[The following information applies to the questions displayed below.] The following transactions apply to Bobs Bike Shop for Year 1, its first year of operations:

Acquired $35,000 cash from the issue of common stock.

Acquired $9,600 of merchandise from Bob Hall, the owner, who had acquired the merchandise prior to opening the shop. Issued common stock to Bob in exchange for the merchandise inventory.

Purchased $85,000 of inventory on account.

Paid $2,800 for radio ads.

Sold inventory for $165,000 cash.

Paid $28,000 in salary to a part-time salesperson.

Paid $65,000 on accounts payable (see Event 3).

Physically counted inventory, which indicated that $28,500 of inventory was on hand at the end of the accounting period.

Cash Merchandise Inventory Beg. bal. Beg. ball End. bal. End. bal Accounts Payable Common Stock Beg. bal. Beg. ball End. bal. End. bal. Sales Revenue Cost of Goods Sold End. bal. End. bal