions. Omit explanations. 2) Prepare an income statement, balance sheet, and statement of cash flows for December. Assume a tax rate of 30%. (For the statement of cash flows, it may be easiest to prepare a T-account for tax and then determine where each increase and decrease in cash would go in the statement)