The post-closing trial balance of the Pat Callahan Company at December 31, 2006 is shown belo Account No Account Debit Credit 101 Cash $46,000 Investment in Bonds 102 50,000 28,000 103 Accounts Receivable 10 Allowance or Doubtful Account 900 Interest Receivable 105 *24,000 106 Inventory (perpetual 45,000 107 Building life) 108 Accumulated Depreciation-Building 12,000 109 Delivery Truck (5-year life, $3,000 salvage)18,000 110 Accumulated Depreciation-Truck 6,000 200 Accounts Payable 18,000 29,000 201 Notes Payable 202 Wages Payable Income Taxes Payable 203 Common Par Value $1.00 300 301 Retained Earnings 400 01 Interest Revenue 500 operating Expenses 501 ages Expense Depreciation Expense-Building 502 503 Depreciation Expense-Truck 504 Bad Debt Expense 505 Cost of Goods Sold 506 Income Tax Expense *Ending Inventory (12/31/07 $26,000 The following actions took place during 2007. 1. Collected: Accounts Receivable, $25,000 Interest on Bonds $5,000; Cash Sales, S80,000 (Cost of Goods Sold $14,000. 2. Paid: Accounts Payable, $15,000:Notes Payable, $21,000 Income Taxes Payable, $5,000; OperatingExpenses, $37,000. 3. Purchased inventory, $32,000, ofwhich $16,000 was purchased on account. (Assume perpetual inventory). 4. Made sales on account $85,000(Cost of GoodsSold $16,000. 5. On June 30, 2007, purchased a second deliverytruck for $15,000, paying cash. The truck has auseful life of 10 years and asalvage value of $3,000. Instructions a. Journalize each ofthe transactions above ofthe Pat Callahan Company. Some items require more than one journal entry. b. Po entries to the appropriate accounts (You should set up T-account for each account noted on the trial balance) c. Prepare a trial balance after postingthejournal entries. d. Fill invaws on the post-closing trial balance. The post-closing trial balance of the Pat Callahan Company at December 31, 2006 is shown belo Account No Account Debit Credit 101 Cash $46,000 Investment in Bonds 102 50,000 28,000 103 Accounts Receivable 10 Allowance or Doubtful Account 900 Interest Receivable 105 *24,000 106 Inventory (perpetual 45,000 107 Building life) 108 Accumulated Depreciation-Building 12,000 109 Delivery Truck (5-year life, $3,000 salvage)18,000 110 Accumulated Depreciation-Truck 6,000 200 Accounts Payable 18,000 29,000 201 Notes Payable 202 Wages Payable Income Taxes Payable 203 Common Par Value $1.00 300 301 Retained Earnings 400 01 Interest Revenue 500 operating Expenses 501 ages Expense Depreciation Expense-Building 502 503 Depreciation Expense-Truck 504 Bad Debt Expense 505 Cost of Goods Sold 506 Income Tax Expense *Ending Inventory (12/31/07 $26,000 The following actions took place during 2007. 1. Collected: Accounts Receivable, $25,000 Interest on Bonds $5,000; Cash Sales, S80,000 (Cost of Goods Sold $14,000. 2. Paid: Accounts Payable, $15,000:Notes Payable, $21,000 Income Taxes Payable, $5,000; OperatingExpenses, $37,000. 3. Purchased inventory, $32,000, ofwhich $16,000 was purchased on account. (Assume perpetual inventory). 4. Made sales on account $85,000(Cost of GoodsSold $16,000. 5. On June 30, 2007, purchased a second deliverytruck for $15,000, paying cash. The truck has auseful life of 10 years and asalvage value of $3,000. Instructions a. Journalize each ofthe transactions above ofthe Pat Callahan Company. Some items require more than one journal entry. b. Po entries to the appropriate accounts (You should set up T-account for each account noted on the trial balance) c. Prepare a trial balance after postingthejournal entries. d. Fill invaws on the post-closing trial balance