Part A Prepare journal entries. Then complete the ledger t-accounts on the next page.

a. Tim sold l,000 shares of common stock to family and friends for $3 per share.

b. Tim sold a $2,000 bond payable to one of his coworkers from the bank. The two-year bond carries a l2% annual interest rate. Interest is paid at the end of each six months in cash.

c. Tim purchased a computer, paying $2,400 in cash. The computer should last for two years and Tim prefers to use straight line depreciation.

d. Tim provided services to a family friend, charging him $500, which is due by January 31 of next year.

e. At December 3l, Tim accrued interest on the bond payable and recorded depreciation expense.

all the options that I found on the next page with the T accounts Accounts receivable, Cash, Computer, Accumulated depreciation, bond payable, interest payable, common stock, additional paid in capital, revenue, depreciation expense, interest expense.

Part B In the space below, prepare an income statement, a statement of retained earnings, and a balance sheet to reflect the events in Tims firm during the month of December.