Garcia Tools Company started business on October $1,2023.$ Its fiscal year runs through to September $30$ of the following year. The

following transactions occurred in the fiscal year that started on October $1,2023,$ and ended on September $30,2024.$

On October $1,2023,$ Carol Garcia invested $$179,000$ to start the business. Garcia is the only owner. She was issued $10,000$

common shares.

On October $1,$ Garcia Tools borrowed $$220,500$ from a venture capitalist $($a lender who specializes in start$-$up companies$)$

and signed a note payable.

On October $1,$ the company rented a building. The rental agreement was a two$-$year contract requiring quarterly rental

payments $($every three months$)$ of $$10,000,$ payable in advance. The first payment was made on October $1,2023($covering

the period from October $1$ to December $31).$ Thereafter, payments were due on December $31,$ March $31,$ June $30,$ and

September $30$ for each three$-$month period that followed. All of the rental payments were made as specified in the

agreement.

On October $1,$ the company purchased equipment costing $$301,400$ for cash.

Initial inventory was purchased for $$90,500$ cash.

Additional purchases of inventory during the year totalled $$571,000,$ all on account.

Sales during the year totalled $$869,500,$ of which $$782,550$ were on account.

Collections from customers on account totalled $$658,500.$

Payments to suppliers on account totalled $$515,000.$

The cost of the inventory that was sold during the year was $$555,500.$

Selling and administrative expenses totalled $$83,600$ for the year. Of this amount, $$4,100$ was unpaid at year end.

Interest on the note payable from the venture capitalist was paid at year end $($September $30,2024).$ The interest rate on the

note is $10\%.$ In addition, $$26,300$ of the note principal was repaid at that time.

The equipment was depreciated based on an estimated useful life of $10$ years and an estimated residual value of $$27,400.$

The company declared and paid a dividend of $$6,100.$