$ Cash Inventory Equipment Accounts payable Investments (short term) Accounts receivable Notes payable (long-term) Common stock ($1 par) Retained earnings Additional paid-in-capital (APIC) 45,000 70,000 100,000 15,000 7,500 32,000 90,000 500 24,000 125,000 During 2018, the company had the following transactions: a. Provided catering services to customers for $195,000 (cost 70,000) receiving $20,000 in cash and the remainder on account. b. Purchased new equipment costing $15,000; signed a long-term note. c. Paid $6,000 for advertising expense. d. Collected $150,000 from customers on account. e. Paid $1,500 on the long-term note (ignore interest). f. Paid employee wages of $66,000. g. Paid kitchen space rent $15,000. h. Paid $15,000 of accounts payable. i. Received $800 interest on investments j. Paid income tax expense $2,000 k. Received $3,000 advance for a catering event in January 2019. 1. Paid $1,000 for an insurance policy for the year 2019. m. Purchased inventory $50,000 on account. Required: a. Prepare journal entries for each of the above transactions. For each entry indicate the effect (1). b. Set up a t-account for each account and enter the opening balances at 1/1/18. c. Post the 2018 transactions to the t-accounts and calculate the balance for each account. d. Prepare a trial balance. e. Prepare a classified balance sheet (follow exhibit 2-8) and income statement* for the year ended 12/3 f. Calculate the net profit margin rounding to the nearest percent. *Use the format for the sample company posted on Canvas