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Brothers Anthony and Christopher Gaber began operations of their tool and die shop (A & C Tools Inc.) on January 1, 2019. The company's fiscal year ends on December 31. The trial balance on January 1, 2020, was as follows: Account No. Account Titles Debit Credit 01 Cash $ 3.000 02 Accounts receivable 5.000 03 Service supplies inventory 12.000 04 Land 05 Equipment 60.000 06 Accumulated depreciation (equipment) $ 6.000 07 Other assets (not detailed, to simplify) 4.000 11 Accounts payable 5.000 12 Notes payable 13 Wages payable 14 Interest payable 15 Income taxes payable Interest payante 15 Income taxes payable 21 Contributed capital (65,000 shares) 65,000 31 Retained earnings 8,000 35 Service revenue 40 Depreciation expense Income tax expense 41 12 Interest expense 43 Other expenses Totals $84.000 $84.000 Transactions and events during 2020 are as follows: a Borrowed $10,000 cash on a 6 percent note payable, dated March 1, 2020. b. Purchased land for future building site: paid cash. $9.000. c Earned revenues for 2020 of $160,000, including $50,000 on credit. d Sold 3.000 additional shares for $1 cash per share. e Recognized other expenses for 2020, $85.000, including $20,000 on credit. f Collected accounts receivable, $24.000. f. Collected accounts receivable, $24,000. g. Purchased additional assets, $10,000 cash (debit other assets account). h. Paid accounts payable, $13,000. i. Purchased service supplies on account, $18,000 (debit to Account No. 03). j. Signed a $25,000 service contract to start February 1, 2021. k. Declared and paid cash dividend, $15,000. Data for adjusting entries are as follows: 1. Service supplies inventory on hand at December 31, 2020, $12,000 (debit other expenses account). m. Depreciation on the equipment estimated at $6,000 per year. n. Accrued interest on notes payable (to be computed). o Wages earned since the December 24 pay date but not yet paid, $15.000. p. Income tax expense for 2020 payable in 2021, $8,000. Required: 1. Set up T-accounts for the accounts on the trial balance and enter their beginning balances. 2. Record transactions (a) through (k) and post them to the T-accounts. 3. Record and post the adjusting entries (/) through (p). 4. Prepare a statement of earnings (including earnings per share), a statement of changes in equity for 2020. and a statemen position at December 31, 2020. 5. Record and post the closing entries. 6. Prepare a post-closing trial balance. 6. Prepare a post-closing trial balance. 7. Compute the following ratios for 2020 and explain what they mean: a. Current ratio b. Total asset turnover ratio c. Net profit margin ratio d. Return on equity