Required 1. Using the information presented in Exhibit 1, prepare the appropriate accounting journal entries. Note that for a specific event that recurs several times during the year, one journal entry for its total amount that year should be made. 2. From the work performed in question 1, prepare a balance sheet and income statement for CUCTC as of the end of its first year of operations. 3. What additional information does Norris need to ask Hopkins about and why before declaring the financial statements, prepared in question two above, final? Exhibit 1 Colorado & Utah Canyons Tour Company Panel A: Summary of current year business events from the CUCTC checkbook register 1. Ron Hopkins Chablished CUCTC and purchased 1,001) shares of its stock, buying all 1,000 shares for $60,000, thus becoming the founder and sole owner of the company 2. At the beginning of the year, Hopkins purchased, with $22,000 cash, quality cross-country skis, ropes, snowshoes, and backpacks, all of which would be used on the various tours for at least a couple of years. 3. On January 2, Hopkins paid $9,000 for 18 months of business liability insurance. 4. Hopkins paid $2,000 to a local law firm for setting up the company. 5. Hopkins acquired eight used snowmobiles, paying $20,000 cash and signing a $30,000 note dated February 1 that was payable to the High Mesa Equipment Company. The note's principal was due in full on its four- year anniversary date. It carried an annual interest rate of 4%, and interest was owed at the end of each month. High Mesa had insisted on a direct bank account withdrawal arrangement with CUCTC. 6. Recurring payments to subcontracted tour guides and helpers totaled S52,000 for the year. 7 The check register showed a total of $165,000 collected from customers for various tours. All tours were prepaid in full at the time of reservation. As of December 31, Norris aseertained that $3,600 of the $165,600 was for trips scheduled carly in the new year. At the end of every month, there had been a $3.000 check disbursed to Hopkins with salary as the notation. 8 9. At the beginning of every month there had been a $1,500 check issued for the rental of the barn from which CUCTC operated. 10. There were checks made out to Ute Recreational Equipment Inc. for ATV rentals several times during the