Record the following transactions in the financial worksheet provided in excel. Prepare the Balance Sheet and Income Statement for January 2020. A. Entries 1 7 are to capitalize the company, prepare for operations, and occur prior to December 31, 2019. All entries to capitalize the company will be recorded as of January 1, 2020. The company is scheduled to begin operations on January 1, 2020. Read the transactions carefully.

1. Dennis Becker, entrepreneur, contributes $104,100 of capital in his new company, Becker Electronics, LLC. The company is a wholesale distributor of electronic components. Customers are primarily electronic retailers and large corporate accounts. The company issues stock to Dennis in exchange for his equity contribution.

2. Dennis sells additional shares of company stock to two investors for $100,000 cash ($50,000 each). These shares represent a 25% interest in Becker Electronics.

3. Dennis signs a five-year facility lease agreement for office and warehouse space on December 27, 2019. The scheduled move-in date is January 7, 2020. The space is in an industrial area with excellent access to transportation services. A security deposit of one months lease payment of $8,000.00 is required in advance at time of signing the lease agreement. The monthly lease expense is $8,000 per month, due on the first day of each month. No leasehold improvements are required as part of the lease agreement.

4. Dennis purchases warehouse and office equipment for $36,000 in cash on December 30, 2019. Delivery is scheduled for January 3, 2020. All equipment has an estimated useful life of 8 years, with no residual value. The company uses straight-line depreciation to record the monthly depreciation expense.

5. Dennis decides to borrow $24,000 from a local bank to purchase a company truck on December 31, 2019. Terms are an annual rate of interest of 5%, payable in 60 monthly payments. The estimated useful life is 4 years to record monthly depreciation expense. First payment on the truck is due January 15, 2020.

6. The company purchases inventory to be resold to customers in the amount of $60,000 from a supplier. The inventory is purchased on account. It was delivered on December 31, 2019. Credit terms are to be paid in full in 30 days.

7. The company hired an office manager, and 2 warehouse/shipping employees. Dennis wife and son are also employed by the company. Expected start date for all new hires is Monday January 7, 2020. Employees will be paid bi-monthly on the 15th and last day of the month. No payroll will be paid on January 15th. Payroll on January 31st will cover the period through January 24th.

8. Deposits were made for related utilities (phone, water, sewage, etc.) in the amount $1,500 prior to December 31, 2019.

B. The company is now capitalized and ready to conduct business. Record the first months transactions. The following transactions occur in January 2020.

9. On January 15th the company completes its first sale of inventory for $15,000. The sale was on account and credit was granted to the customer. The cost of the inventory sold was $7,000.

10. The company pays $8,000 for the monthly rent with a check on the first of the month.

11. The company pays the first months payment on the truck. Calculate the payment amount and record the entries to principle and interest. You can use the following website to calculate the payment: http://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx. See the amortization schedule on this website for recording interest expense.

12. The company receives an invoice for $3,000 on January 23rd from the lawyer who worked on the lease agreement. No terms are given. Lawyer invoices are normally due upon receipt.

13. The company receives an invoice for utilities on January 30th for $1,000 due on the 10th of February.

14. The company receives a check in the mail for $10,000 on January 24th as partial payment of the account receivable owed by the customer in entry #9 above.

15. The company pays a partial payment of $30,000 on its account on January 24th for the inventory. Dennis negotiated a partial payment on the inventory. The remainder is to be paid in 15 days.

16. The company paid to an advertising agency for expenses in several venues for $9,000 on January 27th.

17. The company paid salaries and wages during the month of $15,000 on January 31st. C. It is the end of the month and now Dennis must make some entries to record costs not yet on the books and look for invoices from suppliers for expenses incurred in January.

18. At the end of the month Dennis owes employees $6,000 in wages. To be paid in the following month.

19. Record the monthly depreciation expense for Becker Electronics, LLC.

20. Two invoices for expenses incurred in January were received in early February. One was $500 for additional utilities. The other was $800 for expenses to ship the products sold.

21. The company ordered additional inventory to be delivered in February.