Paid $$2,900$ cash to pay off a portion of the accounts payable.

On December $31,$ Year $1,$ Sentry recognized accrued interest expense. The note had a one$-$year term and an $8$ percent annual interest rate.

Year $2$ Transactions

Collected cash for the remaining balance in accounts receivable.

Paid cash to settle the remaining balance of accounts payable.

On September $30,$ Year $2,$ recognized accrued interest expense.

On September $30,$ Year $2,$ paid cash to settle the balance of the interest payable account.

On September $30,$ Year $2,$ paid cash to settle the notes payable.

Required:

a$.$ Record the events for Year $1$ and Year $2$ in an accounting equation. At the end of Year $1,$ total the columns to determine the Year $1$ account balances. The Year $1$ ending balances become the Year $2$ beginning balances. At the end of Year $2,$ total the columns to determine the account balances for Year $2.$

b$.$ Prepare an income statement, a statement of changes in stockholders' equity, a balance sheet, and a statement of cash flows for Year $1$ and Year $2$

c$.$ If the company were liquidated at the end of Year $2,$ how much cash would be distributed to creditors? How much cash would be distributed to investors?

Record the events for Year $1$ in an accounting equation. At the end of Year $1,$ total the columns to determine the Year $1$ account balances.

Complete this question by entering your answers in the tabs below.

$\backslash$table$[[$Req A$1$ Year $1,$Req A$2$ Year $2,$Req B$1,$Req B$2,$Req B$3,$Req B$4,$Req C$]]$

$\backslash$table$[[$SENTRY$,$ INCORPORATED$],[$Accounting Equation for Year $2],[$Event$,$Assets,$\backslash$table$[[=$