Comprehensive exercise - ACCT 111 - 15 points Please journalize all entries. And answer all questions. 1 point each On January 15 a group of students decided to create a startup. They didn't have money, but $100,000. They tried to move into Dad's garage. He said no to them. They all came up with the same amount, $20,000 each. _LLC, and they were able to register. The name of the company is (Pick your own company's name) 1) What would be the first journal entry to incorporate the startup company? January 1st first year. 2) They had to purchase a Land with improvements, and a building since the Dad didn't believe in companies that starts in a garage. They agreed to pay $ 500,000 for the Land, improvements and building. The market price was Land: 200,000, improvements: 300,000 and building: 100,000. Date of purchase: February 19 first year. 3) They need a petty cash of $1,000. January 19 first year. 4) The depreciation terms were based on straight line, 10 years with salvage value of 20,000 for the Improvements, and 5,000 for the building. 5) I told you they didn't have money. Therefore, they had to borrow from a bank. The terms were $500,000, 5 years, 5%. They borrowed on February 19, first year. 6) They also purchase inventory. They purchase $ 50,000 on march 1". 7) After 6 months, they had they first sale, 50% on cash and 50% on account. Date of the first sale: July 14. Sales price: $10,000. Gross profit: 60% 8) They had sales of $10,000 every month. Same terms as 7) 9) They need to use an Allowance method. Their estimative is 5% of sales. 10) They also had to pre-paid insurance on January 1st, and they need to renew every year. $12,000 11) They receive salary every month. The salary is $2,000 for each; 12) Prepare the Income Statement for the year; 13) Prepare the balance sheet for the year; 14) Calculate all ratios that you have learned in class