a. Prepare journal entries to record the following transactions of Daisy King Ice Cream Company. If an entry is not required, state "No Entry."

On December 1, 2020:

1. Started business by issuing 10,000 shares of common stock for $20,000.

2. Leased a building for three years at $500 per month and paid six months' rent in advance.

3. Purchased equipment for $5,400, signing a two-year, 10% note.

4. Purchased $4,000 of supplies on account.

For the month of December:

5. Recorded cash sales of $5,000 for the first month.

6. Paid salaries of $1,280 through 12/20/20.

7. Paid for supplies purchased in item (5).

b Using the journal entries for 1a, create an unadjusted trial balance (attached).

Hint: it may be helpful to use t-accounts for some of the accounts.

c. Based on the information in 1a and additional information below, post year-end adjusting entries to the trial balance and create an adjusted trial balance.

• Supplies inventory balance at 12/31/20 was $1,800
• Equipment has an estimated nine-year useful life and Daisy King uses straight-line depreciation.
• Salaries from 12/21/20 12/31/20 of $640 will be paid on 1/1/21.

d. Prepare the year-end closing journal entries (close to retained earnings).