Pharoah Corporation's balance sheet at December 31, 2021, is presented below. PHAROAH CORPORATION Balance Sheet December 31, 2021 Cash $32,300 Accounts payable $13,600 Inventory 23,800 Interest payable 2,750 Prepaid insurance 6,000 Bonds payable 55,000 Equipment 43,000 Common stock 18,100 Retained earnings 15,650 $105,100 $105,100 During 2022, the following transactions occurred. Pharoah uses a perpetual inventory system. 1. Pharoah paid $2,750 interest on the bonds on January 1, 2022. 2 Pharoah purchased $240,100 of inventory on account. 3. Pharoah sold for $451,300 cash inventory which cost $247,700. Pharoah also collected $27,078 sales taxes. 4. Pharoah paid $227,800 on accounts payable. 5. 9 6. The prepaid insurance ($6,000) expired on July 31. On August 1, Pharoah paid $12,000 for insurance coverage from August 1, 2022, through July 31, 2023.