Hey Service Corporation (2022): Hey Service Corporation (HSC) is a service company that was started January 1, 2022, by Amy to offer clients within the New York area complete support for the care and upkeep of their homes. HSC allows busy homeowners to maintain their home both inside and out when they do not have the capability or sufficient time and energy to do so. The Hey Service can encompass cleaning and maintenance service inside the home, as well as yard maintenance as well as landscaping and gardening outside the home. Amy presume that the primary customers will be millennials and senior citizens. Over the course of the first year

Over the course of the first year of operations, the following events occurred:

Jan 1: Amy incorporate Hey Service Corporation using an online incorporation service. The service charges them $10000 to incorporate the company with two shareholders. Each sibling received 100 shares in the corporation.

Jan 2: Amy go to the bank and set up a company bank account and transfer $100,000 of their personal funds to the company bank account and write a check to pay for the incorporation service.

Jan 2: Amy borrow $2,500,000 from the bank (using their parents home as collateral) of which $2,000,000 is to purchase a small building just outside of New York to house their equipment and to set up an office. The bank charges them 6% interest on the loan, which is to be repaid in 2033.

Jan 3: HSC purchase a commercial business insurance policy for general liability. The cost is $2000 per year which is paid monthly. The first payment is backdated to January 1.

Jan 4: HSC purchases a Town of NewYork business license for two calendar years at a cost of $6,000, which is paid with the company bank card.

Jan 30: Amy buy several pieces of landscaping and cleaning equipment which include: a) 2 Industrial Vacuums: $5000 each expected to last 10 years. b) 2 Industrial Riding Lawn Mowers: $10,000 expected to last 5 years. c) Two Used Trucks: $30,000 expected to last 5 years. d) Two used snowblowers costing $3000 each to last 3 years.

February 28: HSC signs a contract with a local marketing firm. The marketing firm will receive $6,000 per month for the March-June period. In return, they will actively promote them business on social media.

March 1: Amy pay $11,000 for design of a website, which will be good for 2 years before it needs to be redesigned.

March 1: During the month, Amy visited different organizations catering to the elderly to promote the Hey Service Corporation service. They spent $500 on lunch and paid with a personal bank card.

April 1: The socializing with the elderly organization pays off as 5 families signed contracts to provide both cleaning and gardening support for their elderly grandparents living in their own homes. Each contract requires the family to pay $400 a month for 12 months in total, which is for 6 months of cleaning and landscaping service, and 6 months of cleaning and snow clearing service. Each client pays a $1100 deposit on April 1.

April 15: Amy buy grass seed and fertilizer to be applied after every lawn cutting at a cost of $1900 that will have to be replenished on September 1.

May-December 31: Hey Service Corporation had revenues of $350,000. This amount does not include the original $5,000 deposit provided by 5 families for the elderly support on April 1.

Between May 1st and December 31st, Hey Service Corporation paid $1800 a month for gas and oil for the Trucks, Lawn Mowers and Snowblowers.

On October 31st, Amy got the trucks winterized for $1000 each and the Snowblowers serviced for $250 each.

Cash wage payments for the year were $45,000.

Required:

Complete all the required journal entries, including adjusting entries and an Adjusted Trial Balance. Assume that the building is depreciated on a straight-line basis over 30 years. All journal entries must be dated and include an explanation. If there are any events that do not require a journal entry, please provide an explanation as to why not.