The accounting staff at Moonbeam Enterprises prepares monthly financial statements. At the end of April 2010 the company had the following account balances: Land $45,000 Notes payable $33,000 Merchandise inventory $12,480 Buildings $50,000 Cash $10,360 Contributed capital $38,770 Retained earnings, April $46,070 Cost of goods sold $15,050 Sales revenue $26,000 Supplies expense $1,300 Income tax expense $1,060 Wage expense $1,500 Insurance expense $550 Interest expense $900 Required Prepare an income statement and balance sheet in good form. For each statement, use a three-line heading on the statement that includes:(a) the name of the company, (b) the name of the statement, (c)the appropriate time period or date. 2. Indicate the effects of the following transactions on the balance sheet equation, using the format: Transaction Assets = Liabilities + Shareholders equity a. Issued 20,000 shares of $0.10 par value common stock for $100,000. b. Acquired equipment costing $7,500 for a cash payment of $700 with the balance payable over the next five years. c. Paid $1,000 for rent for the next two months. d. Completed a consulting job and invoiced the client for $5,000, payable in 30 days. e. Ordered office supplies for the office, totaling $225. f. Purchased a three-year fire insurance policy and pays in advance $3,000. g. Received payment from the client for services rendered in (d) above. 3. The following data was obtained from the inventory records of Jeffrey Company for the month of June: June 1 Beginning inventory 2,000 units @ $2 each June 10 Purchased 1,000 units @ $3 each June 14 Purchased 300 units @ $4 each June 20 Purchased 500 units @ $5 each June 30 Sold 2,200 units Instructions: Calculate the costs of goods on June 30, using a. LIFO valuation method b. FIFO valuation method c. Weighted average valuation method 4. Best Products uses the balance sheet approach to estimate uncollectible accounts expense. At year-end an aging of the account receivable produced the following classifications: Not Yet Due $80,000 1 30 days past due $32,000 31 60 days past due $10,000 61 90 days past due $12,000 Over 90 days $3,000 Total $137,000 On the basis of past experience, the company estimated the percentages probably uncollectible for the above five age groups to be as follows: Group 1, 1%; Group 2, 3%; Group 3,10%; Group 4; 20%; and Group 5, 50%. The Allowance for Doubtful Accounts showed a balance of $2,200. Instructions: a. Calculate the total estimated amount of uncollectible debts based on the above classification by age group. b. Determine amount needed to increase the Allowance for Doubtful Accounts to the proper amount