Singh Company started business on January 1, 2020. The following transactions occurred in 2020. 1. On January 1, the company issued 10,200 common shares for $255,000. 2. On January 2. the company borrowed $50,700 from the bank. 3. On January 3, the company purchased land and a building for a total of $180,000 cash. The land was recently appraised at a fair market value of $54,000. (Note: Because the building will be depreciated in the future and the land will not, these two assets should be recorded in separate accounts.) 4. Inventory costing $134,000 was purchased on account. 5. Sales to customers totalled $231,000. Of these, $175,000 were sales on account. 6. The cost of the inventory that was sold to customers in transaction 5 was $123,700. 7. Payments to suppliers on account totalled $123,500. 8. Collections from customers on account totalled $154,000. 9. Payments to employees for wages were $56,000. In addition, there was $2.400 of unpaid wages at year end. 10. The interest on the bank loan was recognized for the year. The interest rate on the loan was 6% 11. 12. 22 The building was estimated to have a useful life of 30 years and a residual value of $18,000. The company uses the straight- line method of depreciation The company declared dividends of $7,400 on December 15, 2020, to be paid on January 15, 2021. ING US