Answer:
<u>Part a</u>
Transaction 1
Debit : Cash $61,000
Credit : Common Stock $61,000
Transaction 2
Debit : Merchandise  $21,300
Credit : Cash $21,300
Transaction 3
Debit : Cash  $27,700
Debit : Cost of Sales    $12,100
Credit : Sales Revenue $27,700
Credit : Merchandise   $12,100
<u>Part b</u>
Income Statement for the year
Sales                                                             $27,700
Less Cost of Sales 
Opening Stock                              $0
Purchases                                 $21,300
Less Closing Inventory            ($7,400)    ($13,900)
Gross Profit                                                  $13,800
Balance Sheet as at end of the year
ASSETS
Inventory                                                     $7,400
Cash ($61,000 - $21,300 + $27,700)      $67,400
TOTAL ASSETS                                        $74,800
EQUITY AND LIABILITIES
Common Stock                                         $61,000
Net Profit                                                   $13,800
TOTAL EQUITY AND LIABILITIES           $74,800
Explanation:
Step 1 : Journal entries 
Tip - there are two or more accounts affected by transactions. Identify these and record the Debit and Credit
Step 2 : Income Statement
The Income Statement accounts for Revenues / Incomes and Expenses. Identify Accounts for these and Record them in this statement.
Step 2 : Balance Sheet 
The Balance Sheet accounts for Assets, Liabilities and Equity. Identify Accounts for these and record them in this statement.