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Problem 1:_(use the worksheet provided) Brenda Baker has recently quit her job in order to start a business consulting corporation. She's convinced her family to invest, and has decided the following accounts are necessary to start accounting for the transactions of the new company: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Capital Stock, and Retained Earnings. You are to set up the preceding accounts in a column format and record the following transactions for the month of January 2021. After entering the transactions total all columns and check for proper balance. a) Brenda sold $19,000 worth of capital stock for cash and opened a checking account in the name of the business, Baker Company. b) Purchased $1,900 worth of supplies on account. c) Purchased equipment for a total of $12,000 by paying 30% down and putting the rest of what was owed on an account payable (Hint: 3 columns are involved here) d) Provided consulting work (earning Service Revenue) to cash customers for $5,950. e) Paid $1,900 on account to the supply company from (b), above. f) Billed customers for providing consulting services, $2,850. g) $2,790 worth of salaries for January were paid. h) Received a utility bill for January of $600, to be paid next month in February. i) Collected $2,750 on account. j) An inventory of supplies shows $310 worth remaining in the supply room. k) The company paid stockholders $400 in dividends. Cash + Acct Rec + Supplies + = Acct Pay + G.Stock + Ret Ergs R/E/D? Acct Rec - Accounts Receivable, an asset." " is a blank for you to fill in with the asset a problem might have such as "truck" or "equipment". Acct Pay - Accounts Payable, the only liability account R/E/D? means Revenue, Expense, or Dividend? Anything going into Retained Earnings must be one of these. If you put an addition in Retained Earnings, you must write "Revenue" in the R/E/D box next to it. If you put a deduction (subtract) from Retained Earnings, you must call your entry an expense or a dividend. Bo specific on expenses, e.g.: "Salary Expense" or "Utility Expense" Every transaction must balance mathematically, no exceptions. A transaction involving accounts on opposite sides of the equal sign must either both be added or both sub-tracted. Transactions on the same side of qual sign (like giving up cash to buy supplies) must have opposite signs (t.. or .. +) F I Problem 2: Using the columns and results from Problem 1, above, produce the following January 31, 2021 statements in proper form (with three-line headings) for Baker Company: a) Income Statement b) Statement of Retained Earnings c) Balance sheet The following changes for ABC Company occurred during 2021: Assets 1 Liabilities $44,000 + (Capital Stock + Retained Earnings) $40,000 ?? January 1 $170,000 221,000 December 31 59,000 40,000 ?? Assume that during 2021, no additional stock was sold and $16,500 was paid in dividends. Determine the net income (or loss) for ABC for the year ending December 31, 2021, showing your calculations

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