Dr. Smith started Biotech Inc. (BTE). on October 1, 2020. On October 1, 2020, BTE issued 100 common shares to Dr. Smith in exchange for $10,000 in cash. Also, the following events occurred in December 2020. a) On December 1, 2020, BTE borrowed $1,200,000, 5-year loan, bearing 7% interest. b) On December 10, 2020, BTE issued 1000 preferred Class A shares to investors for $600 each. The articles of incorporation (charter) disclosed that the Class A, non-cumulative preferred shares had a stated value of $ 250 per share. c) On December 28, 2020, BTE declared and paid a 5% stock dividend on the common shares. The market value of the common shares before the announcement of the stock dividend was $ 850 per share. d) On December 30, 2020, BTE paid a dividend to the common shareholders of record of $50 per share. Required: Please prepare the necessary journal entries for the above transactions above as well as any adjusting entries required at the year-end date December 31, 2020. Narratives are NOT required. Date Account Debit Credit 10/1/2020 12/1/2020 12/10/2020 12/28/2020 12/30/2020 12/31/2020 SUMMARY SHEET OF SELECTED RATIOS 1.Accounts receivable turnover Net credit sales Average accounts receivable 2. Inventory turnover Cost of goods sold Average inventory 3. Current ratio = Current assets Current liabilities 4. Debt to equity ratio= Total liabilities Total equity 5. Cash ratio=Cash and short-term investments Current liabilities 6. Return on assets ratio = Average total assets Net income + (Interest expense x (1- tax rate)) 7. Quick ratio = Cash + Accounts receivable + short term investments Current liabilities 8 Return on equity ratio = Net income Average equity 9. Gross profit percentage ratio = Gross profit (or Gross Margin) Net sales 10. Net profit margin percentage ratio Net income Net sales 11. Earnings per share (EPS) = (Net Income - Preferred Dividends) Average number of common shares outstanding