In the first year of operations, Caspar Company reported the following transactions:

Shareholders contributed $$1M$ in cash

Company issued $10-$year bonds in the amount of $$1$M $($stated rate $5\%,$ market rate $6\%)$; assume semi$-$annual interest payments.

The company purchased equipment for $$1M$ cash with useful life of $8$ years.

Purchase of inventory for $$800,000(50\%$ on account$).$

The company purchases real estate $($land and building$)$ for $$2\mathrm{.}8M$;$80\%$ was financed with a $30$ year mortgage. The fair value of the land was $$500,000$; the fair value of the building was $$2\mathrm{.}5M$; useful life was estimated at $30$ years.

The company sold $60\%$ of the inventory for $$500,000(25\%$ of which were sold on account$)$

The company depreciates the equipment using the double declining balance method and the building using straight$-$line $($no salvage value for either$).$

Cash operating expenses were $$200,000.$

Requirements:

$(1)$ Prepare all journal entries for Caspar Company for its first year of operations.

$(2)$ Prepare a trial balance for the year$-$end

$(3)$ Prepare simplified financial statements. You may have to make some assumptions $($or ask me$)$ to get all the information for these.