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Part C: Workout problems. Answer Al Questions [20 Marks] [45 Minutes and 10 Minutes for Uploadingl 1. The following events affected Austin's Auto Shop during 2019. 1 Purchased merchandise on account that costs $25,000. The terms of purchases are 2/11 n/45. 2 The goods in Event 1 were purchased FOB shipping point with freight cost of $800 cash 3 Returned $2,000 of damaged merchandise (Event 1) to the supplier 4 Sold merchandise that costs $12,000 for $21,500 cash. The terms of sale was 2/11 n/45 5 Delivered merchandise to customers in Event 4 under terms FOB destination with freight costs amounting to $500 cash Paid the amount due on its account payable (Event 1) within the discount period. 7 The customer paid the amount due on (Event 4) during the discount period. Required: [7 Marks] a. Prepare journal entries to record the events [7 Marks] 6 2. Details about the account balances and general journal information of Maxwell Company for 2019 are given below. Beginning account balances for 2019 Cash Land Supplies Unearned Revenue Common Stock Retained Earnings Amount $ 150,000 20,000 50,000 100,000 100,000 20,000 The following are the general journal information of Maxwell Company for 2019. Maxwell Company General Journal, 2019 The following are the general journal information of Maxwell Company for 2019. Maxwell Company General Journal, 2019 Credit Event 1. Account Titles Cash Debit 30,000 Bank Loan 30,000 2. Office Equipment Cash 15,000 15,000 3 35,000 Account Receivable Service Revenue 35,000 4. Cash 15,000 Account Receivable 15,000 5. Dividends 5,000 Cash 5,000 6. Prepaid Rent 12,000 Cash 12,000 7. 50,000 Unearned Revenue Service Revenue 50,000 8 Rent Expense 6,000 Prepaid Rent 6,000 9. Supplies Expense 10,000 Supplies 10,000 Required: [ 13 Marks] b. Prepare T- Account [5 Marks] c. Prepare Trial Balance (3 Marks] d. Prepare Income Statement [2 marks] e. Prepare Balance Sheet (3 Marks]