Question #1. (40 marks)

Transactions by Tara Inc. for the month of April, 2017

1. Received $70,000 cash and issued shares to the owners

2. Paid $56,000 cash for land

3. Bought $5,180 of office supplies on account

4. Received $9,800 cash from customers for services performed

5. Performed services for customers on account, $4,200

6. Paid cash for expenses: rent, $1,540; employee salary, $1,680; utilities, $560

7. Paid $2,660 on the account payable from Transaction 3

8. Shareholder uses personal funds to remodel home, which is NOT a transaction of the business

9. Received $1,400 of the accounts receivable from Transaction 5

10. Sold land for cash at its cost of $30,800

11. Declared and paid a dividend of $2,940 to the shareholders

Required:

a. Prepare the journal entries

b. Post to the T-accounts in the ledger

c. Prepare a Trial Balance

d. Prepare the income statement for the year and the balance sheet at year-end