Question 2: The following balances appear in the 31st December 2016 Balance Sheet of Shing Company: Cash $40,000, Accounts Receivables $8,500, Inventory $5,300, Property $8,000, Accounts Payable $3,500, Accrued liabilities $700, Common Stock $15,000, Retained earnings $?. The following events occurred during 2017: 1. The company sold $1,300 worth of inventory for the price of $7,000. 2. The company's owner sold 500 common stock to a well-known businessman for the amount of $1,200. On April 1, The Company signed a contract for the purchase of web marketing ads for a period of 12 months. The company paid in advance for the whole period an amount of $3,000. 4. The company purchased, on account, 20 units of inventory for $500 each. 5. On July 1, The Company purchased a vehicle for the CEO for $14,000. The vehicle is depreciated on a straight line basis for 7 years. 6. One of the company's customers prepaid in cash $5,000 for a product the company will supply during 2018. 7. On October 1, The Company took a $30,000 loan from the bank that is due back on December 31 2018. The company paid the bank an amount of $1,000 interest on December 31 2017 for the period from October 1 December 31 2017. 8. At year-end, the company realizes it should create an allowance for doubtful accounts (which did not exist before) for $600. The company's management decided to give its owners a dividend for the total amount of $2,000. The dividend will be paid during 2018. 10. Assume there is no tax expense for the company. Unless mentioned otherwise, assume that the transaction is in cash. The company had no other transactions during the year. Required: A. What was the balance of Retained Earnings on 31 December 2016? B. Record the transactions above using journal entries. C. Prepare the Income Statement for the year ended December 31, 2017. D. Prepare the Balance Sheet as of December 31, 2017