VMX Corp. began its operations on January $1,20$X$1.$ The company had the following transactions during $20$X$1$:

In January, the owner of the company invested $$100,000$ to obtain $100,000$ shares of the company's common stock $($no par value$).$

In January, the company paid $$40,000$ for a computer server. The company estimated that the computer server has a useful life of $8$ years with no residual value.

On March $1,$ the company obtained a $1-$year loan of $$40,000$ with interest rate of $12\%.$ Interest on the loan is due on the due day of the loan.

All inventory purchases were made on account. On January $1,20$X$1,$ the company had no inventory on hand. During $20$X$1,$ cash payments to inventory suppliers totaled $$17,200,$ and the company still owed its suppliers $$2,800$ on December $31,20$X$1.$ The cost of inventory at year$-$end was $$5,000.$

The company received cash payment of $$68,000$ from its customers, including sales in cash of $$61,500.$ On December $31,20$X$1,$ customers owed a total of $$3,500$ to the company.

Payment of wages and salaries totaled $$22,000$ for the year. As of December $31,20$X$1,$ the company owed its employees $$8,000.$

Other operating expenses totaled $$7,500$ for the year and were all paid with cash when incurred.

In December, the company declared dividends of $$0\mathrm{.}05$ per share, payable in March of $20$X$2.$

Income taxes for $20$X$1$ are due in April of $20$X$2.$ The income tax rate is $30\%.$

Requirements:

Use an Excel spreadsheet to record the journal entries for all transactions listed above and their associated accounting adjustments. Perform closing and trial balance.

Prepare a properly formatted income statement for VMX Corp. for the year ended on December $31,20$X$1.$