The K. Ledecky Company sells Olympic swimming medals. It started its operations in the 20th century. Many years later, the balance sheet for December 31, 2020, showed the following account balances (there were no other accounts listed): Accounts receivable 100, Dividend payable 12, Cash 469, Accumulated depreciation 85, Prepaid advertising 30, Rent payable 7, Accounts payable 100, Retained earnings 287, Loan from bank 38, Inventory 100, Wages payable 5, Paid in capital 500, Loan to ABC 25, PP&E 410, Advances from customers (?).

During 2021 the following transactions occurred: 1. Depreciation expense for the year was $60. 2. Dividend payments were $62. There was no dividend payable at the end of the year. 3. Ledecky purchased $607 worth of inventory and paid its suppliers $706. 4. Total collections from customers were $1,270 and the ending balance of accounts receivable was $120. 5. Costs of goods sold amounted to $611. 6. In addition to the transactions described in items 4 and 5 above, a special sale was made to the customer who paid in advance in 2020 (see December 31, 2020 balances). The selling price was $150 and the costs of the goods sold were $96. The customer paid the remaining balance in cash. 7. Ledecky won many Gold medals in 2021 and expects an increase in promotional campaigns that will result in a sales increase of 35%, starting next year. 8. The employees of Ledecky earned $70 and were paid $65 as wages. 9. Ledecky purchased, in cash, the right to use the trademark iMBA from iCBS for $200. This trademark is amortized using equal annual amounts over 40 years, starting January 1, 2021. 10. Ledecky paid the bank $13: $3 as interest and $10 to reduce the principal. The interest paid equals the interest due to the bank. 11. Ledecky earned, but did not collect, $5 of interest on its loan to the ABC Company. 12. Rent expense for 2021 was $36, while rent payments were $50. 13. $20 of the prepaid advertising were used during 2021.

Required: a. What was the balance of the account Advances from customers on December 31, 2020? b. Record all transactions that occurred during 2021. c. Prepare an Income Statement for the year ended December 31, 2021. d. Prepare a Balance Sheet for December 31, 2021.