Journalize the transactions and create Balance Sheet and Income Statement for year end 2016

Carl Corp. Prepares its financial statements under U.S. GAAP

During the Year

• The company begins operations on January 1, 2016. The company is started by issuing 100,000 shares of common stock for $5,000,000 ($1 Par value stock)
• The company immediately purchases $600,000 in inventory for cash and sells $200,000 of this inventory to customer #1 for $300,000 on credit.
• The company purchases a machine for $240,000 cash on January 1^st and depreciates it over 5 years (depreciation is recorded straight line at year end and there is no salvage value)
• On June 1^st, customer #1 pays us $80,000 of the amount due.
• During June, $50,000 dollars of research and development expenses are incurred. $15,000 of this amount has not been paid as of yearend (i.e. remains a payable).