Sweet Dreams Chocolatiers Ltd. began operations on January 1, 2020. During its first year, the following transactions occurred:
1. Issued common shares for $200,000 cash.
2. Purchased $483,000 of inventory on account.
3. Sold inventory on account for $675,000. The original cost of the inventory that was sold was $405,000.
4. Collected $562,000 from customers on account.
5. Paid $431,000 to suppliers for the inventory previously purchased on account.
6. Bought a delivery vehicle for $39,000 cash.
7. Paid $27,300 for rent, including $2,100 related to the next year.
8. Incurred $20,000 of operating expenses, of which $18,000 was paid.
9. Recorded $2,000 of depreciation on the vehicle.
10. Declared and paid dividends of $8,500.
Requireda. Prepare journal entries to record each of the above transactions.b. Create T accounts and post the journal entries to the T accounts.