Atlas Pen Company (APC) sells fine pens in its retail store location based in Chicago, Illinois. APC has the following November 30, 2022 Trial Balance listed below for the first 11 months of its fiscal 2022 operations. November 30, 2022 Trial Balance - APC (1) Furniture, Fixtures \& Equipment for the shop was purchased on 1/1/19 and is being depreciated over 10 years, Straight-line method with no residual value. Note, 11 months of 2022 depreciation has already been expensed. (2) Building was purchased on purchased on 1/1/19 and is being depreciated over 20 years, Straight-line method with no residual value. Note, 11 months of 2022 depreciation already has been expensed. (3) The $50k Notes Payable was issued on 1/1/22 and will only be fully due on 1/1/25. Interest and note will be paid on 1/1/25 (i.e., no payments until final maturity date). Interest rate is 6% annually. APC has the following transactions during the month of December 2022: Dec 1 - Issue Common Stock for $100,000 and receive cash from new stockholders. Dec 3 - Purchases 2,500 units of fine pens inventory for $50 per unit ($125,000 total) on account Dec 5 - Purchases 1,500 units of fine pens inventory for $60 per unit ($90,000 total) on account Dec 7 - Purchases 1,000 units of fine pens inventory for $70 per unit ($70,000 total) on account Dec 9 - Sells 9,300 units at $150 per unit on account - $1,395,000 total revenue (FIFO inventory method is used for cost purposes - Note: 2-part journal entry) Dec 11 - Receives cash of $1,225,000 from customers for prior sales on account Dec 13 - Pays $150,000 in cash for prior vendor purchases made on account Dec 14- Purchases 500 units of fine pens inventory for $72 per unit ($36,000 total) on account Dec 18 - Sells 2,700 units at $150 per unit on account - $405,000 total (FIFO inventory method is used for cost purposes - Note: 2-part journal entry) Dec 23 - Receives cash of $525,000 from customers for prior sales on account Dec 26 - Pays $125,000 in cash for prior vendor purchases made on account Dec 28 - Write-off accounts receivable as uncollectible - $22,000 Dec 28 - Pay for employee salaries in cash - $305,000 Dec 28 - Pay for December Advertising expense in cash - $600,000 Dec 30 - Pay for monthly rent in cash - $30,000 Dec 31 - Pay dividends to shareholders in cash, $300,000 Dec 31 - Sell Building for $980,000 and receive cash. Note, no need to record December 2022 depreciation related to the Building. APC has the following adjusting entries which need to be recorded as of 12/31/22 as well: 1. Uncollectible accounts are determined using an aging methodology. The company has determined that there are $50,000 of the total accounts receivable balance that are aged and should be reserved for at 20%. The balance of the accounts receivable is estimated to have 1% as uncollectible. Please prepare the appropriate adjusting journal entry for the Accounts Receivable allowance. (Hint: Use Accounts Receivable and Allowance for Uncollectible Accts T Account balances to calculate.) 2. The Furniture, Fixtures \& Equipment was purchased 4 years ago and is being depreciated over 10 years on a straight-line basis with no residual value. APC has recorded monthly depreciation expense during 2022, but has not recorded the entry for December 2022 depreciation and will need to make the adjusting entry accordingly. 3. APC has a Notes Payable that has both the principal and interest due on 1/1/25. APC has accrued the interest expense for the first 11 months of fiscal 2022, but has not yet recorded the entry for December 2022. Please record the December adjusting entry to recognize the interest expense. Note, the annual interest on the Notes Payable is 6%. 4. APC estimates that accrued income taxes are $133,000 for 2022. Please make the appropriate adjusting entry. Please perform the following related to APC's accounting in December 2022: 1. Record all regular journal entries and adjusting journal entries. (12 Points) Note: All of the accounts used by APC are listed in the opening Trial Balance, but Bad Debt Expense, Income Tax Expense, Income Tax Payable, Loss on Sale of Building, and Dividends are all at zero balances to start the month of December 2022. These accounts will be used in December 2022 journal entries. 2. Prepare an Adjusted Trial Balance as of 12/31/2022. (12 Points) (Note: Use T Accounts to assist) 3. Prepare Financial Statements as of 12/31/2022 for APC (12 Points) a. Income Statement - Multi-Step b. Statement of SH Equity c. Balance Sheet