TTF Co. was incorporated on November 1, 2012.

1. On Nov 1, 2012, TTF Co. issued 50,000 shares of common shares at $100 per share. The

par value per share is $1.

1. On Nov 1, 2012, TTF paid $3,000 insurance for the following six months.
2. On Nov 1, 2012, TTF purchased two equipment for $60,000. The useful life of each equipment is estimated to be 5 years, and TTF uses straight-line depreciation method. (Assuming the residual values are zero).
3. On Nov 1, 2012, TTF borrowed $12,000 from CDP Co. in the form of a 2-year note. The note has an annual interest rate of 10%, and the first interest payment is due on April 30, 2013.
4. e)TTF pays its employees on the last workday of each month. Each month's payroll is $1,000. The last workday in November is Nov 30, 2012, and the last workday in December is Dec 30, 2012.
5. On Dec 1, 2012, TTF provided service to Larry, charging $6,000. Larry paid $1,000 in cash and promised to pay the balance on January 15, 2013.
6. On Dec 7, 2012, TTF received a $4,500 check from Maria for a service that TTF will provide to Maria on Feb 15, 2013.

• Record all journal entries before Dec 31, 2012.
• Record adjusting entries for the year of 2012.
• Record closing entries for the year of 2012.
• Compose 2012 Income Statement.
• Compose the Balance Sheet on Dec 31, 2012.
• How do you derive Cash and Cash Equivalents amount in the balance sheet? (Please respond this with the values you add or subtract i.e equation you use)