Monmath Corp. began operations in March of year 3. 

The following transactions occur during March. 

a. On March 1 of year 3, Monty contributes $20,000 for 10,000 shares of $1 par value.

b. On March 1 of year 3, Monmath borrows $10,000 from the bank at an interest rate of 12%. The loan plus interest is due in twelve months.

C. Monmath purchases $15,000 of inventory on account

d. Monmath sells $10,000 of inventory for $12,000 on account.

e. Monmath collects all his accounts receivable.

F. Monmath pays for half of the inventory purchased in (c) above.

g. Repairs were made to the building for $300 in cash (record this as a repair expense)

H. The firm paid $250 for one-year subscriptions to ski magazines. None of the magazines have been received to date.

i. On March 31, the company purchases a machine for $10,000, freight of $675, and installation costs of $1,500.

Prepare:

1. Journal entries as of March 31 of year 3.

2. Prepare the balance sheet as of March 31.