Problem Sheet Listed below are the accounts and their respective balances for The Best Shop (BS, Inc.) at December 31, 20X1: Cash $ 199,000 Inventory (5 things @ $ 20,000 each) 100,000 Equipment 220,000 Accumulated Depreciation 80,000 Security Deposit 4,000 Taxes Payable 13,000 Wages Payable 12,000 Rent Payable 1,000 Note Payable 150,000 Common Stock (2,000 shares) 70,000 Retained Earnings 197,000 During 20X2 the following transactions occurred: Purchased 10 things at $21,000 each. Paid 70% down and will pay the rest later. Sold 10 things for $30,000 each with 80% down (cash) and the rest later. Paid last years' taxes payable. Paid cash for wages of $60,000. Paid eleven months rent, $11,000. Paid $2,000 for advertising. Sold 500 shares of common stock for $45.00 each on November 1. Paid utility bill for $1,000. Paid annual payment on note payable of $10,000 principal plus interest at 5%. Paid a $2,000 dividend to shareholders on December 31. Also, during the year the company paid 50% of the 20X2 taxes. The tax rate is 30%. The company uses the FIFO inventory system. At Dec 31, 20X2, the company owed $5,000 in salaries which had not yet been paid. The equipment originally cost $220,000, had a twenty year life and was expected to be worth $20,000 at the end. Other adjustments? Prepare Journal Entries, T-Accounts and financial statements for 20X2