Recording transactions and preparing financial statements question $(40$ points; $1$ point for

each journal entry, $1$ point for each $T$ account, and $5$ points for each $of$ the income statement and

the balance sheet$)$

Newby Inc., incorporated and began business $on$ January $1,2020.$ During the first quarter $of$

$2020,$ the following transactions occurred.

$a$$$200$ cash.

$b$$$500$ from a bank. The bank charges interest $of2$

percent $on$ the outstanding borrowing per quarter, but requires $no$ payment $of$ either

principal $or$ interest during the quarter.

$c$$$8$ per month, payable $(and$ paid$)on$ the ${15}^{th}of$ the month.

$d$$$60$ per year.

The employee $is$ paid $on$ the last day $of$ each month for that month's work.

$e$$$240$ cash. The fixtures have a useful life

$of10$ years and $no$ salvage value. Depreciation expense $is$ a constant amount each

quarter during the useful life $of$ the fixtures. $(You$ may record depreciation expense either

directly $to$ property, plant, and equipment $orto$ accumulated depreciation.$)$

$f$$$60,$ paying cash $of$ $$20$ with the rest being

$on$ account.

$g$$$40$ for $$20$ cash and $$70on$ account.

$h$$$30$ cash for specialized

inventory $tobe$ delivered $in$ April.

Required: Record the journal entries for the explicit transactions listed above $as$ they occur, for

any transactions involving cash $on$ the day that cash changes hands, and for the adjusting entries

and closing entry $on$ March $31,2020(i.e.,$ the last day $of$ the first quarter $of2020).$ Indicate the

day $on$ which each journal entry should $be$ made. Post the journal entries $toT$ accounts. Prepare

the income statement for the first quarter $of2020$ and the balance sheet $at$ the end $of$ that quarter.

$(Youl$ need not prepare a trial balance, but $if$ you $do$ I will use $itto$ award partial credit.$)$