Sage hill blance sheet

cash $72,000$

inventory $73,800$

prepaid insurance $13,440$

Equipment $91,200$

accounts payable $33000$

interst payable $6000$

bonds payable $120,000$

common stock $60000$

retained earnings $31,440$

total $250,440$

During $2022,$ the following transactions occurred. Sage Hill uses a perpetual inventory system.

Sage Hill paid $$6,000$ interest on the bonds on January $1,2022.$

Sage Hill purchased $$578,640$ of inventory on account.

Sage Hill sold for $$1,152,000$ cash inventory which cost $$633,600.$ Sage Hill also collected $$69,120$ sales taxes.

Sage Hill paid $$552,000$ on accounts payable.

Sage Hill paid $$6,000$ interest on the bonds on July $1,2022.$

The prepaid insurance $($$$13,440)$ expired on July $31.$

On August $1,$ Sage Hill paid $$24,480$ for insurance coverage from August $1,2022,$ through July $31,2023.$

Sage Hill paid $$40,800$ sales taxes to the state.

Paid other operating expenses, $$218,400.$

Redeemed the bonds on December $31,2022,$ by paying $$115,200$ plus $$6,000$ interest.

Issued $$216,000$ of $8\%$ bonds on December $31,2022,$ at $103.$ The bonds pay interest every June $30$ and December $31.$

Adjustment data:

Recorded the insurance expired from item $7.$

The equipment was acquired on December $31,2021,$ and will be depreciated on a straight$-$line basis over $5$ years with a

$$7,290$ salvage value.

The income tax rate is $30\%.($Hint: Prepare the income statement up to income before taxes and multiply by $30\%$ to compute

the amount.$)$