Kalvin has worked at a music store for the past 20 years. After years of planning and saving he has decided he is ready to go out on his own. January 2, Year 20, Kalvins Incredible Instruments Inc. opened for business. The following transactions took place during the fiscal year ended December 31, Year 20:

a) Kalvin invested $175,000, his entire life savings, into the company upon incorporation, January 2, Year 20.

b) Kalvins Incredible Instruments Inc. is located in the local mall. He signed a two-year lease with monthly rent of $8,000 due on the first of each month. The lease is in effect from January , Year 20 through December 31, year 20. The lessor required Ian to pay the first and last month's rent of January 2, year 20

c) Inventory of $120,000 was purchased on account

d) An insurance policy, which covered the period of January 2, Year 20 through December 31, Year 20, was purchased for $5,760 cash on January 2, Year 20.

e) He purchased furniture and fixtures for the store at an auction for $30,000. He paid cash.

f) Kalvins Incredible Instruments Inc.s Sales for the first year were as follows: Cash sales $430,000; credit sales $310,000.