Part V: The Accounting Cycle (52 points) Assume Del's Delicious Bakery Company (DDBC) has been in business for several years. The balances in the accounts on January 1, 2018 are in the Transaction Analysis Worksheet and in the T-Accounts. The following transactions took place during 2018 1. Company purchased inventory on credit (with accounts payable), cost of $210,000 2. Company made credit sales (with accounts receivable), amount of $130,000 3. Company collected accounts receivable, amount of $90,000 4. Company hired a new 5. Company made cash sales, amount of $80,000 6. Company paid off accounts payable in the amount of $120,000 7. Company counted inventory at year-end and found that the inventory sold cost $155,000 8. Company paid $26,000 in salaries in cash 9. Company paid $3,000 for interest on the mortgage payable (Noncurrent) 10. Company pays income taxes at a rate of 20%. It uses an income tax payable account now and will pay cash in the future pastry baker. She will start in January 2019 Ignore Depreciation Expense. None will be recorded. Requirements A. Complete direction of the effect: increase or a transaction analysis worksheet and indicate the account, amount and decrease. Put the ending balances in each column. Use the attached worksheet See Transaction Analysis Worksheet available in Canvas. Part Vcontinued B. Prepare jourmal entries for each transaction (if appropriate) Transaction and Accounts Affected Debit Amount Credit Amount (Record on Left) (Record on Right) Journal Entries 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Sales Revenue debit credit Cost of Goods Sold Expe nse debit credit Salaries Expense de bit credit Income Tax Expense de bit credit Interest Expense debit credit Part V-continued Show the closing journal entry E. Transaction and Accounts Affected Debit Amount Credit Amount Journal Entries F. Go back to the T-accounts and post this closing joumal entry. Compute the ending balances in the accounts. Note: You do not have to prepare a trial balance. G. You do not need to prepare a complete income statement for the year ending December 31, 2018. However, please fill in the blanks DDBC Income Statement For Year Ending December 31, 2018 Total Revenues Total Expenses Net Income H. You do not need to prepare a complete balance sheet for the year ending December 31, 2018. However, please fill in the blanks. DDBC Balance Sheet For Year Ending December 31, 2018 Total Assets Total Liabilities Total Stockholders' Equity Total Liabilities and Stockholders' Equity Inc Tx Pay Accts Pay Total Assets PPE Inventory Accounts Invest (Current) Cash $0 $17,000 $336,000 $270,000 $29,000 $5,000 $12,000 $20,000 Beg Bal Trans 1 2 4 5 6 7 8 9 10 Totals Common Stock Mortgage Pay (Non-Current) Retained Earnings Details Total Liabs SE $132,000 $151,000 $36,000 $336,000 Sales Rev CGS Exp Sal Exp Int Exp Inc Tx Exp