Problem 8-1 Module 8 Homework Charleigh Co., purveyor of fine, fine things, had the following balances at December 31, 20X0: Cash Accounts Receivable Allowance for doubtful accts Inventory Equipment Accumulated Depreciation-Equipment Land Patent Accounts Payable Salary Payable Rent Payable Taxes Payable Long-Term Debt Common Stock ($1 per share) Retained Earnings 62,000 60,000 1,000 45,000 (1 thing) 190,000 60,000 50,000 20,000 42,000 4,000 2,000 2,000 80,000 90,000 146,000 During 20X1 the following transactions occurred: Jan 1, Mar 1, April 15, May 1, May 15, July 1, July 1, Aug 1, Sept 1, Oct 1, Dec 1, Dec 31, received all beg A/R and paid all Beg A/P bought 2 things for $60,000 each, (Paid 25% down and rest payable in one year) paid year 20X0 taxes payable sold one thing for $120,000 (received 3/4 down and the rest in one year)olden bought 1 thing for $80,000 (Paid 25% down and rest payable in one year) company wrote off $600 in bad debts sold one thing for $160,000 (received 75% down and the rest will be paid in one year) purchased piece of equipment for $10,000 cash. Sold 60,000 shares of common stock for $60,000 Purchased a piece of land for $50,000 declared and paid $.20 per share dividend. paid an annual payment on long term debt- $28,000. Of that amount, $8,000 was for interest and $20,000 was for principal. During the year the company paid 15 months' rent of $15,000. Also during the year the company paid salaries of $12,000 in cash, and at the end of the year they owed $3,000 for salaries. Depreciation for the year is $10,000. The tax rate is 30% and during the year the company paid 50% of 20X1 taxes. The company uses the FIFO inventory system. The company estimates that 3% of its receivables will ultimately be uncollectible. Journalize the above transactions and post them to T-Accounts. Prepare any necessary adjustments. Prepare a P&L, Statement of Owners' Equity, Balance Sheet and Cash Flow Statement for the year 20X1.