I.(39 points) A company, Frosty Ice Cream (hereafter, Frosty), buys and sells ice cream for its major business operations. The following business transactions happened in October 2018. Prepare journal entries and adjusting entries for Frosty for October 2018. 1.On October 1, Frosty signed a note and borrowed $300,000 cash for five years from a local bank. The monthly interest charge was $250, and the interest would be paid on a quarterly basis.

2.On October 1, Frosty paid $30,000 cash to Farmers Insurance Company for its property insurance for the following 12 months, starting October 2018.

3.On October 1, Frosty acquired $120,000 inventory, $20,000 of which the company paid in cash on October 1. Frosty promised to pay the remaining balance to its suppliers in the following month.

4.On October 1, Frosty collected $20,000 rent in cash and in advance. The tenant was paying for the next five months rent, starting October 2018.

5.On October 6, Frosty issued additional common stocks for $60,000 cash that the owners invested to the company.

6.On October 12, Frosty acquired $2,500 office supplies on account.

7.On October 16, Frosty sold and delivered merchandise for $220,000 to a new customer. The cost of such merchandise was $100,000 to Frosty. The customer paid $20,000 in cash on October 16 and would pay the remaining balance in 30 days.

8.On October 26, Frosty collected $160,000 in cash from a previous customers account.

9.On October 31, Frosty had incurred salary expenses of $65,000 for the month of October. Frosty paid $60,000 in cash to its employees and would pay the rest on November 3, 2018.

10.On October 31, Frosty had $300 office supplies on hand. Its also known that Frosty had a $500 beginning balance in its office supplies on 10/1/2018.

11.On October 31, please also prepare adjusting entries for its (1) interest charges, (2) rental revenue, and (3) insurance expense, if necessary, for the month of October 2018.