Question #2 Cormier Candy Ltd. began operations on January 1, 2015. During 2015, the following transactions occurred:

1. Jan 1st: Issued common shares for cash, $200,000.

2. Jan 5th: Borrowed $12,000 from a bank.

3. Jan 15th: Purchased inventory on credit, $480,000.

4. Feb 2nd: Sold inventory on credit for $650,000. The original cost of the inventory that was sold was $390,000.

5. Feb 28th: Bought office supplies for $2,000 cash.

6. Mar 15th: Collected $580,000 from customers on account.

7. Mar 20th: Paid $440,000 for inventory previously purchased on account.

8. Mar 25th: Bought a delivery vehicle for cash, $37,000.

9. May 31st: Billed a customer $4,000 for goods delivered.

10. Dec 30th: Office supplies costing $1,500 were consumed during 2010.

11. Dec 30th: Paid the rent for the year, $24,600.

12. Dec 30th: Paid utilities expenses, $20,000.

13. Dec 30th: Declared dividends of $6,000, to be paid in January 2011.

14. Dec 31st: Recorded $2,000 of amortization related to the vehicle.

Required: Assuming Cormier Candy Ltd. has a December 31 year-end:

a. Prepare Journal Entries to record each of the above transactions;

b. Prepare a Dec 31, 2015, Trial Balance.

c. From Dec 31, 2015 Trial Balance, prepare Income Statement, Statement of Retained Earnings, and Balance Sheet.