Your Company is a calendar year, accrual-basis business that began on Februay 1 of 2022. It is a calendar year company with a year end of December 31 (11 months in total in its first year). For each of the following transactions, analyze the transaction with the spreadsheet (in the cash flows column indicate whether the item is from operations, investing, or financing. Use the final numbers to create a balance sheet in good form on the last tab. [Use the perpetual system for inventory.]

PROVIDE JOURNAL ENTRIES:

1 On February 1, Your Companys board authorized 250,000 shares and issued 12,200 shares of $1 par common stock for $170,800 cash. (Answer using new material.)

2 On February 1, Your Company received $142,500 as prepayment for 15 months of consulting services that will be provided evenly over the contract, beginning in October.

3 On March 1, Your Company paid $36,000 in cash as prepayment for 1 year of rent on an office building, beginning in March.

4 On May 1, Your Companys board authorized 200,000 shares of $50 par, cumulative preferred stock with a 4% coupon rate. It issued 2,000 shares for $100,000

5 On June 1, Your Company purchased merchandise inventory costing $350,000 on credit, 2/10,n/30.

6 Your Company paid for the inventory on day seven.

7 Your Company repurchased 450 shares of its own common stock from an unhappy shareholder for $15 per share.

8 Your Company sold $85,000 of its inventory for $150,000 on account, terms 2/10, net 30. (Several customers)

9 On December 1, Your Company paid $4,000 for cleaning services for December.

10 Your Company collected $95,000 of its accounts receivable. All of the customers received the discount.

11 On December 31, Your Company recorded $8,000 of salary expense. The employees will be paid on January 15, 2023.

12 Record the year-end entry to recognize service income relating to entry 2.

13 Record the year-end entry to recognize rent expense relating to entry 3.

14 Record the warranty expense. Your Company estimates that this expense will be 5 percent of its cost of goods sold.

15 Record the bad debt expense. Your Company estimates that 3 percent of its credit sales will not be collected.