1. The Accounting Cycle - During the period (10pts): Following is a complete list of accounts and account balances that appear in the general ledger as of August 1, 2021 for Seven, Inc. Assume all accounts have their normal debit or credit balance. Amount: Amount: Account: Cash $920 Accounts Receivable (A/R) Prepaid Rent Inventory Equipment Accumulated Depreciation-Equipment Accounts Payable (A/P) Interest Payable Wages Payable Notes Payable $27,911 $32,697 $5,000 $19,975 $78,000 $32,500 $19,042 $300 $17,500 $40,000 Account: Common Stock ($0.10 par value; 9,200 shares issued and outstanding) Additional Paid-In Capital Retained Earnings Sales Revenue Cost of Goods Sold (COGS) Wages Expense Interest Expense Depreciation Expense Rent Expense Treasury Stock Dividends $16,544 $36,777 $0 $0 $0 $0 $0 $0 $0 $0 Date: The following transactions were identified to have occurred during August 2021: Transaction: 8/2 Purchased $23,942 worth of merchandise inventory on account. 8/4 Issued 800 shares of $0.10 par value common stock for $41 per share. 8/8 Sold merchandise inventory to customers for $82,077 on account. The cost of the inventory sold was $35,888. 8/9 Declared a cash dividend of $0.50 per share of common stock, payable to all stockholders of record as of 8/15/2021. 8/15 Paid $36,000 in cash for employee wages. $17,500 of this was related to work done in July and the other $18,500 was related to work done in August. 8/19 Paid $22,080 in cash to creditors on accounts payable. 8/24 Received $65,011 from customers on their accounts receivable. 8/27 Reacquired 150 shares of common stock as Treasury Stock, paying $20 per share. 8/30 Paid the cash dividend which was declared on 8/9. PART A (4.5pts; 0.5pts each entry): Record all the journal entries for the transactions that occurred during August that are listed above. Make sure to use proper formatting, include the date of each transaction, and a brief description of each. PART B (2pts; 0.5pts each balance): After recording the above transactions, calculate the ending balance that would appear on the August 31, 2021 unadjusted trial balance for the following accounts. You must show your work, such as a formula or T-account used to arrive at your answer. 1) Cash 2) A/R 3) A/P 4) Inventory PART C: Record Adjusting Journal Entries (AJES) 2pts; 0.5pts each entry: The following additional information was gathered at August 31, 2021, the end of the firm's monthly accounting period. Assume Seven, Inc. uses a monthly accounting period and all adjustments and adjusting entries are made only at the end of each monthly accounting period. No adjusting entries have been made yet for the month ending August 31, 2021 related to the below items: O O Accrued wages of $18,000 for work done 8/16 - 8/31/2021. On 7/1/2019, Seven, Inc. purchased the Equipment for $78,000. The equipment has $0 salvage value and has an estimated useful life of 5 years. Assume Seven uses the straight-line depreciation method to allocate the cost of the equipment evenly over its 5-year useful life. On 1/1/2021, Seven, Inc. had prepaid one year's rent, paying $12,000 in cash. This covered the period 1/1/2021 - 12/31/2021. The firm recorded this as Prepaid Rent on 1/1/2021. On 5/1/2020, Seven borrowed $40,000 from the local bank, signing a note payable. This note is due in 7 years and has an annual interest rate of 3.0%. Seven pays interest every April 30th and the next interest payment is due on April 30th, 2022. O O Record the AJEs related to the information above that Seven would make on 8/31/2021. Make sure to use proper formatting for all entries, and to include the date of each entry and a brief description of each entry. You must show all of your work on calculations to receive full credit. PART D: Shares of Common Stock Outstanding (0.5pts): Calculate the number of shares of Common Stock that would be outstanding as of August 31, 2021. Show all calculations. PART E: Calculate adjusted Net Income - 0.5pts: Calculate the amount of Net Income that Seven would report on its Income Statement for the month ended August 31st, 2021. You must show all of your work on calculations to receive full credit. PART F: Calculate Total Stockholders' Equity - 0.5pts: Calculate the value of Total Stockholders' Equity that Seven would report on its Balance Sheet as of August 31st, 2021. You must show all of your work on calculations to receive full credit