Question 1: (4.5 points) Below appears the Balance Sheet of Claire Company as of December, 31, 2016. During 2017 Claire Company performed the following operations (the periodic method for inventory calculations is used): 1. Feb 14th. Bought inventory for $140,000 on account 2. March 20th. Collected $52,000 from clients that owed money 3. April, 30th. Borrowed $10,000 through a 1 year, 6% (annual rate) note payable (interest paid only at maturity) 4. April, 30th. New shareholders invested $25,000 in the company in cash. 5. May 15th. Had sales of $300,000 (only $210,000 in cash, the rest on account) 6. June 25th. Paid $131,000 that was owed to suppliers 7. Jul 20th. Paid all pending wages from 2016 8. Oct 30th. Paid wages of $16,000 to employees for hours worked during 2017 9. Dec 12st. Cost of goods sold for the year was $133,000 10. Dec 31st. Other wages worked during 2017 but not paid amounted to $4,000 11. Rent is paid annually in advance. During 2017 the company "used" the prepaid rent shown in the balance sheet, and it has to pay only $8,000 for the 2017 rent. Required: (Solve this exercise on the ANSWER SHEET) a) Prepare the journal entries and general ledger entries corresponding to the year 2017. (Note that some implied adjustments may be needed) (3 points) b) Prepare the Income Statement of "Claire Company" for the year 2017. ( 0.75points) c) Prepare the Balance Sheet of "Claire Company" at Dec 31, 2017. ( 0.75point) 2