Suzie & Jarrettâs Nugget CompanyDecember 31, 2015Prepare a Journal Entries and T-Accounts:Cash $200,000Accounts Receivable 40,000Inventory (500 Nuggets @ 200 each) 100,000Prepaid Insurance 3,600Equipment 410,000Accumulated Depreciation 120,000Security Deposit 10,000Accounts Payable 30,000Taxes Payable 10,000Wages Payable 7,000Rent Payable 2,000Note Payable 300,000Common Stock (1,000 shares) 1,000Paid in Capital 19,000Retained Earnings 274,600During 2016 the following transactions occurred: Paid prior yearâs accounts payable. Received prior yearâs accounts receivable. Sold 1,200 Nuggets for $400 each with 50% down (cash) and the other 50% will get later. Paid 2015 taxes payable. Paid cash for wages of $60,000. Paid fourteen monthsâ rent $28,000. Paid $3,000 for advertising for 2016. Sold 500 shares of common stock for $40.00 each on September 30, 2016. Paid utility bill for 2014, $2,000. Paid annual payment on note payable of $20,000 principal plus interest at 4% on December 31. Paid a $5,000 dividend to shareholders on December 31, 2016.Also, during the year the company paid 50% of the 2016 taxes. The tax rate is 30%. The company uses the FIFO inventory system.At December 31, 2016, the company owed $5,000 in wages which had not yet been paid.The prepaid insurance account at December 31, 2015 represent a policy that covers 2016 and 2017.The equipment originally cost $410,000, had a twenty year life and was expected to be worth $10,000 at the end.