Wally and Chip started a window washing company on September 1. The following transactions took place from September 1 to year end, December 31.

1. On September 1, Wally purchased 3,000 shares of WWW no par common stock for $15,000 and Chip purchased 1,000 shares of common stock for $5,000.

2. On September 2, the firm borrowed $5,000 from a local bank. The loan has a term of five years year at 6% interest. Annually on the loan date interest for the prior year is due.

3. The firm acquired a used truck for $6,000 on September 3. The truck is expected to last 5 years.

4. The firm purchased window washing equipment for $900 on September 4. The equipment is expected to last 5 years, but firm policy is to expense all equipment purchased for less than $1,000.

5. The firm purchased window washing supplies for $1,500 on account.

6. The firm performed $10,000 of window washing services, all of which was collected in cash.

7. The firm spent $800 in cash for miscellaneous expenses. (e.g. work crew meals, gas, truck service, etc.)

8. The firm paid the $1,500 due for the washing supplies referenced above.

9. The firm sold $60,000 of window washing services. $20,000 was collected in cash with the balance on account.

10. On November 1, the firm received $30,000 cash and signed a contract with the management of Bellingham Tower to wash all the windows once a month for the next 12 months.*

11. The firm paid a cash dividend of $1,000 cash - $750 to Wally and $250 to Chip.

12. The firm incurred miscellaneous expenses of $10,000. ($4,000 was paid in cash with the other $6,000 on account.)

13. On November 1, the firm purchased a one-year liability insurance policy for $24,000. The insurance policy is retroactive to September 1.

14. The firm purchased window washing supplies for $3,500 with cash.

15. Chip was having financial problems so the company lent him $4,000 at 12% on November 1. The $4,000 was due in 6 months and interest will be paid when the note matures.*

16. At year end, Wally and Chip counted all the window washing supplies on hand, the amount was $1,250. Record the necessary journal entry.

17. On December 15, Wally sold 999 of his shares in WWW to Bert for $7,500.

Prepare all the necessary journal entries for WWW, including adjusting entries at December 31. Once complete prepare a balance sheet and income statement, in good form.