The hypothetical company XYZ Inc started its operations in 2020. On December 31 2020, it had the following adjusted trial balance: Account Notes Payable Wages Payable Additional Paid In Capital Common Stock at par value A/P PP&E (at cost) Inventory Cash Unearned Revenues Accumulated Depreciation Account Receivables Retained Earnings Balance ($) 20,000 8,000 300,000 60,000 60,000 110,000 62,000 419,000 10,000 10,000 ? 230,000 During 2021 the following transactions occurred: 1. A dividend of $20,000 was declared during 2021. These dividends will be paid in 2022. 2. During the year the company performed and delivered services and billed its clients for $900,000. Collections from customers were $800,000. 3. In addition to the transactions described in items 3 above, products were shipped to the customers who paid $10,000 in advance (see December 31, 2020 balances). The selling price was $80,000 and the customer paid the balance in 2021. 4. The company purchased $350,000 worth of inventory, on account. Payments on accounts payable were $200,000. 5. Miscellaneous expenses in the amount of $24,000 were paid in cash 6. Based on a physical count, inventory balance as of December 31, 2020 was $71,000. 7. The employees earned $200,000 as wages. Cash wage payments to employees were $190,000. 8. Additional PP&E worth $30,000 was purchased in cash. Depreciation for the year equals $10,000. 9. 10,000 shares at par value of $1 were issued and sold for $20 per share. 10. The note worth of $20,000 was paid with an additional Interest expense of $200. 11. The company incurred $24,000 in rent expenses and paid $22,000 of it. 12. The company calculated its tax obligations for 2021. Tax in the amount of $40,000 is due for the entire year of which $30,000 was paid in the previous quarters of 2021. Revenues COGS Wages Expense Depreciation Expense Interest Expense Rent Expense Miscellaneous Expenses Tax Expense NET INCOME