There are no check figures for Part A. Part A: An entrepreneur with a passion for shoes has a new start-up, Shoes for You, Inc. with a calendar year end of December 31, 2020. Complete the Journal Entries for all transactions listed for Shoes for You, Inc. for the first quarter ending March 31, 2020. Be sure to include a date for each journal entry. You do not need to provide explanations for the Journal Entries. The first Journal Entry has been done for you. Solution: Journal Entries: 1 1/2/2020 Cash Common Stock 120,000 points-graded for accuracy and format, including Excel spreadsheet links) 120,000 Transactions: 1 1/2/2020 Issued 12,000 shares of stock to investors consisting of friends and family. Shares were sold at par value of $10 each. 2 1/15/2020 Received a loan of $305,000 from the bank. 3 2/1/2020 Puchased a building for office and retail space for $240,000. They paid 20% down in cash and signed a long-term mortgage note for the rest. 4 2/1/2020 Paid $1,200 in cash to purchase display equipment for the shoe showroom. 5 2/1/2020 The company purchased a six month insurance policy and paid cash in advance of 6 2/3/2020 Purchased shoe inventory on account for $92,500. 7 2/26/2020 Recorded shoe sales to a local basketball team, sold on account for $3,900. 8 3/1/2020 Paid $60,000 of the Account Payable for the shoe inventory to the supplier. company received a cash payment in full from the local basketball team 10 3/31/2020 Shoe sales in cash for February and March were $63,700. 11 3/31/2020 Cost of Goods Sold for the February and March sales (cash and credit) were $22,330. 12 3/31/2020 Salaries and wages expense for February and March combined was $15,300. Of this total, $12,000 was paid in cash and $3,300 will be paid in April. 13 3/31/2020 The company records depreciation monthly. The building has a useful economic life of 40 years and the company uses the straight line depreciation method. 14 3/31/2020 The company records depreciation monthly. The display equipment has a useful economic life of 10 years and the company uses the straight line depreciation method. 15 3/31/2020 Insurance expense for Feb and March is 1/3 of the amount paid in advance. Post the Journal Entries you made in Part A to the appropriate T-Accounts found in Part B. Your T-Account entries must be properly linked to the Journal Entry amounts you entered in Part A. The first T-Account posting has been done for you. ALSO, provide calculations at the bottom of the T-Accts on this worksheet to prove that your Accounting Equation balances. (16 points-graded for accuracy and format, including Your Accounting Equation Check Figures are: Assets of $681,180 = Liabilities of $532,800 + Equity of $148,380. T-Accounts: Assets Liabilities Equity Prepaid Insurance Accounts Payable Salaries & Wages Expense Cash 1 120,000 Common Stock 120,000 1 Building Salaries and Wages Payable Sales Revenue Insurance Expense Accounts Receivable Display Equipment Bank Loan Payable Cost of Goods Sold Depreciation Expense Inventory Accum Depr-P&E Mortgage Note Payable