Classic Reserve Rare Coins (CRRC) was formed on January 1, 2015. Additional data for the year follows:

a. On January 1, 2015, CRRC issued common stock for $425,000. b. Early in January, CRRC made the following cash payments:

1. For store fixtures, $54,000.

2. For inventory, $270,000.

3. For rent expense on a store building, $10,000.

c.Later in the year, CRRC purchased inventory on account for $243,000. Before year-end, CRRC paid $163,000 of this account payable.

d. During 2015, CRRC sold 2,100 units of inventory for $350 each. Before year-end, the company collected 80% of this amount. Cost of goods sold for the year was $260,000, and ending inventory totaled $253,000.

e. The store employs three people. The combined annual payroll is $94,000, of which CRRC still owes $4,000 at year-end.

f. At the end of the year, CRRC paid income tax of $23,000.

g. Late in 2015, CRRC paid cash dividends of $41,000.

h. For equipment, CRRC uses the straight-line depreciation method, over five years, with zero residual value.

Requirements

1. Prepare CRRC