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Suppose that Steve decides to undertake an investment opportunity and the following sequence of events occurs over a period of one year: 1. Organize NeXT firm and invest $3,000 cash as capital. 2. Purchase equipment for a total cost of $2,000 by paying cash 3. Borrow $1,500 through a note to the bank. 4. Manufacture year's supply of inventory through the following: (1) Pay $1,200 cash for labor. (il) Incur $400 accounts payable for material. (ill) Recognize the partial loss in value (depreciation) of the equipment amounting to $500. 5. Sell on credit all goods produced for year, 1,000 units at $3 each. Recognize that the accounting cost of these goods is $2,100, resulting in an increase in equity (through profits) of $900. 6. Collect $2,500 of accounts receivable. 7. Pay $300 of accounts payable and $1,000 of bank note. a) Analyze the effects of the preceding transactions on the accounting b) Prepare Balance Sheet as of December 31, 2020 c) Prepare Income Statement for Year Ending December 31, 2020