a. Set up T-accounts and record the following transactions of the Barker Corporation for the month of March.

(1) Stockholders invest $100,000.

(2) The company buys $19,000 of merchandise on account.

(3) The company pays $11,000 of the amount owed for the merchandise.

(4) One year’s rent is paid, $4,800. The rent applies to the year beginning March 1.

(5) Sales for March, the first month of operations, total $13,300. All sales are for cash. The merchandise sold costs $7,900. Salaries paid in cash to employees during the month are $1,000, and the company owes an additional $300 of wages as of the end of the month.

(6) Dividends of $500 are paid to stockholders.

b. Prepare a balance sheet as of March 31, 20XX.