Capital Technologies Inc. began 2020 with inventory of $20,000. During the year, Capital purchased inventory costing $125,000 and sold goods for $165,000, with all transactions on account. Capital ended the year with inventory of $28,000. Capital prepared the following journal entries under the periodic inventory system at year end: E (Click the icon to view the journal entries.) Journal entries Requirements 1. Post to the Inventory and Cost of Goods Sold accounts. 2. Compute cost of goods sold by the cost-of-goods-sold model. 3. Prepare the December 2020 income statement of Capital Technologies Inc. through gross profit. Journal Entry Accounts Debit Credit Requirement 1. Post the beginning balance(s) and all entries to the Inventory and Cost of Goods Sold accounts. (Leave any unused cells blank JE 1 Purchases 125,000 Inventory Cost of Goods Sold Accounts Payable 125,000 JE2 Accounts Receivable 165,000 Sales Revenue 165,000 End bal. End bal. JE3 Cost of Goods Sold 20,000 20,000 Requirement 2. Compute cost of goods sold by the cost-of-goods-sold model. Inventory JE4 Inventory Cost of Goods Sold 28,000 28,000 Plus: JE5 Cost of Goods Sold 125,000 Goods available Purchases 125,000 Less: Print Done Choose from any list or enter any number in the input fields and then continue to the next question. Requirement 3. Prepare the December 2020 income statement of Capital Technologies Inc. through gross profit. Capital Technologies Inc. Income Statement For the Year Ended December 31, 2020 Gross profit