AP3-14A (Journalizing, posting, preparing statement of income and statement of financial position, and preparing closing entries) Perfect Pizza had the following account balances at December 31, 2019: Cash Accounts Receivable $33,000 Vehicles 80,000 15,000 Accumulated Depreciation, Vehicles 36,000 Inventory 10,000 Accounts Payable 7,000 Prepaid Rent Equipment Accumulated Depreciation, Equipment 30,000 Retained Earnings 3,000 Wages Payable 60,000 Common Shares 2,000 110,000 16,000 During 2020, the following transactions occurred: 1. Purchases of ingredients and supplies (inventory) were $230,000, all on account. 2. Sales of pizzas for cash were $510,000, and sales of pizzas on account were $40,000. 3. The company paid $105,000 for wages. 4. The company also paid $25,000 for utilities expenses. 5. Payments for ingredients and supplies purchased on account totalled $220,000. 6. Collections from customers for sales on account totalled $38,000. 7. Ingredients and supplies valued at $225,000 were used in making pizzas that were sold. 8. A dividend of $15,000 was declared and paid at the end of the year. Information for adjusting entries: 9. At the end of 2020, the amount of rent paid in advance was $1,500. 10. Wages owed to employees at the end of 2020 were $2,500. 11. The equipment had an estimated useful life of eight years, with no residual value. 12. The delivery vehicles had an estimated useful life of six years with a residual value of $8,000. Required a. Prepare journal entries for transactions 1 through 8. Create new accounts as necessary. b. Prepare adjusting journal entries for adjustments 9 to 12. c. Set up T accounts, enter the beginning balances from 2019, post the 2020 entries, and calculate the balance in each account. d. Prepare a trial balance, and ensure that the total of the debit balances is equal to the total of the credit balances. e. Prepare a statement of income for 2020. f. Prepare the closing entries, post them to the T accounts, and calculate the final balance in each account. g. Prepare a statement of financial position for 2020.