(P3-7) Ralphy started a business on April 1, 2004, and had the following transactions on April 1: a. Issued 20,000 shares of $5 par value common stock for $100,000 cash. b. Bought equipment to be used for making products, for $60,000. The equipment has a six-year life and is to be depreciated on a straight-line basis, with no salvage value. c. Paid $4,000 for one year's rent on a building. d. Bought $30,000 of inventory on credit. e. Bought $25,000 of Yahoo! Common stock as a short-term investment. f. Issued a bond with a face value of $20,000 and an interest rate of 10%. Interest is to be paid annually. Between April 1 and December 31, the following transactions occurred: g. Sold inventory that costs $25,000 for $40,000. All sales were on credit. h. Paid $15,000 to suppliers of inventory for the credit purchase in part (d) above. i. Collected $30,000 from customers on their accounts. j. A customer owing $200 declared bankruptcy, and notice was received that the customer would pay only $50 of this debt. The $50 payment was enclosed. k. Salaries and wages of $6,000 were paid. On December 31: 1. Salaries and wages of $1,000 had been earned but not paid. m. The market value of Ralphy's inventory was $12,500. n. The market value of Yahoo! Common stock was $25,000. Required: 1. Make journal entries for the transactions ark. (Note: Transactions a and j are journalized for your reference). 2. Make all adjusting entries required at December 31. (Note: The adjusting entry for salaries expense is given for your reference). 3. Make all closing entries required at December 31. 4. Post all journal entries, including the adjusting and closing entries, to T-accounts. 5. Prepare an income statement for the period April 1 to December 31. 6. Prepare a balance sheet as of December 31