The KLM company started its operations in 2015. Three years later, the balance sheet for December 31, 2017. showed the following account balances (there were no other accounts listed):

Cash ?

Accounts receivables $129,000

Loan made to the ABC company $35,000

Accumulated depreciation $50,000

common stock $500,000

Accounts payable $161,000

Wages payable $4,000

PP&E $200,000

Retained earnings $304,000

Inventory $49,000

Prepaid rent $12,000

During 2018 the following transactions occurred:

1. Collections from customers were $753,000

2. A machine (PP&E) was purchased for $250,000 all in cash.

3. The total cost of goods sold during the year was $656,000

4. Sales, all on credit, were $777,000

5. Marketing expenses were $25,000 of this amount, $18,000 was paid in cash.

6. The CEO of KLM announced she would resign her position effective June 30, 2018. Market price dropped $1.50 a share.

7. KLM purchased $666,000 worth of inventory, on account.

8. The employees of KLM earned $48,000 as wages. Cash payments to employees were $42,000

9. Payments on accounts payable were $777,000

10. Depreciation expense was $30,000

11. Rent in the amount of $30,000 was paid, in cash, during the year. The Prepaid rent account balance at the end of the year was $3,000

12. The ABC company was supposed to pay KLM $5 as interest for 2017 on its loan; however, due to a strike in the postal service the payment had arrived on January 15, 2018.

13. A dividend of $48,000 was declared during 2017, but was not paid.

14. A long-term loan in the amount of $50 was taken from a local bank.

Required

a. What was the balance of the Cash account on December 31, 2018?

b. Show the effect of each transaction during 2018 on the companys accounts

c. Compute the companys net income for fiscal 2018

d. Compute the balance in the companys retained earnings account as of December 31, 2018.

e. Make a ending balance sheet for fiscal year 2018.