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$1.$ Journalize all the transactions below for a business $($Precious Purses Inc.$)$ that sells discount purses and clothing that started up in January $2018.$

$2.$ Review and post to T$-$accounts for each financial statement account $($e$.$g$.,$ cash, revenue, accounts payable$)-$ this will be done automatically if you use this template.

$3.$ The Trial balance should also be prepared automatically $($make sure you have made all the adjusting entries$)!$

$4.$ Prepare the following financial statements $($at or for the period ending Dec $31,2018)$:

A$.$ Statement of Financial Position $($Balance Sheet$)$

B$.$ Statement of Comprehensive Income $($Income Statement$)$

C$.$ Statement of Changes in Equity $($Statement of Retained Earnings$)$

D$.$ Statement of Cash Flows $($Cash Flow Statement$)$

$5.$ Close the journal entries for the year. Use Z as your transaction letter.

Transactions:

Date # Description

JAN A You put $$500$K into your business, which is a corporation.

JAN B Received $$500$k as a five$-$year loan from the bank in the form of a notes payable, at a $5\%$ interest rate starting in January. Interest is to be paid at the end of the year. The loan principal is to be paid in equal installments over five years at the end of each year.

JAN C Purchased $$300$K of inventory on account.

FEB D Prepaid for warehouse rent at the beginning of the month $-$ $$60,000$ for twelve months.

FEB E Paid down $$50$K of accounts payable.

FEB F Sold purses for $$70$K with a gross margin of $35\%.$ The customer paid with $$30$K in cash, the rest on account.

FEB G Purchased $$10$K of supplies with cash.

MAR H Received $$70$K of cash in advance for a clothing monthly delivery service to be provided over the next $12$ months.

MAR I Purchased equipment for $$100$K with cash.

APR J Sold $$120$K worth of goods at a gross margin of $50\%.$ All proceeds were in cash.

APR K Sold the equipment for $$110$K$,$ receiving cash.

MAY L Purchased inventory for $$100$K on account.

MAY M Sold $$100$K worth of goods at a gross margin of $75\%.75\%$ of proceeds were on account, the rest in cash.

JUL N Purchased $$75$K of inventory on account.

AUG O Paid down $$75$K of payables.

OCT P Collected $$70$K in accounts receivables.

DEC Q Had marketing expenses of $$7\mathrm{.}5$K during the year and sales expenses of $$20$K$.$ All of these expenses were paid in cash.

DEC R Total cash wages paid during the year were $$50$K$.$

DEC S Delivered on $$50$K of services that were already paid for $($from transaction H$)$ at a gross margin of $50\%.$

DEC T It is now Dec $31,$ and are preparing financial statements for the year end.

Perform any remaining accruals$/$adjusting entries that occurred from Jan to Dec $31,2018.$ $$1$K in wages outstanding remain on Dec $31,2018$ and the ending supplies balance was $$4$K$.$ $$3$K of dividends were declared but not paid before the end of December. Remember that transaction S was already adjusted for transaction H$.$

DEC U Your tax rate on earnings is $30\%.$ Taxes remain unpaid at the end of December.

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