P13-1. Current Operating Liabilities. [Learning Objective 1/ James Stores, Inc. completed the following transactions during the current yoar, the company's first year of operations. James Stores has a December 31 year-end.January 16: Purchased $546,000 of merchandise inventory from various suppliers on account (no discount for early payment offered).February 1: Sold merchandise that cost $100,000 for $120,500 on account. The sales tax rate is 8%.February 10: Paid half of the January 16 purchases.February 16: Paid the remaining balance of accounts payable from the January 16 purchase.March 1: Paid the sales taxes recorded on February 1.June 1: Sold merchandise that cost $212,000 for $300,000 on account. The sales tax rate is 8%.Requireda. Prepare the journal entries required to record the transactions in the preceding list. Assume that a perpetual inventory system is used.b. Prepare a partial income statement for the current fiscal year.