Jan 1, 2007 Avery Munnings started legal services and also engaged in manufacturing as well as merchandising operation. Avery Munnings registered his company as Avery Munnings Corporation. During the month of the companys existence, the following operations took place.

Jan 1 The company sold common stock of $3,500,000 to raise capital.

Jan 1 Paid Rent of $6,000 for off-site storage facility to cover the first twelve months of operation starting from Jan 1.

Jan 1 After conducting an interview with Kardyl Smith, the company hired her at a monthly salary of $2,500. Kardyl Smith needed immediate cash before starting to work and the company paid her $5,000 as a salary advance to cover the first two months of her services starting from January 1.

Jan 1 Received $24,000 from John for legal services to be performed for him over a period of 12 months starting from January 1.

Jan 1 Purchased Office Building for $500,000, making a down payment of $200,000 and giving a promissory note to be paid at once at the end of 4 years. The market interest rate at the time of the purchase is 8%. The office building has a life of 20 years, salvage value of $50,000, and the company uses straight line method of depreciation.

Jan 1 Sold $400,000 12% 10-year bond at a yield of 10%. Interest is paid once every January 1 of the year.

Jan 2 Purchased goods on account from Joe, $800,000. Term 3/15; n/30. FOB destination. The buyer prepaid the transportation charge of $5,000.

Jan 1, Sold goods of $200,000 on account to George. Term /9; n/30. FOB shipping point. George paid transportation cost of $5,000. The cost of the goods sold to George was $80,000.

Jan 3 George returned $8,000 goods that had a cost of $2,000.

Jan 5 Returned $20,000 goods to Joe.

Jan 5 Bought Office Supplies for $16,000 from Office Depot, paying $6,000 now and agreeing to pay the balance on February 28.

Jan 5 Bought materials for $350,000 cash.

Jan 6 Requisitioned for $70,000 direct materials which were put into production process.

Jan 6 Requisitioned for $15,000 Indirect materials which were put into production process.

Jan 7 Paid all the amounts due to Joe.

Jan 8 Purchased goods on account from Dameon $300,000. Term 2/12; EOM. FOB shipping point. Dameon prepaid the transportation charge of $6,000.

Jan 10 Collected the amount due from George.

Jan 10 Paid direct labor cost of $15,000.

Jan 11, Sold goods of $270,000 on account to Kevia. Term 3/15; n/30; FOB destination. The seller paid transportation charge of $5,000. The cost of the goods sold to Kevia is $150,000.

Jan 12 Returned $40,000 goods to Dameon.

Jan 12 Peformed legal services for Abdel Karim for a service fee of $20,000. Abdel Karim

made a down payment of $16,000 and agreed to pay the balance on Jan 20.

J Jan 16 Paid $40,000 for other factory overhead costs.

an 14 Paid the amount due to Dameon.

Jan 15 Paid indirect labor cost of $20,000.

Jan 15 Purchased goods on account from Juliyah, $400,000. Term 5/4; n/30. FOB destination. Juliyah paid the transportation charge of $6,000.

Jan 16 Returned $80,000 goods to Juliyah.

Jan 20 Collected the amount due from Abdel Karim.

Jan 21 Paid the amount due to Juliyah.

Jan 22 Applied 90% of the factory overhead to work in process.

can you please prepare an income statement and a retained earnings statement also closing entries