Selected Accounts from Taylor Company as of March 31,2012,follow In Addition, the Following Transactions Occurred in the Month of

Essay

Selected accounts from Taylor Company as of March 31,2012,follow:
$\begin{array}{|l|rl|}\hline\text { Cash } & \$ 5,300 \\\hline \text { Inventory } & 10,250 \\\hline \text { Prepaid rent } & 100 \\\hline \text { Plant } & 40,500 \\\hline \text { Accumulated depreciation, plant } & 10,000 \\\hline \text { Accounts payable } & 6,300 \\\hline \text { Paid in capital } & 20,000 \\\hline \text { Retained earnings } & ?\\\hline\end{array}$
In addition, the following transactions occurred in the month of March.
1. Depreciation for the month amounted to $\$ 700$
2. Purchased inventory on account for $\$ 3,000$
3. Returned a portion of the inventory deemed defective for $\$ 200$
4. Paid creditors $\$ 2,200$ for inventory purchased in $\# 2$
5. Paid 6 months' rent of $\$ 600$ in advance, covering April 1, 2012 through September 30 , 2012. The contract price did not increase from the previous 6 months' period and covered October 1,2011 through March 31,2012
6. Sold inventory for $\$ 4,100$ cash that cost Taylor Company $\$ 2,600$ Required:
1.Journalize the transactions for Taylor Company.
2.Prepare an analysis of the transactions using the balance sheet equation.
3.Prepare an income statement for the month ending March 31.
4.Prepare a balance sheet at March 31.