On the worksheets is an Income Statement and Statement of Retained Earnings transaction analysis worksheet and a Balance Sheet transaction analysis worksheet for ABC Company. Please sum and link the transaction analysis columns and worksheets such that the financial statements are properly updated after each transaction, and the sum across to totals. After properly setting up the transaction analysis worksheets, please record the following transactions.

Please record the transactions below: a. Purchased merchandise inventories, on account, terms 3/15, n/45, $40,000. b. Sold merchandise, on account, sales price $78,000, cost $48,000, terms 2/10, n/30. c. Paid for the merchandise purchased in "a", 11 days after purchase. d. Received payment from the customer in "b", 7 days after the sale. e. Paid wages, $11,900 cash. f. Some items that were sold a month ago were returned to ABC Company. These items were sold for $8,400 and their cost was $5,000. They were returned to inventory and cash was refunded to the customer. g. ABC Company returned merchandise that it purchased some time ago to the vendor, $11,900 cost. They had not yet paid for this, so accounts payable was reduced. h Paid a cash dividend to shareholders, $22,000 i Paid utilities, $2,300.

a b d f 9 h Revised $ 1,100,000 582,000 518,000 Income Statement Year Ended December 31 Sales revenue Cost of goods sold Gross profit Expenses Wages Utilities Maintenance Supplies Other Total expenses Net income 230,000 28,000 16,200 3,600 8,100 285,900 232,100 $ ABC COMPANY Statement of Retained Earnings Year ended December 31 Retained earnings, January 1 Plus net income Minus dividends Retained earnings, December 31 $ 456,000 232,100 (17,200) 670,900 $ a b C d e f g h 1 Revised 31,300 86,500 11,600 120,000 249,400 2 Balance Sheet 3 December 31 4 5 Assets 6 Current Assets 7 Cash $ 8 Accounts receivable 9 Supplies 10 Merchandise inventory 11 Total current assets 12 Plant and Equipment 13 Building 14 Equipment 15 Land 16 Less accumulated depreciation 17 Net plant and equipment 18 Total assets $ 19 20 Liabilities and Stockholders' Equity 21 Current Liabilities Accounts payable $ 23 Note payable 24 Total current liabilities 25 Long-term note payable 26 Total liabilities 27 Stockholders' Equity Common stock 29 Retained earnings 30 Total stockholders' equity 31 Total liabilities and stockholders' ei $ 360,000 269,000 21,700 (25,800) 624,900 874,300 22 14,900 20,500 35,400 68,000 103,400 28 100,000 670,900 770,900 874.300