P3-11 (LO7) (Cash and Accrual Basis) On January 1, 2017, Norma Smith and Grant Wood formed a computer sales and y in Soapsville, Arkansas, by investing $90,000 cash. The new company, Arkansas Sales and Service, has the fol- 071 lowing transactions during January 1. Pays $6,000 in advance for 3 months' rent 2. Purchases 40 personal computers at a cost of office, showroom, and repair space. of $1,500 each, 6 graphics computers at a cost of $2.500 each, and 25 printers at a cost of $300 each, paying cash upon delivery