The December $31,$ Year $2,$ balance sheet for Shannon's Lamps, Incorporated $($SLI$)$ showed Cash of $$64,000,$ Common Stock of $$24,000,$ and Retained Earnings of $$40,000.$ During Year $3,$ SLI experienced the following accounting events:

SLI purchased merchandise inventory $($lamps$)$ for $$47,000$ cash.

$2$a$.$ SLI recognized revenue from selling inventory for $$52,000$ on account.

$2$b$.$ SLI recognized $$38,000$ of cost of goods sold.

In a year$-$end adjusting entry, SLI recognized $$1,520$ of uncollectible accounts expense.

SLI paid $$14,000$ cash to purchase display equipment. The equipment had a four$-$year useful life and a $$2,000$ salvage value.

SLI recognized depreciation expense associated with the equipment purchased in Event $4.$

On September $1,$ Year $3,$ SLI acquired $$16,000$ cash by issuing a note to the State Bank. The note had a $6$ percent annual interest rate and a one$-$year term to maturity.

SLI recognized accrued interest expense for the note issued in Event $6.$

Required

a$.$ Record the events in T$-$accounts and determine the ending account balances.

b$.$ Prepare an income statement, a balance sheet, and a statement of cash flows.

Complete this question by entering your answers in the tabs below.

Req A

Req B$1$

Req B$2$

Req B$3$

Record the events in T$-$accounts and determine the ending account balances.