5 6 3. Scratch Miniature Golf and Driving Range Inc. was opened on March 1, 2019 by Scott Verplank. The following selected events and transactions occurred during March. Mar. 1 Invested K50,000 cash in the business in exchange for common stock. 3 Purchased Michelle Wie's Golf Land for K38.000 cash. The price consists of land K10,000, building K22,000, and equipment K6,000. (Make one compound entry.) Advertised the opening of the driving range and miniature golf course, paying advertising expenses of K1,600 Paid cash K1,480 for a one-year insurance policy. 10 Purchased golf equipment for K2,500 from Singh Company, payable in 30 days. 18 Received golf fees of K1,200 in cash. 25 Declared and paid a K500 cash dividend. Paid wages of K900. 30 Paid Singh Company in full. 31 Received K750 of fees in cash. Scratch uses the following accounts: Cash, Prepaid Insurance, Land, Buildings, Equipment, Accounts Payable, Common Stock Dividends, Service Revenue, Advertising Expense, and Salaries and Wages Expense. Required: 1. Prepare general journal entries to record each transaction.as of March 2019. Give explanations. 2. Post the entries to T-accounts. 3. Prepare an unadjusted trial balance as of March 31, 2019. 30 4. The information necessary for preparing the 2013 year-end adjusting entries for Vito's Pizza Parlor appears below. Vito's fiscal year-end is December 31. a. On July 1, 2013, purchased K10,000 of IBM Corporation bonds at face value. The bonds pay interest twice a year on January 1 and July 1. The annual interest rate is 12%. b. Vito's depreciable equipment has a cost of 30,000, a five-year life, and no salvage value. The equipment was purchased in 2011. The straight-line depreciation method is used. c. On November 1, 2013, the bar area was leased to Jack Donaldson for one year. Vito's received K6,000 representing the first six months' rent and credited unearned rent revenue. d. On April 1, 2013, the company paid K2,400 for a two-year fire and liability insurance policy and debited insurance expense. e. On October 1, 2013, the company borrowed K20,000 from a local bank and signed a note. Principal and interest at 12% will be paid on September 30, 2014. f. At year-end, there is a K1,800 debit balance in the supplies (asset) account. Only K700 of supplies remain on hand. Required: 1. Prepare the necessary adjusting journal entries at December 31, 2013. 2. Determine the amount by which net income would be misstated if Vito's failed to make these adjusting entries. (Ignore income tax expense.)