Daniels Company engaged in the following transactions during 2020: a. Purchased $20,000 of merchandise from XYZ Supplies on January 26. Amount due in full on February 28. b. Paid for 40% of the purchased merchandise (Transaction a) on February 26. On February 28, negotiate a payment extension with XYZ for the remainder of the balance from the January 26 purchase by signing a 1-year, 8% note. d. Borrowed $200,000 on an 8-month. 9% interest bearing note on July 31. e. Purchased $150,000 of merchandise on August 2. Amount due in full on September 30 1. Paid for the purchased merchandise (Transaction e) on September 28. g. Received from Martel Inc. on October 4, a $20,000 deposit against a total selling price of $200,000 for services to be performed for Martel n. Paid quarterly instaliments of Social Security, Medicare, and individual income tax withholdings, as shown below, on October 10. The Social Security and Medicare were previously recorded as expenses during the quarter and the amounts paid represent both the employee and employer shares (50% each) $260,000 Social Security taxes withheld Medicare taxes withheld Federal income taxes withheld 65,516 790,000 1. On December 15, Daniels completed the services ordered by Martel on October 4. Martel's remaining balance of $180,000 is due on January 31 eBook Requirea 1. Prepare journal entries for these transactions 2. Prepare any adjusting entries necessary at December 31, 2020, Chart of Accounts CHART OF ACCOUNTS Daniels Company General Ledger ASSETS REVENUE 111 Cash 411 Sales Revenue 412 Service Revenue 413 Interest Income 414 Rent Revenue 112 Petty Cash 121 Accounts Receivable 123 Allowance for Doubtful Accounts 124 Notes Receivable 125 Supplies 126 Prepaid Insurance 127 Prepaid Rent EXPENSES 511 Cost of Goods Sold 512 Advertising Expense 513 Supplies Expense 128 Inventory 129 Interest Receivable 130 Investment 131 Land 132 Buildings 133 Equipment 134 Furniture 135 Trucks 139 Accumulated Depreciation 514 Utilities Expense 515 Insurance Expense 516 Repairs and Maintenance Expense 517 Bad Debt Expense 518 Rent Expense 519 Warranty Expense 521 Wages Expense 523 Commissions Expense 524 Social Security Taxes Expense 525 Medicare Taxes Expense 526 Federal Unemployment Taxes Expense 527 State Unemployment Taxes Expense 531 Interest Expense 541 Amortization Expense 542 Depreciation Expense 551 Income Taxes Expense 552 Property Taxes Expense LIABILITIES 211 Accounts Payable 212 Utilities Payable 213 Insurance Payable 214 Interest Payable 215 Warranty Liability 216 Income Taxes Payable 221 Excise Taxes Payable (Federal) 222 Excise Taxes Payable (State) 223 Property Taxes Payable 224 Sales Taxes Payable (State) 231 Wages Payable 224 Sales Taxes Payable (State) 231 Wages Payable 233 Commissions Payable 234 Federal Income Taxes Withholding Payable 235 State Income Taxes Withholding Payable 236 Social Security Taxes Payable (Employee) 236.1 Social Security Taxes Payable (Employer) 237 Medicare Taxes Payable (Employee) 237.1 Medicare Taxes Payable (Employer) 238 Charitable Contributions Payable 239 Union Dues Payable 241 Federal Unemployment Taxes Payable 242 State Unemployment Taxes Payable 251 Unearned Service Revenue 261 Bonds Payable Notes Payable 262 EQUITY 311 Common Stock 321 Retained Earnings 331 Dividends GENERAL JOURNAL DATE ACCOUNT TITLE POST REF DEBIT CREDIT ASSETS 1 2 5 6 7 8 9 30 11 12 13 13 14 1 16 11 19 20 21 22 25 2. Prepare any adjusting entries necessary at December 31, 2020 2. Prepare any adjusting entries necessary at December 31, 2020 GENERAL JOURNAL CREDIT DEBIT ASSETS POST. REF DATE ACCOUNT TITLE Adjusting Entries 1