Cr Sansa Stark has the following accounts in her recently opened business Stark Company March 31, 2018 Trial Balance Dr Inventory 500 Cash 10,000 Prepaid Insurance 1200 Land 8,800 Building 5,000 Accumulated - Depreciation Owner's Capital 15,000 Notes Payable 11,000 Salaries and Wages expense Depreciation Expense 500 26,500 26,500 500 500 During March the following transactions occurred, which were not entered into the accounting record: 1. On March 10, Stark Company purchased $10,000 of merchandise from Lannister Company, terms 2/10, 1/30. 2. On March 12, Paid freight of $500 on merchandise purchased from Lannister Company 3. On March 13, Stark Company returned $1000 of faulty goods to Lannister Company 4. On March 15, Stark Company sold $7,000 of merchandise to Tully Co. at $14,000, terms 1/10, 1/30, FOB destination with a freight cost paid of $300. 5. On March 17, Stark Company paid the balance due to Lannister Company. Stark Company uses perpetual inventory system Instructions: a. Prepare the journal entries to record the above transactions on the books of Stark Company b. Prepare adjusting entries for the following The Prepaid Insurance was taken on March 1, 2018, for the year. . At the end of the period the physical count of inventory shows $3000 of inventory in hand. c. Prepare the adjusted trial balance at the end of March 31, 2018 d. Prepare a multi-step Income Statement at the end of March 31, 2018 e. Prepare closing entries