(39 points) A company, Frosty Ice Cream (hereafter, Frosty), buys and sells ice cream for its major business operations. The following business transactions happened in October 2018. Prepare journal entries and adjusting entries for Frosty for October 2018. 1.On October 1, Frosty signed a note and borrowed $300,000 cash for five years from a local bank. The monthly interest charge was $250, and the interest would be paid on a quarterly basis. 2.On October 1, Frosty paid $30,000 cash to Farmers Insurance Company for its property insurance for the following 12 months, starting October 2018. 3.On October 1, Frosty acquired $120,000 inventory, $20,000 of which the company paid in cash on October 1. Frosty promised to pay the remaining balance to its suppliers in the following month. 4.On October 1, Frosty collected $20,000 rent in cash and in advance. The tenant was paying for the next five months rent, starting October 2018. 5.On October 6, Frosty issued additional common stocks for $60,000 cash that the owners invested to the company. 6.On October 12, Frosty acquired $2,500 office supplies on account. 7.On October 16, Frosty sold and delivered merchandise for $220,000 to a new customer. The cost of such merchandise was $100,000 to Frosty. The customer paid $20,000 in cash on October 16 and would pay the remaining balance in 30 days. 8.On October 26, Frosty collected $160,000 in cash from a previous customers account. 9.On October 31, Frosty had incurred salary expenses of $65,000 for the month of October. Frosty paid $60,000 in cash to its employees and would pay the rest on November 3, 2018. 10.On October 31, Frosty had $300 office supplies on hand. Its also known that Frosty had a $500 beginning balance in its office supplies on 10/1/2018. 11.On October 31, please also prepare adjusting entries for its (1) interest charges, (2) rental revenue, and (3) insurance expense, if necessary, for the month of October 2018. Item Date Accounts Debit Credit 1.

2III.(31 points) iConnect Company is a merchandise company, which buys and sells electronic accessories. The following amounts were taken from its pre-closing trial balance (in dollar) as of December 31, 2017. Prepare its relevant financial statement(s) and answer questions below.Accounts payable 18,000Inventory 15,000Accounts receivable 56,000Land 25,000Cash 2,500Notes payable (due in 2030)10,000Common stock 45,000Other operating expenses 3,500Cost of goods sold 42,000Prepaid insurance 800Income tax expense 1,500Retained earnings (as of 12/31/2016)12,500Insurance expense 1,000Revenue 67,000Interest expense 1,700Salary expense 11,000Interest payable 500Unearned revenue 7,000Required 1: Prepare a financial statement, in a good format, to determine how and whether the company was profitable for year 2017. Was the company profitable in 2017?Required 2: Prepare a financial statement to capture the financial position of the company at the end of year 2017. Who had more claims of the companys assets, its creditors or the owners?IV.(10 points) Answer the following questions.1.(4 points) On October 1st, a bookstore paid a total of $1,000 in cash and acquired ten IPods (thus $100 each) for future sales. Its also known that these IPods can be possibly sold on the market at a price of $150 each. Prepare proper T-accounts below to show the impact of the IPods acquisition on 10/1for this bookstore. (Note: For this question, please ignore the beginning and ending balances of each account.) On 10/1: 2.(6 points) A local company had the following financial data on January 1, 2021: total assets $55,000, total liabilities $45,000, and total owners equity $10,000. During January 2021, the companys total assets increased by $15,000 while its total liabilities decreased by $5,000. It is also known that the company issued additional common stock totaling $3,000 and paid no dividends in January 2021. How much net income, if any, did the company make for January 2021? Show your calculations.