Transactions for January, 2020

January 01 Bills Wear Inc. sells $5,000 in stock to Bill.

January 01 Bills Wear borrows $500 from Bills Mom.

January 05 Bills Wear buys wholesale 100 T-shirts for $400 cash.

January 10 Bills Wear pays a company $50 cash for advertising.

January 20 Bills Wear sells 90 T-shirts for $10 each in cash.

January 30 Bills Wear repays Bills Mom $500 plus $5 in interest.

January 31 Bills Wear pays a $100 dividend

Required:

1. Enter transaction using the Accounting Equation.
2. Prepare the financial statements. Assume the year is 2020