HW 2 1. Berrettini Bev has been operating for 3 years. At the beginning of 2020, the company had the following account balances: Cash $ 45,000 Equipment 15,000 Building 250,000 Accounts payable 12,000 Land 40,000 Inventory 43,000 Notes payable (short term) 10,000 Notes payable (long-term) 70,000 Common stock ($.50 par value) 20,000 Retained earnings 81,000 Additional paid-in-capital (APIC) 200,000 During 2020, the company had the following transactions: a. Purchased inventory for $40,000 on account b. Borrowed $100,000 and signed a two-year note payable C. Purchased equipment for $14,000 d. Issued 5,000 shares to investors for $27,500 e. Paid for the inventory purchased in a. above f. Paid the short-term note payable (ignore interest) g. Declared a dividend of $1.00 per share Required: a. Prepare journal entries for each of the above transactions. For each entry indicate the effect (1 V). b. Set up a t-account for each account and enter the opening balances at 1/1/20. c. Post the 2018 transactions to the t-accounts and calculate the balance for each account. d. Prepare a trial balance at 12/31/2020. e. Prepare a classified balance sheet at December 31, 2020 (use text exhibit 2.8 as a guide)