Use double-entry (“T”) accounts to record the following transactions:

Use double-entry (“T”) accounts to record the following transactions:
1. Invest $40,000 in your own business
2. Borrow an additional $60,000 for five years to invest in the business.
3. Buy office equipment for cash: $25,000 (useful for five years)
4. Buy inventory of office supplies on account: $10,000
5. Prepay rent on office space for one year: $18,000
6. Use $1,000 of office supplies in creating first project
7. Pay employees $1,500 for work done on first project
8. Receive payment of $14,000 for first project: $7,000 cash and $7,000 on account.
9. Pay utility bill of $800 with cash.
10. Receive bill for installation of information system: $600, to be paid later.
11. Complete and ship project 2 with invoice for $20,000
12. Recognize wages due to employees of $4,000 on project 2
13 .Collect $7,000 payment on project 1.
14. Collect payment of $5,000 on project 2.
15. Pay $8,000 on account payable
16 .Recognize six months office rent
17. Recognize six months use of office equipment.
18. Make payment of $3,300 on loan: $3,000 principle and $300 interest.
Continue with the following tasks:
- Prepare the income statement
- Close out revenue and expense accounts to net income
- Close out net income to retained earnings
- Prepare the balance sheet