Comprehensive Problem - Fred Silverman began a business called Silverman Accounting Service on March 1, 2022. You have just been hired as the bookkeeper for the business. The following transactions occurred during the first month of operations: 3/1 Silverman Accounting Service began operations when Fred invested $14,000 cash, a computer worth $4,000, and office furniture worth $12,000. This can all be recorded in one journal entry, all of this is considered an owner investment (hint-you will have 3 debits and one credit). 3/1 The business purchased insurance and paid $3,000 cash for a six-month policy. The policy coverage period begins on March 1 of this year. 3/2 They moved into the new office space and paid $4,000 for the monthly rent. 3/4 The owner went to the office supply store and purchased $800 of office supplies for cash. 3/12 The business performed accounting services for a client and received $3,000 in cash. (Note there are two revenue accounts, keep this in mind every time you record either accounting service revenue or service revenue). tax 3/15 Fred completed a complicated tax return for a client and sent them an invoice for $6,000. The client agreed to pay before the end of the month. 3/18 You calculated the payroll costs and paid the employees' salaries of $2,000. 3/19 The business purchased supplies of $1,500 on account (for credit, we will pay for these supplies later). 3/20 Finished an accounting services job and received $5,000 cash. 3/22 Collected $4,000 in advance for tax services to be completed next month. 3/25 Collected $6,000 from the client billed on 3/15. 3/27 Received the utility bill of $2,500. The bill will be paid next week. 3/28 Performed accounting services on account (for credit, we will collect this money next month), $3,500. 3/30 Paid $1,000 of the amount we owed from the 3/19 purchase. 3/31 Fred withdrew cash of $7,500. 1. Record each transaction in the general journal using the following chart of accounts. Explanations are not necessary. 2. 101 Cash 105 Accounts receivable 110 Office supplies 115 Prepaid insurance 130 131 140 141 Computer equipment Accumulated depreciation, computer equipment Furniture Accumulated depreciation, furniture 201 Accounts payable 205 Salaries payable 210 301 301 401 402 502 Unearned tax services revenue F. Silverman, Capital F. Silverman, Withdrawals Accounting services revenue Tax service s revenue Rent expense 504 Office supplies expense 506 Salaries expense 508 Utilities expense 520 522 Depreciation expense, computer equipment Depreciation expense, furniture 530 Insurance expense Post the transactions to the T-accounts and then compute the balance in each account. 3. Journalize the following adjusting entries: a. Accrued salaries expense as of the end of the month is $2,500. b. Depreciation on the computer equipment is $100 and depreciation on the office furniture is $500. b. C. Depreciation on the computer equipment is $100 and depreciation on the office furniture is $500. One month's worth of prepaid insurance has expired. 4. d. e. Office Supplies on hand at the end of the month are $350. You analyzed the unearned tax services revenue account and determined that the company had earned $400 of that amount during March. f. Accounting Service Revenue of $750 has been earned but not yet recorded or collected. Post the adjusting entries you prepared in part 3 to the same T-accounts from part 2 and calculate the new adjusted balances. 5. Prepare an adjusted trial balance. 6. Prepare the Income Statement for the month ended March 31, 2022. 7. Prepare the Statement of Owner's Equity for the month ended March 31, 2022. 8. Prepare the balance sheet on March 31, 2022