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The following transactions apply to Pecan Co. for 2018, its first year of operations: Received $35,000 cash in exchange for issuance of common stock. Secured
The following transactions apply to Pecan Co. for 2018, its first year of operations:
- Received $35,000 cash in exchange for issuance of common stock.
- Secured a $117,000 ten-year installment loan from State Bank. The interest rate is 7 percent and annual payments are $16,296.
- Purchased land for $27,000.
- Provided services for $80,000.
- Paid other operating expenses of $40,000.
- Paid the annual payment on the loan.
Required
- Organize the transaction data in accounts under an accounting equation.
- Prepare an income statement and balance sheet for 2018.
- What is the interest expense for 2019? 2020?
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