Question 8 (14 points) For this question, you have two options for submitting your answer 1. You may type your answer in the textbox below. 2. You may also type your answer using excel or word and then submit the file of your answer into the dropbox "Midterm 2". Francis's Vintage Cars Ltd. sells used classic cars to car enthusiasts in the Burlington area. The company began operations on January 1, 2021. During the fiscal quarter year ended March 31, 2021 the company had the following transactions: Date Transaction Jan. 1 Purchased a 1967 Ford Mustang (hereafter Car A) for $15,000 cash. Purchased a 1951 Chevrolet Corvette (hereafter Car B) for $23,000 cash. Jan. 14 Paid $8,000 for restoration work done on Car A. Feb. 14 Sold Car A for $32,000 to Mr. G. Dennerley. Terms of the sale are 1/10, net 60 Purchased a 1989 Ferrari (hereafter Car C) for $41,000. Jan. 9 Mar. 16 Mar. 25 Sold Car B for $46,000 to Mrs. D. Whatman. Terms of the sale are 1/10, net 60. Paid operating expenses of $12,000 and selling expenses of $8000 for the quarter. Mar. 31 Additional Information 1. The company uses a perpetual inventory system to track its inventory 2. The company uses the specific identification method to value its inventory and measure its cost of sales. 3. The company pays income tax at a rate of 30%. 4. The company estimates that 5% of accounts receivable at the end of the quarter are likely to be not collectible. Required 1. Prepare journal entries to record all transactions and any necessary quarter end adjusting entries. 2. Prepare an income statement for the fiscal quarter ended March 31, 2021