A company has the following transactions during the year ended December 31, 2022:

1. On January 1, 2022, the company purchased a machine for $200,000, which has an estimated useful life of 5 years and no residual value. The company uses the straight-line method to depreciate its machinery.
2. On April 1, 2022, the company purchased raw materials for $50,000, which were used to manufacture finished goods.
3. On June 1, 2022, the company paid $10,000 to advertise a new product.
4. On July 1, 2022, the company paid a six-month rent of $15,000 in advance.
5. On September 1, 2022, the company sold finished goods for $100,000, which had a cost of goods sold of $70,000.
6. On December 31, 2022, the company's accountant recorded an adjusting entry for the annual depreciation of the machine.

Required:

a) Prepare the journal entries for the transactions above. (10 marks)

b) Prepare the company's income statement for the year ended December 31, 2022. (10 marks)

c) Calculate the company's total assets, total liabilities, and total equity as of December 31, 2022. (10 marks)

Answer rating: 100% (QA)

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