Instructions: Questions are given on page 2. Pleaso upload your ancreers to Canvas: Noee: A template is provided on caevas under HW set 1 for analyzing the transactions using the Balance Shect Equation appeoach. Piease provide your solation to question 1 using the template. Beverly Scott establisbed We-Tel Corporation on Jamary 1, 2023. The company's business model is to help frms install and maintain networking equipment. In 2023, We-Tel engaged in the following transactions: 1. On lanuary 1, isooed 10,000 shares of common stock to fricnds and family for $12.00 each. 2. On January 1, bocrowed $0,000 from Independeat Bank. The bank loan is due in 5 years. (Soe A1 below for interest rate and payenent date,) 3. In Aanuary, purchased s.pplies inventory for eash, for $40,000 4. On January 1, signed a 2-ycar office lease, and paid $150,000 as rent in advance for the full 2 years of the lease. (Nlwo see A22 below.) 5. During March performed engincering servies for Cuatomer A asd sent an invoice of $300,000 to the cassomer. 6. In April, purchased additional supplios imventoey from a vendor "be credr" (ie, to be paid later), and received an invoice for $2$0,000. 7. In June, received full paymera on invoice from Customer A. (See HS above.) 8. In July, provided servee to Costomer B and invoiced the customer $400,000. 9. In July, paid DeubleClisk 57,000 for 14,000 oeline advertising runs (7,000 to be run from July to December this year, and the rest to be ran next ycar). (Also see A4 below.) 10. In August, received paymes of $190,000 from Ceslomer 8 (see as above). The customer has informed that the remaining payment will be made is January next year. 11. Is July, made a partial payment of $210,000 to the vendor foe the supplies purchases made in April. (See no alove) 12. During 2023, paid \$32,000 for selling and general administrative expense 13. During 2023, paid $160,000 in salaries as wages expense. 14. In December, signed a service contract with Customer C so provide services of $300,000 in 2023 . No money was received and no work was performed in 2023 . 15. In December, We-Tel declared and paid dividends of 50.2 per share. The company provided the following additional in formation to help with any accounting entries to be made at year-end: A1 For the loan from Independent Bank (sec \#2 above), interest of 8.5% is due each year on January 1. The first interest payment is due on January 1, 2024. The company will book interest expense for the year, as required by accrual accounting. A2 As noted in transaction 4, rent was paid for 2 years in advance. A3 As of December 31,2023 , only $200,000 of supplies purchased in #3 and #6 above remained in inventory. The remaining $90,000 of the purchased items were used for providing service during the year. A4 DoubleClick confirmed that half of the purchased ads were run this year (see \#9). Questions 1. Record the events described above on the attached Balance Sheet Equation (BSE) worksheet. Also compute and show the ending balances for each account. Notes: a) The worksheet has some suggested account headings. You may not need all the account columns or event rows provided. You may also need to add additional columns or rows. Feel free to change the headings as you see fit to best describe the transactions. Or, create your own worksheet. b) Label each event in the first column using the transaction designations provided in the problem, e.g., 1, 2, A1, A2 etc. c) For each transaction that affects the income statement via the Retained Earnings column, state in the final column the relevant income statement item affected. d) If a transaction does not affect the balance sheet or income statement, indicate in the final column that no BSE entries were required. e) This worksheet is only intended to record BSE entries for the year 2023. Do not record any BSE entries affecting 2024 etc. (Hint: Answer Q2 and Q3 after first completing the BSE worksheet for Q1.) 2. Prepare and show the income statement for We-Tel for the year 2023. 3. Prepare and show the balance sheet for We-Tel as of December 31, 2023