Problem 4-2 Bobcat Betty's Ham Sandwich Business, Year 1 - 20X1. It was January 1,20X1 and Bobcat Betty had $20,000 and decided she wanted to become rich. She decided to operate as a corporation, so she filed the necessary papers with the State, put the money in the bank under the company name and issued 200. shares of common stock to herself. On January 1 the company paid $2,000 to rent a cart for one year. During the year the company bought 24,000 ham sandwiches for $1.00 each. The company paid $21,000 cash for the sandwiches and owed $3,000 at the end of the year. The company sold 19,000 sandwiches at $2.00 each. In addition, the company paid salaries of $8,500 and parking fees of $900. At the end of the year, in addition to what the company owed for sandwiches, the company owed $500 in parking fees. To secure a parking spot, the company had put down a $500 security deposit at the beginning of the year. The company kept some of the cash in an interest-bearing account and the bank paid them $200 in interest income during the year. The company issued an additional 60 shares of common stock on March 1st for : $6,000. The tax rate is 40% and taxes are to be paid on March 15th of the following year