Consider the following transactions of a new venture in Duluth named DuluthDucks, started by two partners Jack and Jill. DuluthDucks manufactures winter clothing for industrial workers. The firm started business in July $2019$ and the following transactions took place during the year up to the end of December $2019.$ Post the transaction in the table provided on the next page. Based on these transactions, create an Income statement $($from Revenues to EBT i$.$e$.$ ignore tax for all reports$)$ and a Balance sheet for the end of the year $2019.$

Transactions $($all figures are in US$s$)$:

i$.$ Jack and Jill contributed $50,000$ each towards the equity of the new firm.

ii$.$ They further get a loan of $25000$ from the bank at $20$ percent$/$year$.$ The principal of the loan will be returned after two years

iii. They purchased cutting and stitching equipment worth $50,000,$ paying cash. The equipment has a life of five years, after which they cannot be used and will have zero market value.

iv$.$ They spent $$2,000$ on supplies and fabric, which they charged on the account $($credit$).$

v$.$ They spent $1000$ on the advertisement, for which they will pay in January $2020.$

vi$.$ Rent for the workspace they have leased is $$1,000$ a month, which was paid for six months in advance.

vii. During the period July to December, they used up all their supplies and fabric to make $1000$ jackets

viii. All the jackets were sold for $75$ each, but only half of the funds were received in cash. The rest will be paid next year.

ix$.$ They paid the only tailor working with them $2500$ per month in cash.

x$.$ A new customer paid an advance payment of $30,000$ for jackets to be supplied next year

xi$.$ The interest owed to the bank was paid at the end of the current year, but the principal will not be paid for the next two and a half years.

xii. They paid $$1000$ towards supplies account for the fabric and supplies towards the end of the year and the rest will be paid in March $2020.$

xiii. They recorded six months of depreciation on the equipment on a straight$-$line basis.

Accounting Transactions

$\backslash$table$[[$Assets$,$Liabilities,Owner's Equity$],[$Cash$,\backslash$table$[[$Accounts$],[$receivable$]],$Inventory,Equipment,Depreciation,$\backslash$table$[[$Accounts$],[$Payable$]],\backslash$table$[[$Long term$],[$debt$]],\backslash$table$[[$Common$],[$Stock$]],\backslash$table$[[$Retained$],[$Earnings$]],$Revenue,Expenses$],[,,.,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,,,,,,],[,,,,,-x-,,,,,],[,,,,,,,,,,]]$