Morgan Company's balance shect at December 31, 2019, is presented below. MORGAN COMPANY Balanc Sheet December 31, 2019 Cash $30,000 Accounts Payable $13,000 Inventory 30,000 Interest Payable 265 6,540 Notes Payable Prepaid Insurance 53,000 38,520 Owner's Captal 38,795 $105,060 $105,060 During January 2020, the following transactions ocourred. (Morgan Company uses the perpetual inventory system.) 1. Morgan paid $265 interest on the note payable on January 1, 2020. The note is due December 31, 2021 2. Morgan purchased $243,000 of inventory on account 3. Morgan sold for $482,000 cash, inventory which cost $268,000, Morgan also col lected $31,330 in sales taxes, 4. Morgan paid $220,000 in accounts payable. . Morgan paid $16,5D0 in sales taxes to the state 6. Paid other operating expenses of $20,000. 7 n January 31, 2020, the payroll for the month consists of sale es and wages of $60,000. All salaries and ages are subject to 7.65% FICA taxes. A total of $8 900 federal i come taxes are withheld. The salaries and wages are paid on February 1 Adjustment data 8. Interest expense of $265 has been incurred on the notes payable. 9. The insurance for the year 2020 was prepaid on December 31, 2019. 10. The equipment was acquired on December 31, 2019, and will be depreciated on a straight-line basis over 5 years with a $3,120 salvage value. Employer's payroll taxes include 7.65% FICA taxes, a 5.4% state unemployment tax, and an 0.8% federal unemployment tax. 11. Prepare journal entries for the transactions listed above and the adjusting entries. (Credit account titles are automatically indented when amount is entered. Do not indent manualy, Round answers to 0 decimal places, e.g. 5,275.) No. Account Tities and Explanation Credit 2. To record sales revenue) To recard sales revenue. To record cost of goods sokd. 8 9. 10. Prepere an adjusted trial balance at January 31, 2020. (Round answers to 0 decimal places, e.g. 5,275.) VAUGHN COMPANY Trial Balance Debit Credit Total Prepare an income statement. (Round answers to 0 decimal places, e.g. 5,275.) Prepare an owner's equity statement for the month ending January 31, 2020. (Round answers to 0 decimal places, e.g. 5,275.) Equity Statement AUGHN COMPANY Balance Sheet January 31, 2020 Assets Liabilities and Owner's Equity