We completed journal entries for (a)-(f) in class. Your assignment for Problem Set 2 is to complete the bolded section at the bottom of the page: record journal entries (g)-(k), compile the income statement and balance sheet, and compute the operating margin and net profit margin. This Problem Set is due at the beginning of class on Thursday, 9/28/17. Late submissions will NOT be accepted. You may work in groups of up to three people; all group members must submit individual assignments. Please write your name and your group members' names on your Problem Set. (a) In December, we decide to start a competitor to Chipotle. We contribute $100 to the busines (b) On Jan 1, we rent a building for $100 (pay for full year's rent in cash) (c) on Jan 31, we borrow $200 from the bank. The loan is due in 18 months and bears a 6% annual interest rate payable every six months Note: the loan was obtained on 1/31/17 and the quarter ends 3/31/17. When computing the interest expense, note that TWO months have elapsed (i.e., interest accrues for two months during the first quarter) (d) We buy kitchen equipment for $50 and tables, chairs & furnishings for $50. We assume that the kitchen equipment, tables, & chairs will have a useful life of 10 years (e) Buy ingredients for 50 burritos: rice for $5, beans for $10, and tortillas for $20 (f) We open the store and sell 20 burritos for $5 each during the quarter At the end of March, we want to evaluate the profitability of the business. Assume that we set our pay at $60 annually, but we don't expect to cut ourselves a check until next quarter. We make the necessary adjusting entries for (g) wages, (h) depreciation, (i) rent, i) interest, (k) taxes (assuming a 30% tax rate), compile our income statement and balance sheet, and compute our operating margin and net profit margin