Question 1 - Current Liabilities Dillon Company operates on a calendar-year basis. At the beginning of January 2015, Dillon had the following liabilities and shareholders equity accounts listed on its books: Liabilities Account Payable Unearned Revenue Warranty Liability Long-term Note payable, 10% Total Liabilities 79,300 9,000 47,000 50,000 185,300 60,000 Shareholders' Equity Common stock (10,000 shares outstanding] Retained earnings Total Shareholder's Equity 800,000 860,000 During 2015, the following events occurred: 1. Sold merchandise for $10,000 cash plus 10% sale tax. The cost of merchandise sale was $8,000. The Company uses the perpetual inventory system. 2. Made payments of $22,300 on account to suppliers. 3. The company earned one-third of the unearned revenues for repair services that had been prepaid by customers. 4. Dillon's products are sold with a 3-year warranty. The company computes its warranty expense for the year as $22,000. During December 2015, the company paid $1,000 in warranty claims. 5. The note was signed on April 1st, 2015. Interest on the note is paid every December 31st 6. A 6% common stock dividend was declared and distributed. The share price was $15. 7. The company reacquired and retired a total of 1,000 common shares for $10 per share. 8. Income for fiscal 2015 is $350,000 Required [Show all the calculations]: 1. Comment on the Company's capital structure as at January 1st 2015. Be as specific as possible 2. Record all the necessary journal entries 3. Prepare the Shareholder's Equity Section only of the Balance Sheet as at December 31st, 2015