The following items summarize the company's transactions for the month of April:

1. Purchased merchandise on account at a total cost of $67,500 and placed it in inventory.

2. Purchased an electric warehouse truck on account at a cost of $8,000.

3. Sold merchandise on account for $91,000; cost, $57,500.

4. Collected $75,000 on accounts receivable.

5. Received invoices covering telephone service, electricity, and other services bought and used during April, $5,700 (credit Accounts Payable).

6. Recorded employees' salaries for the month of April, $14,000.

7. Rented a small storeroom in a nearby building for 12 months, beginning April 1, 20x1, at a monthly rental of $550. Paid six months' rent in cash.

8. Paid $91,700 on accounts payable and $14,000 in salaries to employees.

9. Calculated depreciation for the month of April: equipment, $800; building, $250.

10. The board of directors declared a dividend in the amount of $2,500 to be paid to shareholders in cash on May 15, 20x1.

a. Set up T-accounts for the items shown on the balance sheet and enter the March 31 balances. Set up additional T-accounts, as required, and post the transactions that took place in April.

II. Freemont hardware Store, Inc., had the following balance sheet on March 31, 20x1: FREEMONT HARDWARE STORE, INC. Balance Sheet March 31, 20x1 Assets Liabilities & Owners' Equity Current assets: Cash Accounts receivable Merchandise inventory Total current assets Current liabilities: Salaries payable Accounts payable $1,000 93,000 $ 55,000 120,500 108,500 284,000 Total current liabilities 94,000 Plant assets: Land Building Equipment Total $ 20,000 110,000 29,000 Owners' equity: Capital stock $260,000 Retained earnings 89,000 Total owners' equity 159,000 349,000 Total assets $443,000 Total Liabilities & owners' equity $443,000