Background Information Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason'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 1st, 2022 was the first day that Mason was in business. For the month of January, record all the necessary journal entries for transactions that occurred during the month. In addition, please prepare all necessary adjusting journal entries as of the end of the month. From the information below, please fill out the 'journal entries' tab for all the necessary journal entries. Furthermore, please complete the 'T-Accounts' tab for the individual accounts so that the 'trial balance' tab can be updated (automatically). I prepared the first journal entry for you in the journal entries tab and T-Accounts tab. Ensure you label the entries how I have for Entry #1. Once all entries are recored and the T-Accounts tab is updated, please prepare the financial statements (income statement and balance sheet) for the month of January JE # Activity For The Month of January 1 Mason Automotive sells 7,000,000 shares at $5 par for $21 on January 1st, 2022. 2 On January 2nd, Mason Automotive receives $36 Million advance payment from a customer, Highland Inc., to manufacture 6,200 cars. Mason Automotive buys a patent from Apple for $18.15 Million on January 3rd, 2022. The patent has a legal life 3 of 22 years and useful life of 21 years. Record the necessary entry as of January 10th, 2022. Assume the patent was purchased using cash. Mason Automotive purchased $180 Million dollars worth of inventory on January 4th, 2022. $88 Million was paid 4 with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory. 5 Ed Mason, the CEO, hires 4,300 employees, whom will receive a combined salary of $8.2 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 6th. Employee's withholdings are as follows: 11% for federal income taxes 5.6% for state income taxes and 7.65% for FICA. Record the necessary entry as of the date of hire, January 1st, 2022. Mason Automotive purchases fixed assets of $160 Million that will have a useful life of 16 years and a salvage 6 value of $50 million on January 8th, 2022. $70 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method.