I) On 1/1/20, ASC begins doing business by obtaining CASH from three principal owners: Lawrence J. Abbott for $100,000, Don Majkowsky for $50,000 and Brett Favreau for $50,000. All 3 principals pay in CASH (for a total of $200,000). Please give the journal entry to describe this transaction (please simply denote this as contributed capital).2. On 1/1/20, ASC obtains a cash register for $12,000 on account. It has a 0 salvage value and a useful life of 5 years. Please give the journal entry to describe this transaction.3. On 1/1/20, ASC obtains bank financing by procuring a 10-year loan for $20,000 (i.e. the principal of $20,000 is due in 1/1/2028) with an annual interest rate of 5% with payments DUE in CASH at 12/31 of each year. Give the journal entry to describe this transaction.4. On 1/1/20, ASC purchases on account 100 Air Abbotts for $15,000. It also purchases on account 200 Air Smunts for $32,000. Please give the journal entry to record this transaction.5. During the year, ASC paid IN CASH the following to its workers:Administrative Salaries to CEO, accountant, etc..$2,000Salaries to retail workers $4,000Please give the journal entry to describe this transaction.6. During the year, ASC sold 50 Air Abbotts to Dr. Paul Fischer ON ACCOUNT for $1,000/Air Abbott. Give the journal entry to describe this transaction. 7. During the year, ASC sold 80 Air Smunts for $2,000/Air Smunt in CASH. Give the journal entry to describe this transaction.8. During the year, ASC paid CASH the following bills:Utilities for office building$5,000Rent for building$2,000Give the journal entry to describe this transaction.9. Dr. Paul Fischer pays $10,000 of his account balance. Give the journal entry to describe this transaction.10. Give any adjusting journal entries needed on 12/31/20.11. Please prepare the CLOSING journal entry for 12/31/20.12. Based upon 1above, PREPARE AN INCOME STATEMENT for 2020.13. Based on the above, prepare a BALANCE SHEET for 2020.

II) During the year, ASC paid the following to its workers (in cash):Administrative Salaries to CEO, accountant, etc..$2,000Salaries to retail workers $4,000Please give the journal entry to describe this transaction.2.During the year, ASC sold 50 Air Abbotts to Dr. Mike McCarthy for $1,500/Air Abbott in CASH. Give the journal entry to describe this transaction. 3.During the year, ASC sold 80 Air Smunts for $2,000/Air Smunt in CASH. Give the journal entry to describe this transaction.4.During the year, ASC paid CASH the following bills:Utilities for office building$5,000Rent for building$2,000Give the journal entry to describe this transaction.5.Dr. Paul Fischer pays $20,000 of his account balance. Give the journal entry to describe this transaction.6.Abbott Shoe Company pays $30,000 cash to its shoe vendor. Give the journal entry to describe this transaction.7.On 12/15/2018, Abbott Shoe Corporation pays a CASH DIVIDEND of $250,000. The cash dividends are paid to Lawrence Abbott for $125,000, Don Majkowsky for $62,500 and Brett Favreau for $62,500. Please give the journal entry to describe this transaction.8.Give any adjusting journal entries needed on 12/31/21.9.Please prepare the CLOSING journal entry for 12/31/21.10.Based upon 1-9 above, PREPARE AN INCOME STATEMENT for 2021.11.Based on the above, prepare a BALANCE SHEET for 2021.12.Put your 2020 Balance Sheet next to your 2021 balance sheet. Answer the following:a. What is your 12/31/2020 retained earnings balance in comparison to your 12/31/2021 retained earnings balance?b. Is it possible to determine whether Abbott Shoe is going in reverse or going forward based upon an analysis of your retained earnings section?

c. Under WHAT circumstances could a financial statement user determine if a company was going forward or reverse based upon an analysis of the retained earnings section of the balance sheet?13.Put your 2021 income statement next to your 2020 income statement. Answer the following questions:a. Is Abbott shoe going in reverse or going forward?b. If Abbott Shoe is going forward is it ACCELARATING (which means earnings growth)?c. If Abbott Shoe is accelerating, describe HOW it is accelerating.