AP$2-14$B $($Transaction analysis and financial statement preparation$)$ Moksh Ltd$.$ started business on January $1,2024.$ The following transactions occurred in $2024$:

On January $1,$ the company received $$700,000$ when it issued $10,000$ common shares.

On January $1,$ the company borrowed $$250,000$ from the bank at $6\%$ annual interest. The loan principal is due in three years.

On January $3,$ the company purchased land and a building for a total of $$700,000$ cash. The land was recently appraised at a fair market value of $$400,000.($Note: Because the

building will be depreciated in the future and the land will not, these two assets should be recorded in separate accounts.$)$

Inventory costing $$190,000$ was purchased, of which $$100,000$ was on account.

Sales to customers totalled $$310,000.$ Half of these sales were on account, and the balance were cash sales.

The cost of the inventory that was sold to customers in transaction $5$ was $$128,000.$

Collections from customers on account totalled $$132,000.$

Payments to suppliers on account totalled $$95,000.$

During the year, employees earned wages of $$96,000,$ of which $$4,200$ was unpaid at year end.

The interest on the bank loan was recognized and paid for the year.

The building was estimated to have a useful life of eight years and a residual value of $$20,000.$ The company uses the straight$-$line method of depreciation.

The company declared dividends of $$15,000$ during the year, of which half were to be paid in January $2025.$

Required

a$.$ Analyze the effects of each transaction on the basic accounting equation, using a template like the one below:

b$.$ Prepare a statement of income, a statement of changes in equity, a statement of financial position $($unclassified$),$ and a statement of cash flows for $2024.$