1. Harvey Spectre started Pearson & Co. , a company law firm on April 1, 2021. The following information regarding the company is available:

i. On 1 April, Harvey Spectre invested $80,000 cash to start the company. ii. On April 2, Harvey Spectre hired a new secretary, who will be paid a salary of $500 per week, payable monthly. iii. On April 3, Pearson & Co. purchased insurance policy worth $450 in advance for the coming six months, paying the amount in cash. iv. On April 6, Pearson & Co. purchased office supplies worth $5,000, on account. On the same day the company also purchased new equipment worth $7,500, paying $5,000 cash immediately and agreed to pay the remaining within 25 days. v. On April 10, Pearson & Co. received $4,000 from one of its clients for legal services that are expected to be completed in June 10. vi. On April 12, Pearson & Co. paid the amount due for supplies that was purchased on account on April 6. vii. On April 15, Pearson & Co. received $8,100 for legal services provided to one of its regular clients. viii. On April 16, Harvey Spectre sent a bill worth $2,300 to its client, for services provided to the client. ix. On April 17, supplies worth $3,000 was purchased. x. On April 19, Advertising expenses incurred and unpaid $500. xi. On April 20, Pearson & Co. paid rent of $6,000 for its office, for the month of April.

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xii. On April 26, Harvey Spectre paid his secretary salary for the month of April. xiii.On April 28, Pearson & Co. received money for the bill that was sent to its client on April 16. xiv. On April 29, Harvey Spectre withdrew $1,500 from the business for personal use.

Required:

a. Journalise the above mentored transaction in the books of Pearson & Co. (16 marks) b. Post the journals into appropriate ledger accounts. (15 marks) c. Prepare a trial balance for Pearson & Co., for the month ended 30 April, 2021. (4 marks) d. Assume that you are the accountant of Pearson & Co., the following adjusting entries were discovered on the last day of the month : i. One months insurance expired. ii. Out of the supplies purchased during the month, $1,500 worth of supplies were still unused. iii. From the April 10 transaction, Pearson & Co. earned $2,000. iv. On April 30, Pearson & Co. received electricity bill of $1,200 that will be paid for within the next 5 days (by May 5th). v. Pearson & Co. provided legal services worth $1,500 to its client that had not been recorded yet. vi. Pearson & Co. will charge a depreciation of $75 per month , or $900 per year. vii. The employees of Pearson & Co. are paid weekly and are always paid on the last day of each week. The company has three employees and each employee is paid a salary of $600 for a 5-day work week (Sunday- Thursday). Assume that April 30 is a Wednesday and employees are paid on Thursdays of each week. All the previous weeks salary are already paid for, only Aprils last weeks salary related transaction is yet to be recorded.

d. Write the adjusting journal entries for the above mentioned transactions. (7 marks).

e. Prepare the adjusted trial balance for Pearson & Co., for the month ended 30 April, 2021. (9 marks).

f. Prepare the Income Statement, Owners Equity Statement and Balance Sheet for Pearson & Co., for the month ended 30 April, 2021. (22 marks) Page 2 of 5

g. Write the closing journal entries for Pearson & Co. (5 marks)