The following transactions apply to Pecan Company for Year $1,$ its first year of operations:

Received $$35,000$ cash in exchange for issuance of common stock.

Secured a $$109,000$ ten$-$year installment loan from State Bank. The interest rate is $6$ percent and annual payments are $$14,810.$

Purchased land for $$21,000.$

Provided services for $$115,000.$

Paid other operating expenses of $$47,000.$

Paid the annual payment on the loan.

Required

a$.$ Organize the transaction data in accounts under an accounting equation.

b$.$ Prepare an income statement and balance sheet for Year $1.$

c$.$ What is the interest expense for Year $2?$ Year $3?$

Complete this question by entering your answers in the tabs below.

Req B Inc

Req B Bal

Stmt

Sheet