P2-1 Comments: 1. This is an example of accounting capturing organization history on an event-by-event basis. This means that whenever an event happens, the accounting system records the event. 2. Here are some check figures: Net Income is $18,233 Total Assets are $123,083 Total Liabilities are $14,850 Shareholders Equity is $108,233 Transactions Bobs Chocolate Chips and More, a bakery specializing in gourmet pizza and chocolate chip cookies, started business October 1, 2022. The following transactions occurred during the month. a. Common stock of $90,000 was sold at par to start the business. b. Equipment, consisting of mixers and ovens, was acquired October 1 for $30,000 cash. The equipment is expected to last five years and can be sold at that time for $5,000. Management uses the straight-line method to calculate depreciation expense. c. Ingredients costing $15,000 were purchased on account during the month and all but $5,000 was paid for by the end of the month. d. Rent is $500 a month. October, November, and Decembers rent was paid October 5. e. A payment of $800 for utilities was made during the month. f. Sixty percent of the ingredients purchased in part c were prepared and sold for $35,000 on account; $26,000 was collected on accounts receivable during the month. g. Wages of $5,200 were paid during the month. Moreover, wages for the last three days of the month amounted to $400 and will be paid during the first week of November. h. Borrowed $12,000 as a Note Payable from the bank for additional working capital requirements, and $3,000 was repaid by month-end. Interest on the unpaid loan balance amounted to $450 at the end of October and was paid on November 5. Required: 1. Prepared the journal entries and adjusting entries. 2. Prepare the income statement for October. 3. Prepare the balance sheet as of October 31, 2022.