David Glaudan organized a new company, CapUniverse Inc. The company operates a store in an area mall and specializes in baseball-type caps with logos printed on them and provides also T-shirt customization service. David, who is never without a cap, believes that his target market is college students and minor league baseball teams. You have been hired to record the transactions occurring in 2021and prepare financial statements. The company had the following account balances at December 31, 2020: opening balance Long-Term Investment 16 000 Accumulated Depreciation, Equipment 18 000 Accounts Receivable 19 200 Accounts Payable 12 000 Cash 18 000 Short-Term Investment 2000 Supplies 400 Bank Loan Payable 7%interest rate 30 000 Unearned Revenue 2 000 Common Shares 50 000 Wages Payable 1 600 Inventory 12 000 Retained Earnings 20 000 Equipment 66 000 During 2021, David prepared the following journal entries: 1 Prepaid Insurance 780 Cash 780 2 Inventory 24,000 Accounts Payable 24,000 Accounts Receivable 36,000 Sales Revenue 36,000 Cost of Goods Sold 20,000 Inventory 20,000 4 Cash 26000 Accounts Receivable 78,000 Service Revenue 104,000 5 Accounts Payable 26,000 Cash 26,000 6 Cash 49,200 Accounts Receivable 49,200 7 Advertising Expense 2,400 Cash 2,400 2100 8 Interest Expense Bank Loan Payable 6,000 Cash 8100 9 Cash 600 Dividend Revenue 600 10 Utilities Expense 3,000 Cash 3,000 11 Dividends Declared 2,400 Cash 2,400 In addition, other transactions occurred at end 2021 and have not been recorded in the books): 12a. Paid $20,400 for wages during the year. 12b. The company owed another $400 to the employees for the last week of work in December At year-end. 13. Depreciated the equipment for the year. The company had bought its equipment at the beginning of 2018, and it was expected to last 10 years and have a residual value of $6,000. 14. Made an adjustment for the annual cost of the insurance that expired in 2021 (for your information: David paid $780 for a three-year fire insurance policy beginning January and the transaction has been correctly recorded). REQUIRED: 1) Prepare a statement of income for 2021 (15 marks). 2) Prepare the closing entries (4 marks). 3) Prepare a statement of financial position for 2021 (19 marks)