Nikki$$s Total Body Beauty

In October of $2022,$ Nikki Raymond realized her dream of opening her own beauty salon. Nikki$$s Total Body Beauty offers hair styling, manicures and pedicures, and tanning beds along with a full line of hair and nail products. Nikki rents a completely furnished space that was last used as a salon. Accordingly, she does not need to purchase furniture or equipment.

Record the following business transactions for the fourth quarter of $2022.$

$1.$ Nikki issued $2,500$ shares of stock. Shares sold for $$7\mathrm{.}50$ each.

$2.$ On October $1$st$,$ Nikki took out a $$5,000$ loan from the bank. The loan carries a $6\%$ interest rate and is due November $1,2024.$ Interest is due at the end of each quarter and Nikki pays it when due.

$3.$ TBB purchased an initial supply of various hair and nail care products for $$5,000,$ all on account. These are products that the salon will sell to clients.

$4.$ TBB also purchased $($for cash$)$ a supply of products costing $$2,100$ for use by the stylists and manicurist. All of these supplies were used up during the quarter.

$5.$ Nikki paid for her initial product order in late$-$November. She then ordered $$1,750$ more in product to have on hand for clients to purchase. $($This additional purchase was also on credit.$)$

$6.$ During TBB$$s Grand Opening, Nikki offered package deals for a series of five tanning sessions. Each package was priced at $$35.$ Nikki sold ten packages $($she received cash$).$

$7.$ Nikki decided to offer her regular clients charge accounts so that they could pay monthly. More casual clients must pay after each appointment. Total sales for salon services were $$40,000$ and total product sales were $$7,000$ for the three months. $($This is in addition to the tanning bed packages sold at the Grand Opening$).$ Sixty percent of sales were on account.

$8.$ Customers still owed $$13,200$ at the end of the year.

$9.$ Nikki estimates that $1\mathrm{.}5\%$ of credit sales will be uncollectable.

$10.$ As of December $24,$ Nikki had paid employees salaries totaling $$27,650.$

$11.$ TBB incurred utilities bills during the quarter totaling $$10,500.$ None of these bills were paid by December $31.$

$12.$ On December $31,$ Nikki reviews the tanning bed bookings and notes that clients who purchased the discounted packages used $30$ of the sessions over the three months.

$13.$ On December $31,$ employees take inventory and note that hair and nail care product costing $$2,150$ is still on the shelves.

$14.$ Employees are paid every two weeks. The first payroll $($January $7)$ of $2023$ is for $$2,300$ and one half of this covers pay earned in the last week of December.

After recording the transactions, make an income statement, balance sheet, and statement of cash flows for $2022$ for Nikki$$s Total Body Beauty.