Nbspprepare general journal entries for each of the

Question

New England Sales had the following transactions in 2013:

1. The business was started when it acquired $300,000 cash from the issue of common stock. 
2. New England purchased $900,000 of merchandise for cash in 2013. 
3. During the year, the company sold merchandise for $1,500,000. The merchandise cost $820,000. Sales were made under the following terms:
a. $530,000...Cash sales
b. 450,000..Credit card sales (The credit card company charges a 4 percent service fee.)
c. 520,000...Sales on account
4. The company collected all the amount receivable from the credit card company. 
5. The company collected $480,000 of accounts receivable. 
6. The company paid $215,000 cash for selling and administrative expenses. 
7. Determined that 5 percent of the ending accounts receivable balance would be uncollectible. 

Required: 
a. Show the effects of each of the transactions on the elements of the financial statements, using a horizontal statements model like the one shown here. Use + for increase, Use - for decrease, and NA for not affected. The first transaction is entered as an example.

b. Prepare general journal entries for each of the transactions, and post them to T-accounts. 

c. Prepare an income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for 2013.