Record all transactions in given pictures format.

Balance Sheet

Income Statement

1. Sell for $2,000,000 cash, 100,000 shares of $6 par value common stock

2. Borrow $1,750,000 cash from a bank

3. Buy equipment for a cash price of $1,700,000

4. Buy "on account" (accounts payable - no cash spent until bills paid) inventory totaling $2,750,000

5. Sell inventory on-hand which cost $1,800,000 for $3,000,000 "on account" (accounts receivable - no cash collected until cusomers pay invoices)

6. Collect $2,250,000 from customers (collect accounts receivable)

7. Pay $2,400,000 accounts payable owed to vendors.

8. Record ("accrue") $150,000 interest expense incurred but not yet due for payment

9. Record $100,000 depreciation expense

10. Pay $250,000 dividends

11. Pay cash wages of $300,000

12. Accrue your bonus of $125,000 due but not yet paid

13. Pay the $150,000 interest previously accrued

14. compute and record income taxes at a 30% rate. Payment due in the future.

15. Compute net income, close income statement and thereby "update" retained earnings.

16. Prepare an Income Statement for the period covered by the above

17. Prepare a Balance Sheet as of the end of the period.

ASSETS Current Assets Show debits as positive amounts, credits as negative amounts LIABILITITES AND NET WORTH Long Term Assets Current Liabilities L. T. Debt Furnitire Short Term Current Long Capital and Accum. Accounts Notes Portion Term stock Land Building Equip Deprec. Pavable Accruals Pavable LID Debt @par Accounts Receivable Net Worth Capital in excess of Par + Cash Inventory Retained Earnings # 1 2 2 3 3 4 5 5 6 7 7 3 8 3 9 10 10 11 11 12 13 12 13 14 14 15 15 16 17 16 17 18 18 19 19 20 20 21 21 Show debits as positive amounts, credits as negative amounts REVENUES EXPENSES Selling General & Other Cost of Administr. Depreciation Interest Sales Income Sales Expense Expense Expense Tax Expense # DESCRIPTION OF TRANSACTION # 1 1 2 2 3 3 4 4 4 5 5 6 6 7 7 8 9 8 9 10 11 10 11 12 12 131 13 14 14 15 15 16 16