The following transactions apply to Pecan Co. for Year 1, its first year of operations:
1. Received $35,000 cash in exchange for issuance of common stock.
2. Secured a $109,000 ten year installment loan from State Bank. The interest rate is 5 percent and annual payments are $14,116,
3. Purchased land for $22,000.
4. Provided services for $105,000.
5. Paid other operating expenses of $44.000.
6. Paid the annual payment on the loan.
Required
a. Organize the transaction data in accounts under an accounting equation.
b. Prepare an income statement and balance sheet for Year 1
c. What is the Interest expense for Year 2? Year3