1. Depreciation expense for 2017 was $48,000.

2. Prepaid insurance pertains to insurance on its truck fleet and premises. During 2017, Majestic used $15,000 of insurance that was recorded as prepaid on December 31, 2016. In late 2017, it purchased and paid for insurance for 2018. The insurance cost $21,000.

3. During the year, Majestic paid $11,900 in interest to the holders of the long-term notes. Interest is paid annually on January 2. In addition to the interest payment, Majestic paid $20,000 on January 2, 2017 to reduce the balance owed on the long-term notes. The interest rate on the notes is 8.5 percent.

4. Majestic paid dividends of $55,000 to shareholders.

Please do the general entries and adj entries.

Thanks.

Majestic Trucking Inc. (Majestic) is a small trucking company that carries freight between centres in central Canada and the northeastern United States. The Mozart family of Cobourg owns Majestic, but professional managers manage it. One member of the Mozart family serves as the chair of the board of directors. No other family members are actively involved with Majestic. Majestic's balance sheet for December 31, 2016, the company's year-end, is shown below. Majestic uses its financial statements for tax purposes, to show to the holders of the long-term notes that the company issued to finance the purchase of some of its trucks, and to provide information to the shareholders. Majestic Trucking Inc. Balance Sheet As of December 31, 2016 Assets Cash $ 77,340 Accounts receivable 81,500 Prepaid insurance 18,000 Liabilities and Shareholders' Equity Accounts payable $ 42,220 Taxes payable 15,000 Wages payable 10,000 Customer deposits 27,000 Interest payable 11,900 Current liabilities 106,120 Current assets 176,840 Capital assets 465,000 (201,700) Accumulated depreciation Long-term notes payable 140,000 Common shares 80,000 Retained earnings 114,020 $440,140 $440,140 It is now January 2018. Majestic needs to prepare its financial statements for the year ended December 31, 2017. You have obtained the following information about the fiscal year just ended