Add Category View Zoom Question 1 Journal Entries T-accounts + Adj. Trail Balance AIMES CORPORATION Balance Sheet December 31, 2016 Cash Inventory Prepaid Insurance Equipment 30,000 30,750 5,600 38,000 104,350 Total Assets Accounts payable Interest payable Bonds payable Common stock Retained earnings 13,750 2,500 50,000 25,000 13,100 104,350 Total Liabilities During 2017, the following transactions occurred. Aimes uses a perpetua 1.) Aimes paid $2,500 interest on the bonds on January 1, 2017 2.) Aimes purchased 241,100 of inventory on account 3.) Aimes sold for $480,000 cash inventory which cost $265,000. Aimes 4.) Aimes paid $230,000 on accounts payable. 5.) Almes paid $2,500 interest on the bonds on July 1, 2017 6.) The prepaid Insurance ($5,600) expired on July 31. 7.) On August 1, Aimes paid $10,200 for insurance coverage from August 8.) Aimes paid $17,000 sales taxes to the state. 9.) Paid other operating expenses, $91,000. 10.) Redeemed the bonds on December 31, 2017, by paying $48,000 plu 11.) Issued $90,000 of 8% bonds on December 31, 2017 at 103. The bond Adjustment data: 1.) Recorded the insurance expired from item 7. 2.) The equipment was acquired on Devember 31, 2016, and will be dep 3.) The income tax rate is 30%. (Hint: Prepare the income statement up Instructions 1.) Prepare T. Accounts to determine ending balances 2.) Prepare journal entries for the transactions listed above and adjustil 3.) Prepare an adjusted trial balance at December 31, 2017 4.) Prepare an income statement and a retained earnings statement for