Background

You are the accountant for "TechGenius Inc.," a company that manufactures innovative tech gadgets. The company has been in operation for three years, and you are responsible for preparing the financial statements for the fiscal year ending December $31,2023.$ The main financial statements you will prepare are the Balance Sheet and the Income Statement. Additionally, you will use the debit and credit system to record transactions accurately.

Task $1$: Balance Sheet

The Balance Sheet provides a snapshot of the company$$s financial position at a specific point in time. It includes three main components: Assets, Liabilities, and Equity. Below are the balances for TechGenius Inc. as of December $31,2023$:

Assets:

Cash: $$25,000$

Accounts Receivable: $$15,000$

Inventory: $$20,000$

Equipment: $$50,000($Accumulated Depreciation: $$10,000)$

Liabilities:

Accounts Payable: $$12,000$

Notes Payable: $$30,000$

Equity:

Common Stock: $$40,000$

Retained Earnings: $$18,000$

Using the information provided, prepare the Balance Sheet for TechGenius Inc. as of December $31,2023.$

Task $2$: Income Statement

The Income Statement shows the company$$s performance over a specific period, summarizing revenues and expenses to calculate net income. Below are the transactions for the year ending December $31,2023$:

Sales Revenue: $$100,000$

Cost of Goods Sold: $$40,000$

Salaries Expense: $$20,000$

Rent Expense: $$10,000$

Utilities Expense: $$2,000$

Depreciation Expense: $$5,000$

Interest Expense: $$3,000$

Using the information provided, prepare the Income Statement for TechGenius Inc. for the year ending December $31,2023.$

Task $3$: Debit and Credit System

The debit and credit system is fundamental to recording transactions in double$-$entry accounting. Here are a few transactions for December $2023.$ Record these transactions using the debit and credit system:

Purchased additional inventory on credit: $$5,000$

Paid salaries to employees: $$4,000$

Collected cash from accounts receivable: $$10,000$

Paid the monthly rent: $$1,000$

For each transaction, identify the accounts affected and whether they should be debited or credited. Prepare the journal entries for these transactions.