Background Information all the Mason Automotive is an automotive parts company that sells car parts and provides car service to comers. This is Man's first year of operations and they have hired you as their CPA to prepare the income statement and balance sheet for their company. As such, January 14, 2022 was the first day that Mason was in business. For the mouth of necessary journals for transactions that occumed during the month. In addition, please prepare all senal entries as of the end of the month From the information below, please fill out the male tab for all the necessary journal entries. Further, please complete the T-Acetab for the individual accounts so that the the first journal entry for you in the jal tab can be updated tab and a Eure you label the atically). I propul show have for Entry Once all entries are record and the tab is updated, please prepare the financial statements income state and balance sheet for the month of January Activity For The Month of January Mason Automotive sells 7,000,000 shares at $5 put for 521 on January 1st, 2022. On January 2nd, Mason Automotive ecceives 536 Million advance payment from a comet Highland Inc. to manufacture 6,200 cars Mason Automotive buys a patent from Apple for 518.15 Million on January 3rd, 2022. The pet has a legal life of 22 years and useful life of 21 years. Record the necessary entry as of January 10th, 2022 Ame the potent was purchased sing cas Mason Automotive purchased $180 Million dollars worth of inventory on January 4, 2022 588 M was paid with cach with the remaining balance on account. Mason notes that it w 10 Ed Mason, the CEO, his 4,300 employees, whom will receive a combined salary of 58.2 Million on a monthly basis. The employees stated on January 1st and will be paid for the month of January on February 6th Employer's withholdings an as follows 1% for federal income taxes 56% for state income taxes and 7.60% for FICA Recond they entry of the date of hire, January 1st, 2022 Masen Automotive purchases flood assets of $160 Million that will have a useful life of 16y $50 million on January 8th, 2022. 570 million was paid with c depreciated using the straight-line meth Mason Automotive issues a bond payable on January 11th, 2822 with a face value of $130 have a useful life of 14 years with an interest payment of 8.25% Chrmal Percentage Rates due at Record the necessary journal entry as of January 8th, 2822 The bond will and of the moth Note: When considering the motination of the discount or premium, assume the sight line method is used. Interest he accrued on a monthly basis Mason Automotive pro-pays for rest Expense for the next four years of 526 Million on January 1st, 2022. Mason Automotive purchased $7.5 Million dollars worth of supplies account on January 13 2122 On January 15th, Mason Automotive shipped two orders to Panther Paws Computation. The shipping tems were FOB Destination. The first part of the delivery was received by Pather Paws on January 27th with a sales and the inventory cost was 587 Million. The second part of the delivery was received on February 3nd with a sales valac $250 Million and an inventory cost of $175Million Assume that this sale was made on accou 11 On January 23rd, Mason Automotive decides to purchase 142,000 shares of Tressary stock at $22.5 per share. Mouth End Adjusting Entries There are 10 applicable adjusting.cntries that need to be made as of the end of the month based on the information provided. above. When reconding these adjusting entries consider the following fa Interest expense will be recorded as an operating expone non i Record the necessary adjusting entries related to pre-paid expense a When reviewing the supply room as of the end of the mouth, Mason Automation noted that supplies still on hand As of the end of the month, 4,200 cars were completed for Highland Inc and the performance obligation! hose 4.200 cars. As sach, revenue was determined to be camed on these 4.200 vehicles and it costed $7.000 so manufacture. (These journal entries are considered 2 of the 10 total st Masen Automation wes the balance sheet approach in muting the allowance for doubts of the end of the period. Based on industry average, Mason noted that it will use 82% of receivablestin There should be no apolated to payroll: Note on Balance Sheeti When preparing the balance sheet, close out set income to retained earnings.