The Ant Company was incorporated on April 1, 20X1. Ant had 12 holders of common stock. Jake Ant, who was the president and CEO, held 56% of the shares. The company rented space in chain discount stores and specialized in selling running shoes. Ant's first location was a store in Oakbrook Mall. The following events occurred during April: a) The company was incorporated. Common stockholders invested $150,000 cash. b) Purchased merchandise inventory for cash, $90,000. c) Purchased merchandise inventory on open account, $10,000. d) Merchandise carried in inventory at a cost of $45,000 was sold for $160,000, $50,000 for cash and $110,000 on open account. Ant carries and will collect these accounts receivable. e) Collection of a portion of the preceding accounts receivable, $30,000. f) Payments of a portion of accounts payable, $9,000. See transaction c. g) Special display equipment and fixtures were acquired on April 1 for $36,000. Their expected useful life was 48 months with no terminal scrap value. Straight-line depreciation was adopted. This equipment was removable. Ant paid $9,000 as a down payment and signed a promissory note for $27,000. h) On April 1, Ant signed a rental agreement with Oakbrook Mall. The agreement called for rent of $900 per month, payable quarterly in advance. Therefore, Ant paid cash on April 1. i) The rental agreement also called for a payment of 5% of all sales. This payment was in addition to the flat $900 per month. In this way, Oakbrook Mall would share in any success of the venture and be compensated for general services such as cleaning and utilities. This payment was to be made in cash on the last day of each month as soon as the sales for the month were tabulated. Therefore, Ant made the payment on April 30. j) Wages, salaries, and sales commissions were all paid in cash for all earnings by employees. The amount was $52,000. k) Depreciation expense for April was recognized. See transaction g. 1) The expiration of an appropriate amount of prepaid rental services was recognized. See transaction h.