SHOW WORK AND FORMULAS FOR THUMBS UP

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XYZ Corporation bad revenues of $200,000 in its first year of operations. The company has not collected on $30,000 of its sales and still owes $25,000 on $70,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $35,000 in salaries. Owners invested $20,000 in the business and $30,000 was borrowed on a five-year note. The company paid $3,000 in interest that was the amount owed for the year, and paid $8,000 for a two-year insurance policy on the first day of business. Compute the cash balance at the end of the first year for XYZ Corporation. (ignore income taxes) Compute the accrual based income for first year for XYZ Corporation. (Ignore income taxes) On January 1, 2022, Mary and John formed a computer sales and service company in Newcoville, Texas, by investing $90,000 cash. The new company, M&J Sales and Service, has the following transactions during January 1.Pays $6,000 in advance for 3 months' rent of office, showroom, and repair space. 2.Purchases 40 personal computers at a cost of $1,500 each, 6 graphics computers at a cost of $2,500 each, and 25 printers at a cost of $300 each, paying cash upon delivery 3.Sales, repair, and office employees earn $12,600 in salaries and wages during January, of which $3,000 was still payable at the end of January 4.Sells 30 personal computers at $2,550 each, 4 graphics computers for $3,600 each, and 15 printers for $500 each; $75,000 is received in cash in January, and $23.400 is sold on a deferred payment basis. 5.Other operating expenses of $8,400 are incurred and paid for during January: $2,000 of incurred expenses are payable at January 31. Instructions (a) Using the transaction data above, prepare (1) a cash-basis income statement and (2) an accrual- basis income statement for the month of January (b) Using the transaction data above, preparo (1) a cash-basis balance sheet and (2) an accrual-basis balance sheet as of January 31, 2022