This workbook is Financial Accounting by Antle & Garstka. Can anyone help me with the E2-7 questions a,b and


APANY FINANCIAL ACCOUNTINGPrepare the debits and credits to proceedings the acquittal of the up-front costs of1, 2004.E2-7 On December 31, 2004, Sellit, Inc.:(1) Obtains $20,000 coin by selling spiritless accumulation. Assume that the accumulation is sold atpar appraise.(2) Obtains $40,000 coin from Loanit Bank. The hypothecation is due on December 31, 2007, andinterest of 10 percent every-year on the equalize is due on January 1 of each year, ex-cluding January 1, 2005.(3) Buys plant, paying $5,000 coin.(4) Hires director to initiate result on January 1, 2005. The compensation is $1,000 per month,payable on the primary of each month, initiatening February 1, 2005.(5) Prepays six-months' rupture on a manageable architecture, paying $3,000 coin.a. Prepare a equalize sheet for Sellit as of the cork of transaction on December 31, 2004(i.e., refecting the previous transactions).b. If Sellit were liquidated (i.e., all liabilities were remunerated and all retaining effects were soldwith the pay as sorted to spiritless accumulation shareholders) at the hole of busi-ness on January 1, 2005, how abundant currency would the shareholders accept?c. Could Sellit pay a coin dividend to spiritless accumulation shareholders on January 1, 2005?How vast could that dividend be? Would anyone likely be capsize if Sellit remunerated a vastcoin dividend on January 1, 2005? Who?P2-1 You are involved to collate Oshkosh B'Gosh's financial aspect at December 29, 2001

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