Please answer all questions using excel and show your work.

Question 7 There is a new successful firm that is a calendar year, accrual-basis business that began on May 1 of 2021. It is a calendar year company with a year end of December 31 (eight months in total in its first year). Create a balance sheet in good form. Use the perpetual system for inventory. a A B D E F F G On May 1, The Firm board authorized 200,000 shares of $50 par, cumulative preferred stock with a 4% coupon rate. It issued 5,000 shares for $250,000 On May 1, The Firm's board authorized 25,000 shares and issued 5.200 shares of $2 par common stock for $100 per share. (Answer using new material.) On May 1, The Firm paid $36,000 in cash as prepayment for 1 year of rent on an office building. beginning immediately. On June 1. The Firm purchased merchandise inventory costing S680,000 on credit, 2/10,n/30. Shipping was FOB destination and paid in cash. The Firm paid for the inventory in item 4 on day seven. On July 1. The Firm received $417,000 as prepayment for 20 months of consulting services that will be provided evenly over the contract, beginning in July. The Firm sold $375,000 of its inventory for $695,000 on account, terms 3/10, net 30. (Several customers) The Firm collected $465,000 of its accounts receivable. All was collected during the discount period and the discount was applied to all of these payments. On December 1, The Firm paid $4,000 in cash for cleaning services for the year. The Firm repurchased 200 shares of its own common stock from an unhappy shareholder for $105 per share. On December 31, The Firm recorded $8,000 of salary expense. The employees will be paid on January 5, 2022. Record the bad debt expense. The Firm estimates that 5 percent of its credit sales will not be collected. Record the entry to recognize rent expense relating to entry C. Record the warranty expense. The Firm estimates that this expense will be 8 percent of its cost of goods sold. Record the entry to recognize service income relating to entry F. H K L M N N o