Revenues
Sales Revenue	$146,500
Expenses
Cost of Goods Sold	(62,500)
R & D Expense	(9,100)
Sales Commissions	(3,000)
Marketing Expense	(9,000)
Rent Expense	(5,700)
Other Operating Expenses	(23,000)
Income from Operations	$34,200
Interest Income	400
Income before Taxes	34,600
Income Tax Expense	(8,500)
Net Income	26,100

Assets
Cash	$80,000
Marketable Securities	6,500
Accounts Receivable	20,000
Inventory	25,000
PP&E (net)	34,700
Intangible Assets	10,500
Other Long-Term Assets	15,000
Total Assets	$191,700

Liabilities & Equity
Accounts Payable	$45,000
Notes Payable*	28,500
Unearned Revenue	50,000
Income Tax Payable	4,100
Common Stock	45,000
Retained Earnings	19,100
Total Liabilities & Equity	$191,700

Transactions

1	January 1	Paid $15,700 in cash for costs related to research and development of new products.
2	March 15	Paid last year's income tax liability.
3	April 1	Received $75,000 in cash in advance for services. The services will be provided over the course of 5 months beginning on Dec 1 of this year.
4	April 1	Prepaid $72,000 for rent for the next 12 months and recorded the transaction as an asset.
5	April 1	Paid $26,000 in cash for long-term assets
6	April 5	Purchased inventory for $19,000. Paid $2,000 in cash and recorded an Accounts Payable for the remaining $17,000.
7	May 1	Purchased a patent for $30,500 in cash.
8	May 1	Sold inventory on account for $115,000. The cost of the inventory was $26,000. Also, paid a sales commission on this sale of $8,000.
9	June 30	Received the cash to settle $55,000 of the receivables recorded on May 1.
10a	July 31	Purchased supplies for $15,000 in cash. The accountant accidentally recorded the supplies in the Accounts Receivable account.
10b	July 31	The accountant recorded an adjustment to correct the entry made in 10a (so that the accounts will reflect what should have been recorded ).
11	Sept 30	Borrowed $5,000 from a local bank and signed a 3-year note payable promising to pay 10% interest per year (interest is due and recorded on Dec 31).
12	October 1	Issued 1000 common shares to investors for $50,000
13	October 1	Received $30,000 in cash relating to the Accounts Receivable in transaction 8.
14	October 31	Purchased marketable securities for $9,000 in cash.
15	Dec 1	Employee salaries earned amounted to $21,000. The company paid $11,000 on Dec 1 and the remainder will be paid on Jan 1, Year 2.
16	Dec 31	Income Tax for Year 1 is $4,500. $2,500 is paid this year and the remainder will be paid on March 15 of Year 2.
17	Dec 31	Record the appropriate adjusting entry related to transaction 3.
18	Dec 31	Record the appropriate adjusting entry related to transaction 4.
19	Dec 31	$1000 of supplies are still on hand on Dec 31. Record the appropriate adjusting entry to reflect the supplies used during the year. (Refer to transaction 10.)
20	Dec 31	Record the appropriate adjusting entry related to the note payable described in transaction 11 (assuming interest will be paid in Year 2).

Required Transaction Analysis, Income Statement and Balance Statement.

JUST DO THE TRANSACTION ANALYSIS AS I JUST WANT TO KNOW HOW EACH TRANSACTION LOOKS. THANK YOU