Problem 1 MRyan Co., purveyor of fine, fine things, had the following balances a

Problem 1 MRyan Co., purveyor of fine, fine things, had the following balances at December 31,2015 Cash Accounts Receivable Allowance for doubtful accts Inventory Equipment Accumulated Depreciation-Equipment Land Patent Accounts Payable Salary Payable Rent Payable Taxes Payable Long Term Debt Common Stock ($1 per share) Retained Earnings 40,000 60,000 1,000 50,000 (1 thing) 190,000 60,000 50,000 20,000 40,000 1,000 2,000 3,000 80,000 90,000 133,000 During 2016 the following transactions occurred: Jan 1, received all beg A/R and paid all Beg A/P Mar 1, bought 2 things for $60,000 each, (paid 25% down and the rest payable in one year) April 15, paid year 2015 taxes payable May 1, sold one thing for $80,000 (paid 25% down and rest payable in one year) July 1, company wrote off $600 in bad debts July 1, sold one thing for $160,000 (received 75% down and the rest will be paid in one year) Aug 1, purchased piece of equipment for $10,000 cash Sept 1, exchanged 40,000 shares of common stock for piece of land worth $40,000. Dec 1, declared and paid $.10 per share dividend Dec 31, paid an annual payment on long term debt-$28,000. Of that amount, $8,000 During the year the was for interest and $20,000 was for principal during the year the company company paid 15 months’ rent of $15,000. Also paid salaries of $12,000 in cash, and at the end of the year they owned $3,000 for salaries, Depreciation for the year is $10,000. The long-term debt is payable in $20,000 principal payments plus interest of 10% each December 31. The tax rate us 30% and during the year the company paid 2015 taxes payable and the 50% of 2016 taxes. The company uses the FIFO inventory system. The company estimates the 2% of its receivables will ultimately be uncollectible. Journalize the above transactions and post them to T-Accounts. Prepare any necessary adjustments. Prepare a P&L, Statement of Owners Equity, Balance Sheet and Cash Flow Statement for the year 2016