Perfect Pizza had the following account balances at December 31, 2015: During 2016, the following transactions occurred: Purchases of ingredients and supplies (inventory) were $230,000, all on account. Sales of pizzas for cash were $510,000, and sales of pizzas on account were $40,000. The company paid $105,000 for wages and $25,000 for utilities expenses. Payments for ingredients and supplies purchased on account totalled $220,000. Collections from customers for sales on account totalled $50,000. Ingredients and supplies valued at $225,000 were used in making pizzas. A dividend of $15,000 was declared and paid at the end of the year. Information for adjusting entries: At the end of 2016, the amount of rent paid in advance was $1, 500. Wages owed to employees at the end of 2016 were $2, 500. The equipment had an estimated useful life of eight years, with no residual value. The delivery vehicles had an estimated useful life of six years with a residual value of $8,000. Required: Prepare journal entries for transactions 1 through 7. Create new accounts as necessary. Prepare adjusting journal entries for adjustments 8 to 11. Set up T accounts, enter the beginning balances from 2015, post the 2016 entries, and calculate the balance in each account. Prepare a trial balance, and ensure that the total of the debit balances is equal to the total of the credit balances. Prepare a statement of income for 2016. Prepare the closing entries, post them to the T accounts, and calculate the final balance in each account. Prepare a statement of financial position for 2016