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