This is Financial Accounting.
Please answer both parts clearly.
The following transactions occurred in the order shown in 2019 for a new ﬁrm called ACCO Ltd. (The ﬁscal year is the same as the calendar year.) IV. VI. VII. VIII. Received $8,400,000 cash from investors in exchange for common shares of ACCO Ltd. Borrowed $200,000 cash from The Bank on January 1, 2019. The principal will be repaid in ﬁve years. (See Xll below for the recording of interest.) Purchased merchandise inventory for $400,000 on credit from ordinary suppliers. Sales to customers were $1,000,000 during 2019. 60% of the sales were on credit; the remainder were cash sales. The cost of the inventory for all sales made in (IV) above was $340,000. Received $500,000 cash from customers for the credit sales made in (IV) above. Acquired a building valued at $9,100,000 in exchange for cash of $8,300,000 and $800,000 of common shares of ACCO Ltd. (See XI below for the recording of depreciation.) Paid general and administrative expenses of $136,250 in cash.
IX. By year-end suppliers (III above) were still owed $50,000. Hint: determine how much cash was paid to suppliers. X. The Board declared and paid cash dividends of $55,000. XI. Recorded depreciation expense related to the building (VII above) for the year. Assume the building was acquired on January 1, 2019 and has an estimated useful life of forty years, with estimated salvage value of zero. The company uses the straight-line method. XII. Recorded interest on the bank loan (II above). The interest rate on the bank loan is 6% per year, with interest paid annually on December 31. XIII. Paid income taxes of $75,000. XIV. Received a $10,000 cash deposit from a customer for work to be done in 2020. REQUIRED Part1 Prepare a transaction analysis, e.g., table, worksheet, etc. Use a clear and logical approach. This part of your submission may be handwritten. Part 2 Prepare in proper format a multi-step income statement, a statement of changes in shareholders' equity, and a classiﬁed balance sheet. This part of your submission MUST be typed — NO EXCEPTIONS.
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