1. On Nov 30, 2016, the Zu company had the following account balance

Account	Balance		Account	Balance
Cash	$3,200		Account payable	$10,700
Accounts receivable	9,900		Long term liabilities	3,600
Inventories	10,600		Total liabilities	14,300
Other current assets	2,000
Building and equipment (net)	42,000		Common stock	20,000
Land	9,000		Retained earnings	42,400
Total assets	76,700		Total liabilities and equities	76,700

Assume the company has a balance of $150,000 on revenue and $145,000 on expense account, as well as $5000 on dividend account. During the month of December, the Zu company entered into the following transactions:

Date		Transaction
Dec	1	Prepaid insurance for 12-month at $2,400
	4	Made cash sales of $3,000 at the cost of $2,000
	7	Purchased $2,400 of merchandise on credit. Paid $50 of related freight charge (expenses)
	11	Sold land for $7,800; the land has a cost $5,000
	14	Made credit sale of $4,000 at the cost of $2,000
	18	Purchased $1,250 of merchandise for cash
	20	Paid $1,200 of accounts payable
	22	Paid selling and administrative expenses in cash $1,500
	31	Depreciation expense of $1,200 was recognized for Dec
	31	Purchased land at a cost of $6,000 made a $1,000 down payment and signed a 12%, 2-year note for the balance

1. Prepare general journal entries to record the preceding transactions
2. Post to the general ledger accounts
3. Prepare the income statement and balance sheet assuming the company is income tax exempt and all net income was retained in the business.

Please choose only account titles that are in the above table in addition to the revenue, expense, and dividend accounts as stated below the table. Do not make up your own account names.