More info On January 1, 2021, Stylistic issued its common stock for $510,000. Early in January, Stylistic made the following cash payments: a. $220,000 for equipment b. $243,000 for inventory (nine cars at $27,000 each) c. $25,000 for 2021 rent on a store building In February, Stylistic purchased three cars for inventory on account. Cost of this inventory was $117,000 ($39,000 each). Before year-end, the company paid off $70,200 of this debt. The company uses the first-in, first-out (FIFO) method to account for its inventory. During 2021, Stylistic sold eleven autos for a total of $649,000. Before year-end, it had collected 50% of this amount. The business employs two people. The combined annual payroll is $151,000, of which Stylistic owes $8,000 at year-end. At the end of the year, the company paid income taxes of $22,000. Late in 2021, Stylistic declared and paid cash dividends of $14,000. For equipment, Stylistic uses the straight-line depreciation method, over five years, with zero residual value. Print Done