Sweet Cereals Company Balance Sheet Values Dec 31, 2019 (5 in millions) 1,300 1,200 3,900 3,000 2,700 Cash Accounts receivable Inventories Property and equipment, net Other assets Accounts payable Notes payable Paid-in capital Retained earnings Total 1,000 8,300 400 2.400 12.100 12.100 Consider the following summary of transactions for the year 2020 (USD is millions): 1. At January 1, the company wants to buy a Machinery with the value of 30. In order to finance this acquisition, they first issue new stock for a value representing 70% of the Machinery value. Then ther are paying in cash the Machinery 2. On May 1, the company lends 24 to a business partner. The loan will be paid back, together with the interest in one year. The annual interest rate is 4% 3. During the first campaign of sales corresponding to the first half of the year 2020, the company has Sales of 1,500. Howerer, only 25% of the Sales are in Cash, the rest is on credit. 4. On August 1, the company receives a payment of 48 from a customer for which they will offer consultancy for entering into the international food industry. The consultancy will be offered for two years (August 1 2020-August 1 2022) 5. On August 1, the company reduces with 150 its debt with the bank, using cash. 6. On September 1 it is due the rent of the warehouses for the first 8 months of the year, and the amount is 12. However, the company decides to pay 18 in total, by paying in advance the rent for the remaining months of 2020. 7. At September 1, before launching the second sales campaign of the year, the company signs a contract with a prestigious advertising agency, paying 12 in cash. The contract is for 1 year of advertising services that will be offered to our company, for the period September 1, 2020-September 1, 2021. 8. The company realizes the second campaign of sales. Like in the previous campaign, not all the sales were collected into cash, but only 125. In order to construct the joumal entry, take into account that it is known that the value of the Accounts Receivable they have at December 31 of 2020 is 2,600, and there are no other cash collections. 9. As of December 31, the value of the Inventories is 2,600