Comprehensive Problem- Prepare the following financial statements,

Income statementStatement of retained earningsBalance sheetStatement of Cash FlowDocument Preview:Name____________________________ Prepare journal entries to record each of the following transactions. You do not need to write explanations below the journal entries. Create general ledger accounts for each account and post each of the journal entries to an existing general ledger account. Prepare adjusting journal entries as you deem necessary. Besides the information provided for adjusting journal entries, review the transactions and review your unadjusted trial balance for any other adjusting journal entries you may need to prepare. Post each of the adjusting journal entries to the general ledger accounts. Prepare closing entries and post the entries to the general ledger accounts. Prepare trial balances as you deem necessary. Prepare the following financial statements, in their proper format, for the month of January Income statement Statement of retained earnings Balance sheet Statement of Cash Flow Shocker Electronics is a new company that distributes computer equipment to retail outlets. The following information pertains to Shocker Electronics during their first month of operations: Suppliers sales price cost terms Xtreme -game systems $ 3,000.00 2,400.00 1% 15, net 30 HP -office systems 2,000.00 1,700.00 1%/20, net/30 Gateway -home systems 900.00 720.00 2%/10, net/30 Customers Cuesta Computer terms 2%/10 net 30 Mustang Computer terms 2%/10 net 30 SLO CPU terms 2%/10 net 30 walk-in customers cash only – no discount Jan 1 Issued 10,000 shares of $1 par value common stock for $15 per share. Jan 1 Made a $50,000 down payment and signed a $600,000 mortgage to purchase land and building, which will be used as the distribution center. The land comprised of three (3) lots which appraised at $132,000 each ($396,000 total) and the building appraised for $264,000. The building occupies one (1) lot, one (1) lot will serve as parking and WCD…