1. GCC Note: please see the textbook for the description of the company A. Create Dr/Cr style journal entries for these events: a. Buys a car to refurbish for $18,000 plus $ 100 for delivery to GCC's shop. (All of this is inventory). GCC pays for the car on a credit card and pays the transportation fee in cash. b. Works on the car (in its one-bay, one-worker shop) for 3 days, during which time no expenses are paid (except as explicitly stated otherwise), and: 1) Its refurbishing worker's daily salary is $200 2) The CFO's daily salary is $400 3) The accounting staff daily salary is $220 4) There are two people in the sales team with a daily salary of $80/person 5) GCC's shop rent and utilities cost is $40/day, the shop is where the refurbishment takes place. 6) The car's AC unit is broken by accident, making it completely worthless. The estimated cost of the unit is $500 7) A new AC unit for the car is purchased for $500 on account, i.e. GCC is invoiced for the purchase C. At the end of the third day, GCC sells the car for $30,000, receiving $20,000 in cash and an interest-free note for the remaining $10,000. B. Prepare a highly-itemized Income Statement for the period (without using COGS or SG&A) C. Did the company profit during the period of this problem? Why or why not? D. Prepare another Income Statement for the period, aggregating everything you can into COGS and SGA. E. During the period, has the company's cash increase or decreased? F. Support your answer to E with Operating portion of a Direct Method Cash Flow Statement 1. GCC Note: please see the textbook for the description of the company A. Create Dr/Cr style journal entries for these events: a. Buys a car to refurbish for $18,000 plus $ 100 for delivery to GCC's shop. (All of this is inventory). GCC pays for the car on a credit card and pays the transportation fee in cash. b. Works on the car (in its one-bay, one-worker shop) for 3 days, during which time no expenses are paid (except as explicitly stated otherwise), and: 1) Its refurbishing worker's daily salary is $200 2) The CFO's daily salary is $400 3) The accounting staff daily salary is $220 4) There are two people in the sales team with a daily salary of $80/person 5) GCC's shop rent and utilities cost is $40/day, the shop is where the refurbishment takes place. 6) The car's AC unit is broken by accident, making it completely worthless. The estimated cost of the unit is $500 7) A new AC unit for the car is purchased for $500 on account, i.e. GCC is invoiced for the purchase C. At the end of the third day, GCC sells the car for $30,000, receiving $20,000 in cash and an interest-free note for the remaining $10,000. B. Prepare a highly-itemized Income Statement for the period (without using COGS or SG&A) C. Did the company profit during the period of this problem? Why or why not? D. Prepare another Income Statement for the period, aggregating everything you can into COGS and SGA. E. During the period, has the company's cash increase or decreased? F. Support your answer to E with Operating portion of a Direct Method Cash Flow Statement