I understand how to prepare the balance sheet but am unsure of how to complete the T-account question or the income statement. Thnak you!

P3-7 Ralphy started a business on April 1, 2004, and had the following transactions on April 1: Issued 20,000 shares of $5 par value common stock for $100,000 cash a. b. Bought equipment to be used for making products, for $60,000. The equipment has a six-year life and is to be depreciated on a straight-line basis, with no salvage value. c. Paid $4,000 for one year's rent on a building. d. Bought $30,000 of inventory on credit. e. Bought $25,000 of Yahoo! common stock as a short-term investment. f. Issued a bond with a face value of $20,000 and an interest rate of 10%. Interest is to be paid annually. CHAPTER 3 INCOME STATEMENT CONCEPTS: INCOME, REVENUES, AND EXPENSES65 Between April 1 and December 31, the following transactions occurred: g. Sold inventory that cost $25,000 for $40,000. All sales were on credit. h. Paid $15,000 to suppliers of inventory for the credit purchase in part (d) above i. Collected $30,000 from customers on their accounts j. A customer owing $200 declared bankruptcy, and notice was received that the cus- tomer would pay only $50 of this debt. The $50 payment was enclosed k. Salaries and wages of $6,000 were paid. On December 31: 1. Salaries and wages of $1,000 had been earned but not paid. m. The market value of Ralphy's inventory was $12,500 n. The market value of Yahoo! common stock was $25,000 Require a. Enter the preceding transactions in T-accounts. Use appropriate account titles b. Enter all adjusting and closing entries required at December 31. c. Prepare a balance sheet for December 31. d. Prepare an income statement for the period April 1 to December 31