Gary Whitmore opened his new retail business of selling scented candles called Flavia Scent Inc., on April 1, 2020 with a cash investment of $15,000. Flavia Scent Inc. follows the fiscal yean starting April 1 and adjusts monthly. The following activities/transactions occurred during the month of April 2020: April 1 Gary invested $15,000 cash to start the business. April 1 Gary paid $6000 cash for 6-months' rent extending from April 1 till September 30, 2020 April 2 Paid $1200 cash for a 2-year insurance policy, effective April 1, 2020. April 2 Hired 2 salespeople for $300 each one payable on a biweekly basis every other Friday for the 12 days' work, Monday till Saturday April 3 Paid for Decoration and equipment through a bank note from NBAD Bank for the amount of $50,000. The note is for 5 years and charges 8% interest. (Consider the partial month as a full month). Flavia Scent bought 200 candles from Occitane for $7 each, FOB Shipping point, terms 3/10-n/30. The responsible party paid $50 transportation fees, April 5 Bought $300 worth of supplies from Malik's Bookshop by paying cash. April 4 April 10 April 12 April 13 April 14 April 17 April 17 April 18 April 18 Sold 150 candles to Forever Bliss Wedding Planners for $12 each, FOB Destination, terms 1/10-1/60. The responsible party paid $10 shipment fees Sold 2 candles to a walk-in customer for a total of $26 cash. The cost of each candle was $7. Gary returned 5 deformed candles to Occitane (Exclude freight charges in your calculation) Gary paid Occitane what it owes Gary withdrew $1000 for his personal use. Gary Paid $600 cash to its 2 employees. Gary paid $200 for advertising on Facebook Forever Bliss returned 10 candles as they were not ordered (Exclude Freight charges in your calculation). Forever Bliss paid in Full Sold 3 candles for $13 each for cash. The cost of each candle was $7. Gary purchased a used delivery Truck for $7000 Cash. Bought 300 candles from Occitane for $8 each, FOB Destination, terms 3/10-n/30. The responsible party paid $10 transportation fee. Sold 100 candles for $10 each for a private dinner party terms 1/10- n/30, FOB shipping point. The cost of 1 candle is $8. The responsible party paid $20 for the shipment. April 19 April 23 April 26 April 26 April 28 April 30 Gary invested another $5000 cash in the business, A. Journalize the entries on the General Journal of Flavia Scent Inc. It uses the Perpetual Inventory System. (31.5%) Consider the following additional information regarding the adjustments necessary at the end of the month. The Decoration and Furniture is expected to be used for 10 years with no Salvage Value. The Annual depreciation is $5000. April 30, 2020 is a Thursday. The physical inventory checkup revealed the actual ending inventory is $1940. The supplies on hand at April 30 was worth $100 only. The truck will be depreciated $100 a month. NOTE: THESE ARE NOT THE ONLY ADJUSTING ENTRIES. THERE ARE 3 MORE. B. Journalize the adjusting entries on April 30, 2020. (16%) C. Prepare the necessary Closing entries on April 30, 2020. (10%) D. Prepare Multiple Step Income Statement for the month ended April 30, 2020. (20%) E. Prepare the Classified Balance Sheet at April 30, 2020. (23%)