Use T-accounts to record the 14 transactions noted below for this new start-up company.Record all entries affecting the income statement into Equity since there are no separate T-accounts set up for the individual income statement accounts.A T-account form for you to use is provided as a separate attachment for you to print out and post these transactions.

Once all transactions have been posted, populate thenet ending balance for each accountfor the accounts listed below. These are the answers you will post to this online assignment.

Transactions:

1. New company start up; Owners invest $100,000 to buy shares from company.
2. Company buys factory equipment for $20,000; Payment terms are net 30 days; Asset life = 5 years and will be depreciated in the future using straight line depreciation.
3. Company buys inventory for $100,000; Payment terms - 50% @ purchase; 50% net 30 days.
4. Company borrows $50,000 from bank due in 5 years.
5. Company generates sales of $25,000 with a product cost of $40,000; Customer payment terms are net 30 days.
6. Company records warranty expense of $5,000 to establish a warranty reserve for potential future claims related to product sold this month.
7. Company pays supplier for factory equipment purchased last month (ref. item 2 above)
8. All customers pay company for sales generated last month (ref. item 5 above)
9. Company pays suppliers for inventory purchased last month (ref. item 3 above)
10. Company generates sales of $15,000 with a product cost of $10,000; Customer payment terms are net 30 days.
11. Company records warranty expense of $2,000 to establish a warranty reserve for potential future claims related to product sold this month.
12. Company records a bad debt receivables reserve of $2,000 for potential uncollectible receivables.
13. Company records first month of depreciation expense for factory equipment purchased last month (ref. item 2 above). Round to the nearest whole $ amount.
14. Company buys inventory for $15,000; Payment terms net 30 days.

Note: A T-account table is provided in Blackboard for you to use to assist you in calculating the answers to this assignment. After working through the T-accounts, the net balances for each of the Balance Sheet accounts listed belowmust bepopulated/answered in the areas noted below:

Cash

Net Receivables

Inventory

Net Fixed Assets

Total Assets

Accounts Payable

Other Accrued Liabilities

Debt

Stockholders' Equity

Total Liabilities & Stockholders' Equity