Hint: Please review Chapter 4 in-class practice and analysis video before working on homework 4. Step 1 Journalizing transactions - journal or T account Carson Catering January 1, 2022 Transaction 1. Don Carson invested $71,000 in the business Transaction 2. The business spent $640 in advertising Transaction 3. The business purchased a one-year insurance premium of $8,400 using loan from the bank. The insurance coverage is from Jan 1, 2022 through Dec. 31, 2022. Transaction 4 . The business catered a dinner party and received $5,300 Transaction 5. Don Carson withdrew $1,200 from the business Accounts you will use include Cash, Capital, Drawing, Advertising Expense, Notes Payable, Catering Revenue, Prepaid Insurance, Insurance Expense, Income Summary. Step 2 Posting - transfer the debts and credits from journals to the ledger accounts Step 3 Trail Balance - summarizing the ledger accounts to prove the equality of debits and credits Step 4 Preparing adjusting entries - determining the adjustments and recording them in the general journal - The one month's insurance Step 5 Posting adjusting entries Step 6 Adjusted trail balance Step 7 Financial statements - rearranging the adjusted trial balance into an income statement and a balance sheet Step 8 Recording and posting closing entries Step 9 Post-closing trial balance