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On December 31, 2020, Argo Corp had the following account balances: Cash 40,000 Inventory 15,000 Accounts receivable - Equipment 35,000 Accumulated depreciation - Accounts payable
On December 31, 2020, Argo Corp had the following account balances: Cash 40,000 Inventory 15,000 Accounts receivable - Equipment 35,000 Accumulated depreciation - Accounts payable 10,000 Bonds payable 40,000 Retained earnings 5,000 Common stock 35,000 Treasury stock - In January 2021, Alegre Corp made the following transactions: 44,198 Issues $800 of common stock for cash. 44,200 Repurchases $2,000 of common stock. 44,198 Incurs and pays $1,000 of interest expense. 44,206 Purchases $14,000 of inventory for cash 44,201 Incurs and pays $20,000 of new salary expense. 44,211 Sells $9,000 worth of inventory for $45,000 on account. 44,577 Pays $8,500 of its outstanding accounts payable 44,578 Collects $36,000 of its 1/15 credit sale 44,590 Incurs $7,000 of depreciation expense 44,226 Incurs $4,500 of income tax expense. 44,592 Pays a $1,200 cash dividend to common stock holders Prepare an income statement and equity statement for the month of January, and a balance sheet for January 31. Include Gross profit, operating earnings, earnings before taxes, and net income on the income statement. Include total liabilities and total equity on the balance sheet
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