Cr 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 Notes Payable Salaries and Wages expense 500 Depreciation Expense 500 26,500 500 15,000 11,000 26,500 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, n/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, n/30, FOB destination with a freight cost paid of $300. 5. On March 17, Stark Company paid the balance due to Lannister Company. Instructions: a. Prepare the journal entries to record the above transactions on the books of Stark Company b. The Prepaid Insurance was taken on March 1, 2018, for the year. At the end of March $900 of rent was accrued for the month. Prepare adjusting entries at the end of March 31, 2018. C. Prepare the adjusted trial balance at the end of March 31, 2018 d. At the end of the period the physical count of inventory shows $2800 in hand (the beginning balance of inventory is given in the trial balance). Prepare a multi-step Income Statement at the end of March 31, 2018 e. Prepare a Balance Sheet as at March 31, 2018