# The following account balances are shown on November 30, 1999, for the Clever Bookstore: The following transactions occurred during December. 1. Paid workers the \$2,000 owed them on November 30. 2. Made sales totaling \$40,000. Half of the sales were for cash. The other half were on account. The cost of goods sold was \$25,000. 3. Purchased inventory on account,

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The following account balances are shown on November 30, 1999, for the Clever Bookstore:

The following transactions occurred during December.

1. Paid workers the \$2,000 owed them on November 30.

2. Made sales totaling \$40,000. Half of the sales were for cash. The other half were on account. The cost of goods sold was \$25,000.

3. Purchased inventory on account, \$15,000.

4. Collected in cash \$22,000 of receivables.

5. Used supplies totaling \$800.

6. Paid accounts payable of \$ 12,000.

7. Paid all December’s interest on the note payable in the amount of \$300.

Required

a. 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.

b. Prepare a balance sheet as of December 31, 1999.

c. Prepare an income statement for the month ended December 31, 1999.

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