33 Module 2 Homework Problem 2-1 Your friend Andy decides to open a business selling cars. He starts with $600,000 of his own money, in exchange for 5,000 shares of stock on January 1, 2019. To help fund the business you loan Andy $100,000 that Andy will pay interest on annually at 10% and he will pay you back in 5 years. During the year he bought 20 cars for $10,000 each. He sold 15 of these for $30,000 each. He also paid wages of 15,000, rent of 10,000, interest on the loan, and advertising of 2,000. Andy also had to put down a security deposit for this 10-year lease of 1,000. On June 1, 2019, Andy also decides to invest a piece of land into his business valued at $40,000 in exchange for 400 shares of stock. At the end of the year Andy owes his employees 1,000 in wages. He paid a dividend to his investors of $2,000. The tax rate is 30%. Andy pays half of 2019 taxes this year and the other half in 2020. Create transactions descriptions, t-accounts and a Balance Sheet, Income Statement and Statement of Owners' Equity