Exercise 1:The following is selected financial information for Affiliated Company as of December 31, 2011: liabilities, $34,000; equity, $56,000; assets, $90,000.RequiredPrepare the balance sheet for Affiliated Company as of December 31, 2011.Exercise 2:Prepare general journal entries to record the transactions below. Determine the ending balance ofcash.a. Macy Dexter, owner, invested $12,750 cash in the company.b. The company purchased office supplies for $375 cash.c. The company purchased $7,050 of office equipment on credit.