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In: Accounting14)a. Shelby Co. has common stock of $2,000 and retained earningsof $5,000 at the...14)a. Shelby Co. has common stock of $2,000 and retained earningsof $5,000 at the beginning of the year. During the year, thecompany earned revenues of $10,000 on account; incurred operatingexpenses of $6,500; collected $8,000 of accounts receivable;borrowed $20,000 from a bank; obtained $8,000 of cash from ownersfor stock and paid $4,500 of cash to the owners as dividends. Howmuch is the ending balances of common stock and retained earnings___________ and _______________ .b. Henderson Co. purchased $800 of office supplies but only has$200 left over on 1/31/xx. What is the correct end of periodadjustment journal entry?c. LNJ Co. owns equipment costing $120,000. If the salvage valueis estimated to be $4,000, the estimated useful life is estimatedto be 5 years and the straight-line method is used to depreciateassets make the journal entry for the first full year ofdepreciation and determine the asset’s book value at the end ofyear two.