Sierra Corporation, which purchases outdoor clothing and equipment and resells it, began business as a merchandising business on October 1, 20x1. The following transactions took place during October. October 1: Owners invested $125,000 cash in the business, in exchange for 125,000 shares of Sierra Corporation S1 par common stock. October 1: Sierra borrowed $20,000 on a 3-year, 6%, note payable from Castle Bank. October 1: Signed a one-year lease on a store. Prepaid $16,500 for 6 months of rent. October 1: Acquired store equipment with a five-year life from Superior Sales for $35,000 cash. The salvage value of the equipment is $5,000. October 1: Purchased inventory for $32,000 on account. Sierra uses a perpetual inventory system. October 2: Hired three new employees. October 4: Paid S6,000 for a one-year insurance policy that will expire next year on September 30. October 9: Sales during the grand opening totaled $25,000 and were made on account. The cost of the merchandise was $15,000. October 13: Received payment for the merchandise sold during the grand opening October 20: Paid $6.750 in salary for October 1st through October 15th payroll. October 25: Purchased inventory on account for $21,200. The cost of the individual inventory items has remained constant. October 27: Paid a $350 dividend. October 31: Sales for the month of October totaled $21.000. All sales were on account. The cost of goods sold for the month remained constant as a percentage of sales. October 31: Utility expense for the month is $335. The bill will be paid in November October 31: Recorded adjusting entries for October for interest, rent, depreciation, insurance and salaries. Required: Prepare journal entries to record the above transactions, determine ending balances in each account, and prepare an October 31, 20x 1 Income Statement, Statement of Retained Earnings and Balance Sheet in good form. Omit Descriptions. Vinthe 4 Sierra Corporation Income Statement For the Month Ended October, 20x1 Sierra Corporation Statement of Retained Earnings For the Month Ended October 31, 20x1 Sierra Corporation Balance Sheet October 31, 20x1 nal Page 4