Owlet Corporation prepares annual financial statements. The balance sheet at December 31, 2016, is presented below. Owlet Corporation Balance Sheet December 31, 2016 Assets Liabilities and Stockholders' Equity Cash Accounts receivable Allowance for doubtful accounts Inventory Prepaid insurance Equipment A/D - Equipment 19,300 10,000 70,000 57,800 16,700 Accounts payable 15,000 (200) Common stock ($1 par) Paid-in capital in excess of par-Common stock 23,200 Retained earnings 2,400 160,000 (60,000) 157,100 157,100 During 2017 the following transactions occurred: Purchased $132,700 inventory on account. Owlet Corp. uses a perpetual inventory system. Sales of $220,000, plus 5.6% sales tax, were made to customers on account. Cost of goods sold was 1. $125,200. Received $8,600 cash down payment for orders that will be shipped next year. Issued 10 year, $50,000 face value, 4% bonds on July 1 at 102. The bonds were sold to yield an effective 3. annual rate of 3.7582%, and they pay interest every January 1 and July 1. 5. Collected $170,000 on account. 6. Paid general expenses of $32,100. 7. Paid $81,000 on account. 8. Paid the sales tax collected from customers to the State of Wisconsin. 9. On January 1, Owlet Corp. sold for $5,000 cash equipment which originally cost $30,000. Accumulated depreciation for this equipment as of December 31, 2016, was $20,500. 10. Issued 1,500 shares of $100 par, 8% preferred stock for $175,000 cash