Consider the following scenario: . A newly incorporated company ("IX Nuts") engages in the selling of macadamia nuts. For the 2020 year of assessment, the following is applicable: The company was initially funded by a bank loan of $500k bearing interest at 5% payable annually in arrears Share capital was $1,000 paid for in cash by shareholders The company purchased $1m worth of macadamia nuts as stock during the year. 10% of this was owing to creditors at year end The company had sold 80% of its stock by year end The company incurred packaging costs of $100,000 in converting purchased macadamia nuts into the final product that is ready for sale. This amount is considered to be part of the cost of goods sold. The mark-up the company applied to its cost (including packaging) was 120% 75% of the company's sales were cash with the remainder being credit sales Salaries for the company for the year were $240,000 The only equipment purchased by the company was a packaging machine which was acquired in cash for $100,000. The machine is depreciated on a straight-line basis over 5 years Other expenses for the year were: o Rent expense of $80,000 o Marketing expense of $40,000 o Professional fees (legal/accounting) of $20,000 IT costs of $25,000 The company tax rate is 30% and assume all taxes are paid in cash by year end . 1) Prepare all the journal entries for the year 2) Prepare the company income statement for the 2020 year clearly showing gross profit, EBIT and net profit