Date	Accounts Title and Explanation	Debit	Credit
1	Cash	150,000
	Common Stock		150,000
2	Equipment	25,000
	Inventory (1000 x 70)	70,000
	Office Supplies	5,000
	Cash		100,000
3	Land	100,000
	Long term Notes Payable		100,000
4	Inventory (2000 x 65)	130,000
	Accounts Payable		130,000
5	Accounts Payable	110,000
	Cash		110,000
6	Accounts Receivable	300,000
	Sales Revenue (2500 x 120)		300,000
7	Cost of Goods Sold	167,500
	Inventory (1000 x 70) + (1500 x 65)		167,500
8	Cash	240,000
	Accounts Receivables (80% x 300000)		240,000
9	Bad Debts (20% x 300000) x 1/4	15,000
	Allowance for Doubtful Debts		15,000
10	Salaries Expenses	60,000
	Cash		58,000
	Salaries Payable		2,000
11	Rent Expenses	12,000
	Cash		12,000
12	Office Supplies Expenses	3,500
	Office Supplies		3,500
13	Depreciation Expenses - Equipment	5,000
	Accumulated Depreciation- Equipment		5,000
	(25000 - 0)/5
14	Income Tax Expenses	11,000
	Cash		8,000
	Income Tax Payable		3,000
15	Treasury Stock	6,000
	Cash		6,000
16	Dividend	10,000
	Cash		10,000
17	Interest Expenses	12,000
	Interest Payable		12,000
	(100000 x 12%)
Total		1,432,000	1,432,000

Prepare:

A) Income statement

B) Statement of retained earnings

C) Balance sheet

D) Cash flow statement.