Comprehensive Accounting cycle Review 10 (Part Level Submission) Aimes Corporation's balance sheet at December 31, 2016, is presented below. AIMES CORPORATION Balance Sheet December 31, 2016 Cash $30,000 Accounts payable $13,750 30,750 Interest payable 2,500 5,600 Bonds payable 50,000 Inventory Prepaid insurance 38,000 Common stock 25,000 Equipment Retained earnings $13,100 $104,350 $104,350 During 2017, the following transactions occurred. Aimes uses a perpetual inventory system. 1. Aimes paid $2,500 interest on the bonds on January 1, 2017. 2. Aimes purchased $241,100 of inventory on account. 3. Aimes sold for $480,000 cash inventory which cost $265,000. Aimes also collected $28,800 sales taxes. 4. Aimes paid $230,000 on accounts payable. 5. Aimes paid $2,500 interest on the bonds on July 1, 2017. 6. The prepaid insurance ($5,600) expired on July 31 7. On August 1, Aimes paid $10,200 for insurance coverage from August 1, 2017, through July 31, 2018 8. Aimes paid $17,000 sales taxes to the state. 9. Paid other operating expenses, $91,000. 10 Redeemed the bonds on December 31, 2017, by paying $48,000 plus $2,500 interest. 11. Issued $90,000 of 8% bonds on December 31, 2017, at 103. The bonds pay interest every June 30 and December 31 Adjustment data: 12 Recorded the insurance expired from item 7. 13. The equipment was acquired on December 31, 2016, and will be depreciated on a straight-line basis over 5 years with a $3,000 salvage value 14. The income tax rate is 30%. (Hint: Prepare the income statement up to income before taxes and multiply by 30% to compute the amount.)