Question 1 Mr. Ganzel and his family own the "Ganzel Bookstore". Please find the balance sheet for the business from the most recent quarter below: Balance Sheet June 30, 2021 Assets: Cash Accounts Receivable Prepaid Expense Inventories Net PPE Total Assets 7,000 2,000 1,000 6,200 7,000 23,200 Liabilities: Accounts Payable Accrued Expenses Accrued Interest Deferred Revenue Long-term Debt Total Liabilities 1,400 1,500 500 1,300 10,000 14,700 Equity: Total Equity 8,500 Liabilities + SH Equity Check 23,200 Accountants are putting together financial statements for the quarter ended 9/30/2021. The following transactions have occurred during the quarter: The bookstore sold $10,000 worth of books on account. The cost of this inventory was $500. b. The bookstore received $500 in cash from customers who purchased books on account during the prior quarter. A school ordered textbooks from the Ganzel Bookstore for $1,000 /paid cash. The store will deliver the books next quarter. d. On September 30, the bookstore needed to buy a new register. Paid $500 in cash. e. The bookstore received $300-worth of new books from its supplier and received an invoice that it plans to pay next quarter. f The owners paid $1,200 in cash for the lease of their store space: $400 was to pay for the lease for the quarter ended 6/30 (last quarter), $400 the quarter ended 9/30(this quarter), and another $400 for the quarter ended 12/31 (the following quarter). The bookstore was having an outdoor sale event and it started raining: $100/worth of inventory got wet and had to be thrown away Throughout the quarter, the bookstore pays $3,000 in cash in salary to the employees of the store. 1. At the end of the quarter, the accountant recorded interest expense for the loan it has on the books. The interest rate on the loan is 5% per annum. The company will pay cash the following quarter. j. The accountant also recorded depreciation for the quarter. He noted that PPE was orignally purchased for $10,000 and has a 10-year useful life with no salvage value. The accountat reports income tax expense of $2,000. The company pays cash. I. A mid-market private equity firm decides to buy out the business from the Ganzel family. They issue $10,000 of debt on the bookstore's balance sheet and use the proceeds to pay a dividend to the Ganzel family. h Questions: 1. Create a Transaction Table for the quarters transactions. 2. Create a set of journal entries for the quarters transactions, in Journal form (dr,cr form). 3. Create a Balance Sheet for the quarter. 4. Create an Income Statement for quarter. Question 1 Mr. Ganzel and his family own the "Ganzel Bookstore". Please find the balance sheet for the business from the most recent quarter below: Balance Sheet June 30, 2021 Assets: Cash Accounts Receivable Prepaid Expense Inventories Net PPE Total Assets 7,000 2,000 1,000 6,200 7,000 23,200 Liabilities: Accounts Payable Accrued Expenses Accrued Interest Deferred Revenue Long-term Debt Total Liabilities 1,400 1,500 500 1,300 10,000 14,700 Equity: Total Equity 8,500 Liabilities + SH Equity Check 23,200 Accountants are putting together financial statements for the quarter ended 9/30/2021. The following transactions have occurred during the quarter: The bookstore sold $10,000 worth of books on account. The cost of this inventory was $500. b. The bookstore received $500 in cash from customers who purchased books on account during the prior quarter. A school ordered textbooks from the Ganzel Bookstore for $1,000 /paid cash. The store will deliver the books next quarter. d. On September 30, the bookstore needed to buy a new register. Paid $500 in cash. e. The bookstore received $300-worth of new books from its supplier and received an invoice that it plans to pay next quarter. f The owners paid $1,200 in cash for the lease of their store space: $400 was to pay for the lease for the quarter ended 6/30 (last quarter), $400 the quarter ended 9/30(this quarter), and another $400 for the quarter ended 12/31 (the following quarter). The bookstore was having an outdoor sale event and it started raining: $100/worth of inventory got wet and had to be thrown away Throughout the quarter, the bookstore pays $3,000 in cash in salary to the employees of the store. 1. At the end of the quarter, the accountant recorded interest expense for the loan it has on the books. The interest rate on the loan is 5% per annum. The company will pay cash the following quarter. j. The accountant also recorded depreciation for the quarter. He noted that PPE was orignally purchased for $10,000 and has a 10-year useful life with no salvage value. The accountat reports income tax expense of $2,000. The company pays cash. I. A mid-market private equity firm decides to buy out the business from the Ganzel family. They issue $10,000 of debt on the bookstore's balance sheet and use the proceeds to pay a dividend to the Ganzel family. h Questions: 1. Create a Transaction Table for the quarters transactions. 2. Create a set of journal entries for the quarters transactions, in Journal form (dr,cr form). 3. Create a Balance Sheet for the quarter. 4. Create an Income Statement for quarter