Problem 4-3 Brayden has decided to start a new business called Brayden's Bodacious Biffs, Inc. in January of 20X0. He started the company with a $35,000 contribution and issued himself 3,500 shares of common stock in return. The company also borrowed $40,000 from the bank, with $10,000 annual principal payments and 10% interest payments due at the end of each year. The company then purchased a computer for $5,000. The computer has a 5 -year estimated life and no salvage value. During the year the company purchased 120 junk cars for $600 each and sold 90 cars for $1,300 each. The company paid $6,500 for 13 months' rent and $18,000 on wages. At the end of the year, the loan payment was paid (principal and interest). The company owed employees $800 in wages at the end of the year. The tax rate is 30% and taxes will be paid in 20X1. Prepare Journal Entries, T-accounts and financial statements
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