Case 2: PC Depot PC Depot was a retail store for personal computers and hand-held calculators, selling several national brands in each product line. The store was opened in early September by Barbara Thompson, a young woman previously employed in direct computer sales for a national firm specializing in business computers Thompson knew the importance of adequate records. One of her first decisions, therefore, was to hire Chris Jarrad, a local accountant, to set up her bookkeeping system. Jarrad wrote up the store's preopening financial transactions in journal form to serve as an example shown in Table 1. Thompson agreed to write up the remainder of the store's September financial transactions for Jarrard's later review. At the end of September, Thompson has the items shown in Table 2 to record. Table 1. Journal Entry Number Account Amount Debit 165.000 Credit 100.000 65.000 1,485 1,485 137,500 137.500 15,500 Cash Bank Loan Payable (15%) Proprietor's Capital Rent Expense (September) Cash Merchandise Inventory Accounts Payable Furniture and Fixtures (10-year life) Cash Advertising Expense Cash Wages Expense Cash Office Supplies Expense Cash Utilities Expense Cash 15,500 1,320 1.320 935 935 1.100 1.100 275 275 Amount $38.000 14,850 3.614 Table 2. Remaining Transactions Entry Number Account Cash sales for September Credit sales for September Cash received from credit customers, this is after a 5% discount was applied for prompt payment Bills paid to merchandise suppliers New merchandise received on credit from supplier Ms. Thompson ascertained the cost of remaining merchandise was Wages paid to assistant Wages earned but unpaid at the end of September Rent paid for October Insurance bill paid for one year (September 1 - August 31) Bills received, but unpaid, from electric company Purchased sign, paying $660 cash and agreeing to pay the 1,100 balance by December 31 96,195 49.940 151,200 688 440 1,485 2,570 226 1,760 Questions: 1. Explain the events that probably gave rise to the journal entries in Table 1 2. Analyze the facts listed in entries 9 to 20, and prepare the appropriate journal entries for them. 3. What other transactions should be recorded, if any? Prepare the adjusting journal entries and explain why these adjustments are required. 4. Prepare the closing entries. 5. Prepare the income statement for September and the balance sheet as of September 30