I. The ledger for Saturn Stores had the following account balances as of January 1, 20x2.

Cash $230,000

Accounts receivable 350,000

Inventory 300,000

Prepaid rent 60,000

Equipment 450,000

Accounts payable 130,000

Salaries payable 10,000

Dividends payable 15,000

Capital stock 850,000

Retained earnings 385,000

The company had the following transactions in 20x2.

1. Sales on account, $2,500,000.

2. Collections from customers, on account, $2,400,000.

3. Purchases of merchandise, on account, $1,600,000.

4. Payments to suppliers of merchandise, on account, $1,525,000.

5. Cost of merchandise sold, $1,550,000.

6. Salaries earned by employees, $380,000.

7. Salaries paid to employees, $385,000.

8. Cost of other services purchased on account and used, $130,000.

9. Payments to suppliers of other services purchased on account, $125,000.

10. Payments for the right to use the company's premises during the period from July 1, 20x2 to June 30, 20x3, $132,000.

11. Rental costs applicable to 20x2, to be determined. (Note that rent for the first 6 months of 20x2 ($60,000) was prepaid last year as shown in the account balances table above.)

12. Equipment purchased for cash, $80,000.

13. Depreciation on equipment, $88,000.

14. Dividends declared, $80,000.

15. Dividends paid, $75,000.

a. Set up T-accounts and enter the opening balances. Be sure to enter each balance on the correct side of its account. Post these entries to the appropriate T-accounts.