Ajayi Art, Inc. opened for business on April 1^st. Listed below are the transactions for Ajayi Art, Inc. for the month of April:

• April 1 Issued common stock in exchange for $250,000 cash.
• April 1 Purchased office equipment for $17,500 cash.
• April 1 Borrowed $20,000 from Novus Bank and signed a 10% note. Interest and principal to be paid in 12 months.
• April 5 Paid $4,000 rent in advance for the art gallery for the next two months.
• April 10 Purchased art supplies from Wacky Art Co. on account for $12,200.
• April 12 Received $5,300 from a customer who commissioned a piece of custom art to be completed by the end of the year.
• April 15 Paid miscellaneous office expenses totaling $285 in cash.
• April 17 Billed customers $3,400 for art classes provided in March.
• April 19 Paid $5,300 to Wacky Art Co.
• April 25 Received $2,200 from customers on account.
• April 30 Recorded $3,800 in salaries for the month of April. Paychecks will be disbursed to employees on May 2^nd.

Using an Excel spreadsheet, prepare the following:

1. Using the ACT350_CTTemplate_Mod2.xlsx file (in the module folder), enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Use the following ledger accounts: Cash, Accounts Receivable, Supplies on Hand, Prepaid Rent, Office Equipment, Accumulated Depreciation, Accounts Payable, Common Stock, Service Revenue, Rent Expense, Miscellaneous Office Expense, Office Salaries Expense, Supplies Expense, Depreciation Expense, Retained Earnings, Unearned Revenue, Office Salaries Payable, Notes Payable, Interest Payable, and Interest Expense.
2. Prepare an unadjusted trial balance.
3. Record depreciation using a five-year life on the office equipment, the straight-line method, and no salvage value. Round to whole numbers. Also, record an adjustment for art supplies used in the amount of $2,510 and record interest expense for the note.
4. Prepare an adjusted trial balance.
5. Prepare an income statement, a statement of retained earnings and an unclassified balance sheet.

ASSETS Cash Accounts Receivable Office Equipment Prepaid Rent Supplies Accumulated Depreciation LIABILITIES Accounts Payable Notes Payable Interest Payable Salaries Pavable Unearned Revenue STOCKHOLDERS' EQUITY Ajayi Capital Retained Earnings TEMPORARY ACCOUNTS Service Revenue Salaries Expense Supplies Expense Supplies Expense Interest Expense Depreciation Expense Cost of Goods Sold Salaries Expense YOUR COMPANY Unadjusted Trial Balance As of [Date] Credit Accounts Cash Accounts Receivable Supplies on Hand Prepaid Rent Office Equipment Accounts Payable Unearned Revenue Office Salaries Payable Notes Payable Ajayi-Capital Service Revenue Miscellaneous Office Expense Office Salaries Expense TOTAL YOUR COMPANY Adjusted Trial Balance As of [Date] Debit Credit Accounts Cash Accounts Receivable Supplies on Hand Prepaid Rent Office Equipment Accumulated Depreciation Accounts Payable Unearned Revenue Office Salaries Payable Interest Payable Notes Payable Ajayi-Capital Service Revenue Supplies Expense Depreciation Expense Miscellaneous Office Expense Office Salaries Expense Interest Expense TOTAL YOUR COMPANY Income Statement For the year ended [Date] Sales revenue Expenses: Miscellaneous Office Expense Office Salaries Expense Supplies Expense Interest Expense Depreciation Expense Total Expenses Net Income (Loss) Net Income YOUR COMPANY Statement of Retained Earnings For the year ended [Date] Retained Earnings, Date] Add: Net Income or Subtract: Net Loss Retained Earnings, Date] YOUR COMPANY Balance Sheet As of [Date] ASSETS Cash Accounts receivable Supplies on Hand Prepaid Rent Office Equipment Less: Accumulated depreciation TOTAL ASSETS LIABILITIES Accounts payable Unearned Revenue Office Salaries Payable Notes Payable Interest Payable Ajayi-Capital TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY