create a balance sheet, income statement and a post closing trial balance. January $2$Paid Mass Media $$4,200\mathrm{.}00$ for prepaid advertising in local newspapers for the next $12$ months.January $2$Paid Pierce Properties $$2,750\mathrm{.}00$ for January rent. Of this amount, $25\%$ is for office facilities and $75\%$ is for factory facilities.January $2$Paid Owens Insurance $$6,000\mathrm{.}00$ for prepaid insurance for the first quarter of the yearJanuary $3$Received a check from Horsfield Happy Ice Cream as partial payment on account in the amount of $$5,000\mathrm{.}00.$January $3$Paid Rockaway Metal the balance of $$2,873\mathrm{.}00$ on account.January $4$Sold two ice cream systems to Day Dreamers Ice Cream. The estimated direct labor is $$8,200\mathrm{.}00.$ The estimated direct material is $$3,350\mathrm{.}00.$ The estimated indirect material is $$350\mathrm{.}00.$ Day Dreamers is to be billed in the amount of $$20,925\mathrm{.}00$ on account. A check for $$5,000\mathrm{.}00$ will be collected as a deposit against that sale. The start date will be January. The date promised will be January $23.$ Assign the contract to Job $74.$January $5$Mountain Swirl Ice Cream purchased and took delivery of one ice cream machine for $$7,500\mathrm{.}00.$ Record the sale and the cost of the sale. Markup is $150\%$ of cost$.$ Transfer cost from Finished Goods to COGS.January $6$Purchased indirect material on account from Electrical Systems Corp. in the amount of $$3,643\mathrm{.}00.$ Set up a new Accounts Payable account, and record the purchase.January $6$Purchased factory supplies on account from Grommet Supplies in the amount of $$847\mathrm{.}21.$ Set up a new Accounts Payable account, and record the purchase.January $9$Assign the manufacture of one ice cream machine to Job $75.$ A direct material requisition shows $$1,450\mathrm{.}00$ of direct materials, and an indirect materials requisition shows $$170\mathrm{.}00$ of indirect materials. A time card shows $$3,650\mathrm{.}00$ of direct labor for the completed job. Factory overhead is based on $25\%$ of direct labor cost. Transfer the completed job from Direct Material and Indirect Material to the Finished Goods account. When making the journal entry for applying direct labor, debit Finished Goods for the gross pay and credit FWT Payable and FICA Tax Payable for the appropriate amounts with the net pay going to Salaries Payable.January $10$Receive a check from Horsfield Happy Ice Cream as partial payment on account in the amount of $$5,000\mathrm{.}00.$January $10$Receive a phone bill in the amount of $$1,402\mathrm{.}22$ from Unique Telephone Systems on account.January $15$Paid Liberty Bank $$2,435\mathrm{.}79$ for December payroll taxes payable for the amounts of FWT Payable, $$1,613\mathrm{.}11$; FICA Tax Payable, $$822\mathrm{.}68.$January $15$Assign Job $76$ to Cold Refrigeration for the purchase of a refrigeration system. The start date will be January $16.$ The completion date will be no later than February $28.$ The estimated direct material is $$9,175\mathrm{.}00.$ The estimated indirect material is $$1,860\mathrm{.}00.$ The estimated direct labor is $$15,600\mathrm{.}00.$ The contract amount is $$45,800\mathrm{.}00.$ A deposit of $$10,000\mathrm{.}00$ was provided by Cold Refrigeration in signing the contract. The deposit is unearned revenue. Half of the contract will be billed upon $50\%$ completion with the deposit applied against that billing with the remaining amount due immediately. A quarter of the contract will be billed upon $75\%$ completion of the contract with the amount due immediately. The remaining amount of the contract is to be billed when the job is $100\%$ complete and is payable within $30$ days of the billing.January $16$Purchased $$4,441\mathrm{.}00$ of factory supplies from Johnston Equipment paid in cash.January $16$Purchased $$2,965\mathrm{.}00$ of direct materials from Smith Synthetics on account.January $16$Purchased $$427\mathrm{.}50$ of office supplies from OfficeMax on account.January $19$Apply from direct materials requisition $$2,800\mathrm{.}00$ of direct materials. Apply from indirect materials requisition $$325\mathrm{.}00$ of indirect materials. Apply from time cards $$7,950\mathrm{.}00$ of direct labor to Job $74$ completing the job. Applied factory overhead is based on $25\%$ of direct labor cost. Transfer the completed job to the COGS account from Direct Material and Indirect Material and Factory Overhead accounts. When making the journal entry for applying direct labor, debit COGS for the gross pay and credit FWT Payable and FICA Tax Payable for the appropriate amounts with the net pay going to Salaries Payable.January $20.$ Paid the electric bill from Susquehanna Electric in the amount of $$2,356\mathrm{.}21$ for the month of December. Allocate $30\%$ to Factory Overhead.January $20$Paid the FUTA Tax Payable for the previous year.January $20$Paid the SUTA Tax Payable for the previous year.January $23$Ashman Alcove Designs paid the balance on account.January $27$Paid O$-$Ring Enterprises the balance owed on account.January $27$Paid post office $$300\mathrm{.}00$ cash for postage added to postage meter.January $28$Apply from direct materials requisition $$4,600\mathrm{.}00$ of direct materials. Apply from indirect materials requisition $$950\mathrm{.}00$ of indirect materials. Apply $$8,000\mathrm{.}00($from time cards$)$ of direct labor and factory overhead to Job $76,$ completing $50\%$ of the job. Factory overhead is based on $25\%$ of direct labor cost. Transfer the partially completed job from Direct Material and Indirect Material to WIP. When making the journal entry for applying direct labor, debit WIP for the gross pay and credit FWT Payable and FICA Tax Payable for the appropriate amounts with the net pay going to Salaries Payable. Set up the accounts receivable and bill Cold Refrigeration for $50\%$ of the contract on account, applying the initial $$10,000\mathrm{.}00$ deposit against the billing.January $29$Received a check from Cold Refrigeration in the amount of $$12,900\mathrm{.}00$ on account.January $31$Received the following data for the monthly payroll:Direct labor $($already recorded$)$ $$19,600\mathrm{.}00$Sales commission $5,132\mathrm{.}50$Officers salaries $5,000\mathrm{.}00$Office salaries $1,920\mathrm{.}00$Record the monthly payroll. Direct labor payroll has already been recorded, as it was incurred in January. Debit other salary expense accounts for the appropriate amounts; credit FWT Payable for $15\%$ of gross pay; credit FICA Tax Payable for $7\mathrm{.}65\%$ of gross pay; and credit Salaries Payable for the net pay. Record the payroll taxes imposed on the employer for all personnel for the month of January. $($Prepare the Schedule of Employer Payroll Taxes Allocation using the appropriate tax rates.$)$January $31$Received a check from Messina Missions for the balance on account.January $31$Received a check from Horsfield Happy Ice Cream for the remaining balance on account.January $31$Paid all employee wages earned in Janua