question:

1. record the january 2020 transactions by adding and subtracting amounts in the tows of the following table in a way that the row titals represent the end of the month balances in thr financial statements.

2. explain the main characteristics of the balance sheet and the income statement and the relationship between those two statements.

E During January 2020, the company had the following transactions: Example: Made payments of $4,000 on outstanding accounts payable 1. Sold $2,000 of inventory to customers for $3,000 in cash. 2. Purchased $2,500 of new inventory for cash 3. Sold $3,500 of inventory to customers on account for $5,500. 4. During the month, received $3,500 from customers as payments on their accounts 5. Borrowed $20,000 from the bank and issued stock for $5,000 to purchase land for $25,000 for a 6. Paid employees $2,000 for payroll 5 Required: 6 7 1. Record the January 2020 transactions by adding and subtracting amounts in the rows of the 78 following table in a way that the row totals represent the end of the month balances in the 49 2. Explain the main characteristics of the balance sheet and the income statement and the 50 relationship between those two statements. 51 52 Transact 53 Balance at 12/31/19 Example 1 2. 54 55 56 57 Cash $5,000 (4,000) Formulas Data Review View Help Search Calibri -11AA BIU--- A - te Custom Wrap Text Merge & Center - $ -% 48-99 Delete- Format pboard Conditional Formatas Cell Formatting Table Styles Styles Font Alignment Number Cells -4 X f A D E H 1 K 3 Balance at 12/31/19 Example G Transaction Number 3 1 2 5 6 Total $ 5,000 (4,000) $ 1.000 6,000 6.000 15,000 $ 26,000 15.000 $ 22,000 5 $ 6,000 (4,000) 5 56 57 Cash 58 Receivables 59 Inventory 60 Land 61 Property Plant and Equipment 62 Total Assets 63 64 Accounts Payable 65 Note Payable 66 Common Stock 67 Retained Earnings 68 Total Liabilities and Equity 69 70 Check (must equal zero) 71 72 Income Statement Tople 1 Assignment template 20,000 $ 26,000 w e Home Insert Page Layout Formulas Data Review Company Overview Template - Excel Help Search View Calibri Paste -11AA a-A. BIU HA Custom 2 Wrap Text Merge a Center - Clipboard $ - % -99 Font Conditional Formatas Cel Formatting Table Styles Styles Delete Format Alignment B74 5 Number B D E G H $ 26,000 $ 22,000 A 67 Retained Earnings 68 Total Liabilities and Equity 69 70 Check (must equal zero) 71 72 Income Statement 73 Sales 74 Cost of Goods Sold 75 Payroll expenses 76 Net Income 77 78 79 Requirement 2 80 81 Characteristics of a Balance Sheet 82 83 $ 84 85 B6 Topic 1 Assignment template e W N