Biggy Toys, Inc. started operations of the worlds best toy store on January 1, 2023. The company is on the accrual basis for financial statement purposes. Biggy Toys, Inc. purchases their merchandise from other suppliers who manufacturer the toys. Biggy Toys, Inc. marks up the price to sell to customers. During the month of January, Biggy Toys, Inc. completed the following transactions:

Opened a business bank account in the name of Biggy Toys Inc., with a deposit of $30,000 in exchange for common stock.

Borrowed $50,000 by issuing a note payable, 6% per annum, 5-year term.

Purchased inventory for $10,000 from JRR Toy Manufacturers, Inc. at terms of 2/10 n/30.

Received cash from toy sales, $15,000. Sales tax rate is 8%. (Hint: Inventory on January 31 = $5,000)

Paid security deposit for store rent of $3,000- and first-months rent on store space, $2,500.

Paid utilities expense for the month, $250, and miscellaneous expense, $500.

Paid store clerk salaries, $3,250, gross pay. (Make sure to record associated liabilities)

Paid interest on the note payable (calculate the interest based upon facts in b).

Purchased display fixtures for the store, paying cash of $20,000. The company chooses straight-line depreciation for book purposes. The fixtures are deemed to have a 7-year useful life and no salvage value.

Paid dividends, $1,500.