After nearly destroying the city of Springfield USA because of many near nuclear melt downs caused by Homer Simpson, Mr. Burns decided to go into selling cookies.On January 2, 2020, Mr. Burn continued his Good Old Fashion Cookies Empire.The company is still a merchandise company and still uses a perpetual inventory system.

1 the journal entries on a document. (To be turned in separately)

2.Post all journal entries to the worksheet

3.Post all adjusting journal entries to the worksheet

4.In good form, produce a multi step Income Statement, Statement of Retained

Earnings, Balance Sheet, and Statement of Cash Flow

Journal Entries:

1.January 2:After returning from exile, Mr. Burns invested $600,000 of personal funds directly in the business (retained earnings) to strengthen his grip on the cookie market.No common stock ownership was given.

2. January 3: In order to keep the IRS off his trail, Mr. Burns transferred money from his personal account into a Cayman Island secret account for $1,000,000.

3. January 3:In order to expand his cookie factory and be able to dump toxic waste without being impeded by the Feds, Mr. Burns bought land for cash for $500,000.The bald children in the park were drawing attention from the Environmental Protection Agency.

4.January 4:After threatening to block out the sun, Mr. Burns was able to collect $115,000 of the 2020 accounts receivable beginning balance.

5.January 5:In order to ease his beginning of the year cash flow crunch, Mr. Burns issued Common Stock (1,500,000 shares at $2.00 per share). The Par Value is $1.00 per share.

6. February 1:In order to keep up with being 104 year old hip evil billionaire, Mr. Burns decided to purchase a new truck.The truck cost $60,000.Mr. Burns put a down payment on the truck of $10,000 and took out a note for the rest (long term).The interest rate of the note is 10%.The truck will depreciated by miles.The expected life of the truck is 100,000 miles.

7.February 20: Mr. Burns sold his delicious cookies to Candy Store on account $300,000.Mr. Burns offered terms 2/20, n40.The cost of merchandise sold was $150,000.