6. Post adjusting entries and prepare an adjusted trial balance. Plant Assets, Natural Resources, a In dition to purchasing the franchise, Top Quality Appliance- Long Beach will also ase land with an existing building to use for its retail store, store fixtures, and office equipment. The business will purchase appliances from TQA and resellthem in its store, primarily to local building contractors for installation in new homes. Following is the chart of accounts for Top Quality Appliance- Long Beach. As a new business, all beginning balances are So Top Quality Appliance-Long Beach Chart of Accounts Cash Petty Cash Accounts Receivable Allowance for Bad Debts Merchandise inventory Office Supplies Prepaid insuran Interest Receiveble Notes Receivable Land Building Accumulated Depreciation-Building Store Fixtures Accumulated Depreciation-Store Fixtures Office Equipment Accumulated Depreciation-Office Equipment Franchise Accounts Payable Interest Payable Notes Payable Common Stock Retained Earnings Dividends Sales Revenue Interest Revenue Cost of Goods Sold Franchise Fee Expense Salaries Expense Utilities Expense Insurance Expense Supplies Expense Bad Debt Expense Bank Expense Credit Card Expense Depreciation Expense-Building Depreciation Expense-Store Fixtures Depreciation Expense-Office Equipment Amortization Expense-Franchise Interest Expense Cash Short and Over Top Quality Appliance-Long Beach completed the following transactions during 2018, its first year of operations: Received $500,000 cash and issued common stock. Opened a new checking account at Long Beach National Bank and deposited the cash received from the stockholders. a. b. Paid $50,000 cash for a TQA franchise. Paid $200,000 cash and issued a $400,000, 10-year, 5% notes payable for land with an existing building. The assets had the following market values: Land, $100,000; Building, $500,000 c. d. Paid $75,000 for store fixtures. Paid $45,000 for office equipment. e. f. Paid $600 for office supplies. g. Paid $3,600 for a two-year insurance policy. h. Purchased appliances from TOA (merchandise inventory) on account for $425,000. i. Established a petty cash fund for $150. j. Sold appliances on account to B&B Contractors for $215,000, terms n/30 (cost, $86,000) k. Sold appliances to Davis Contracting for $150,000 (cost, $65,000), receiving a 6-month, 8% note. I. Recorded credit card sales of $80,000 (cost, $35,000), net of processor fee of 2%. m. Received psyment in full from B&B Contractors. n. Purchased appliances from TQA on account for $650,000. o. Made paymen: on account to TQA, $300,000. p. Sold appliances for cash to LB Home Builders for $350,000 (cost, $175,000). q. Received payment in full on the maturity date from Davis Contracting for the note. r. Sold appliances to Leard Contracting for $265,000 (cost, $130,000), receiving a 9-month, 8% note. Made payment on account to TQA, $500,000. Sold appliances on account to various businesses for $985,000, terms n/30 (cost, $395,000). Collected $715,000 cash on account. Paid cash for expenses: Salaries, $180,000; Utilities, $12,650 Replenished the petty cash fund when the fund had $62 in cash and petty cash tickets for $85 for office supplies. Paid dividends, $5,000. Paid the franchise fee to TQA of 5% of total sales of $2,045,000. s. t. u. v. w. x. y, 0 Beginning Balance, January 1, 2018 Deposits and other credits: $500,000 78,400 215,000 350,000 715,000 1,565 Interest Revenue 1,859,965 Checks and other debits: EFT to Bank Checks() Checks: 125 50,000 200,000 45,000 75,000 150 3,600 600 300,000 500,000 192,650 2,340 (1,369,465) $ 490,500 Bank service charge Ending balance, December 31, 2018 Bank Checks is a company that prints business checks (considered a bank expense) for Top Quality Appliance-Long Beach