The following is a listing of the accounts of Bob$$s Baubles, Inc. at Dec $31,2002$:

$$Cash $$ $$35,000$

$$Accounts Receivable$10,000$

$$Inventory $(9$ Baubles @ $$5,000$ each$)45,000$

$$Prepaid Rent$2,000$

$$Equipment$450,000$

$$Accumulated Depreciation$150,000$

$$Accounts Payable$15,000$

$$Wages Payable$12,000$

$$Taxes Payable$10,000$

$$Common Stock $(5,000$ shares$)150,000$

$$Retained Earnings$205,000$

During $2003$ the following transactions occurred:

Jan $1$ Paid $12/31/02$ accounts payable balance.

Jan $1$ Borrowed $$100,000.$ The money is to be repaid in five years. Interest on the loan is

$10\%$ and the interest is paid each December $31$st$.$

Jan $2$ Received $12/31/02$ accounts receivable.

Jan $15$ Purchased $20$ Baubles at $$6,000$ each. Paid $30\%$ down and will pay the rest later.

Feb $1$ Sold $24$ Baubles for $$16,000$ each with $40\%$ down $($cash$)$ and the other $60\%$ on account.

Mar $1$ Paid cash for wages of $$36,000.$

Mar $15$ Paid $2002$ taxes.

May $1$ Received cash from customers who bought Baubles on Feb $1,$ $$50,000.$

July $1$ Paid $$30,000$ to creditors $($see Jan $15).$

July $1$ Paid rent, $$8,000($rent is $$2,000$ per month$).$

July $1$ Purchased a one$-$year insurance policy for $$6,000.$

Oct $1$ Paid $$9,000$ advertising for $2003.$

Nov $1$ Issued $1,000$ shares of common stock for $ $$30,000.$

Dec $31$ Paid utility bill for $2003,$ $$12,000.$

Dec $31$ Paid $$40,000$ for wages.

Dec $31$ Paid interest on loan

The Company uses the FIFO inventory system

At Dec $31,2003,$ Bob owed $$10,000$ in wages which had not yet been paid.

The equipment originally cost $$450,000,$ had a ten year life and was expected to be worth $$50,000$

at the end.

The tax rate is $30\%$ and the $2003$ taxes are to be paid in $2004.$

$$At December $31,2003,$ the market price of the stock was $$50$ per share.

Prepare transactions using NAC, BS$,$CF and IS