MSU Case: Below is the December 31, 2012 balance sheet for MSU Corporation as well as a narrative of transactions that occurred during 2013. MSU Corporation is a retail establishment. Using this information, prepare a December 31, 2013 balance sheet and income statement for the year ended December 31, 2013. Record transactions using t-charts. Assets Current MSU Corporation Balance Sheet December 31, 2012 Cash 1,000 Accounts Receivable 3,000 Inventory 4,000 Total Current Assets. 8,000 Property and Equipment (net of 20,000 accumulated depreciation) Total Assets Liabilities and Shareholder Equity Current Accounts Payable 28,000 5,000 Salary Payable Total Current Liabilities 1,000 6,000 10% Note Payable Total Liabilities. 10,000 16,000 Common Stock 10,000 Retained Earnings 2,000 Liabilities and Shareholder Equity 28,000 Pa Relevant Information for 2013 Pag Note: This list includes all activities/transactions do not add to the problem by adding more transactions/information. In other words, if it isn't here, then do not worry about it. 1. Sales for the year were $70,000. All sales were on account (i.e., credit sales). 2. Collections of accounts receivable totaled $12,000 cash. 3. New property and equipment were purchased for $4,000 cash. 4. Equipment with a book value of $2,000 was sold for $1,800 in cash. 5. Depreciation was $2,000 for the year. 6. Purchases of inventory totaled $35,000 for the year. All purchases were on account (on credit). 7. Payments to suppliers for purchases on account totaled $32,000 in cash. & The ending inventory balance was $5,000. 9. On December 31, 2013, MSU repaid the 10% note with accrued interest by paying the bank $11,000 cash. 10. $20,000 in cash was paid during the year for salaries payable to employees. (Hint: This amount includes payment of the $1,000 Salaries Payable balance from 12/31/2012.) 11. $500 salaries expense was accrued for the last 4 days of 2013. 12. Cash payments for other expenses totaled $1,500. 13. On June 30, 2013, MSU paid $1,000 in cash for a one-year insurance policy covering the period June 30, 2013 to June 30, 2014. 14. MSU operates in a tax-free jurisdiction. (Are they lucky or what?)