Beginning Balances Cash $6,000 Land $5,000 Building $25,000 Accumulated Depreciation $15,000 Construction in Progress $10,000 Accounts Payable $5,000 Accounts Receivable $2,000 Long Term Debt $8,000 During the year: 1. The town billed customers $20,000 for services provided. It is estimated that 1% of the bills will not be collected (use the Allowance method). 2. The town collected $18,000 of the accounts receivable. 3. The town ordered equipment costing $10,000. 4. To fund capital projects, the town issued long-term debt (bonds payable) in the amount of $50,000. 5. The equipment arrived at a cost of $10,200, paid in cash. 6. Debt service on the long-term debt was paid ($2,000 interest and $3,000 principal). 7. Salaries of $9,000 were paid. 8. Depreciation for the year was: a. Buildings $1,000 b. Equipment $2,000 9. Accrued interest on long-term debt at year end was $700. 10. The liability for compensated absences at year end was $400; there was no liability at the beginning of the year. 11. At the end of the year, all capital projects were capitalized as Town Infrastructure. 12. Supplies of $500 were purchased but payment has not been made by year end. Required: 1. Prepare a trial balance at the beginning of the year. 2. Prepare the journal entries for items 1-12. 3. Prepare a balance sheet and operating statement for the end of the year.