Required: 1. Analyze all transactions using the basic accounting equation. Begin your analysis by entering the November 30 account balances into a worksheet. Then enter each of the transactions above into your worksheet.

2. Prepare a balance sheet as of December 31, 2018

3. Prepare an income statement for the month ended December 31, 2018

The following account balances are shown on November 30, 201, for the Clever Bookstore:

Cash $ 10,000 Accounts payable $ 4,000

Accounts receivable 5,000 Salaries payable 4,000

Inventory 2,000 Notes payable 2,000

Supplies 3,000 J. Clever, capital 10,000

Total $20,000 Total $20,000

The following transactions occurred during December.

1. Paid workers the $ 4,000 owed them on November 30.

2. Made sales totaling $ 6,000. Half of the sales were for cash. The other half

were on account. The cost of goods sold was $ 1500.

3. Purchased inventory on account, $2,000.

4. Collected in cash $ 2000 of receivables.

5. Used supplies totaling $ 1 200.

6. Paid accounts payable of $ 1000.

7. Paid all Decembers interest on the note payable in the amount of $200.

8. Purchased shoes, boots, socks, and other inventory for $ 1800 on account.

9. Purchased display shelving, chairs, and other fixtures for $1,000 cash and $ 600 on account. Assume a useful life of 8 years.

10. Obtained $3000 and signed a three-year, bank loan at 12% annual interest.

11. Had sales revenue during December of $13,000. Of this amount, $10,000 was received in cash and the balance was on account.

12. Paid $150 to each of two different creditors.

13. Signed an application for a one-year insurance policy and paid the years premium of $2200.

14. Accrued three employees a monthly salary of $2,000 each.

15. Collected $2,000 from (accounts receivable) customers.