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In late November, Rosemary Sage incorporated her family business, St. Tammany Organic Farm and Retreat, Inc. She grows organic fruits and vegetables and keeps a

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In late November, Rosemary Sage incorporated her family business, "St. Tammany Organic Farm and Retreat, Inc." She grows organic fruits and vegetables and keeps a variety of free range animals. Guests visit for relaxation, rejuvenation, swimming, and farm grown specialties. She enters into the following transactions in December. Part 1) Record your journal entries in the space provided below each individual event. Dec. 1. Rosemary invested $50,000 cash and 20,000 of equipment in the company in exchange for common stock. Dec. 2 The Create Channel paid Rosemary S25,000 in advance to shoot a segment on Rosemary and her organic farm and guesthouse. This commitment requires Rosemary to work with them over the next couple of months. Dec. 2. Rosemary paid $12,000 cash in advance to cover 4 month's insurance for her business. Coverage is to start immediately Dec. 3 Rosemary bought $8,000 of farm supplies on account. Dec. 15. City Park Yoga Center rented the guesthouse for a retreat on credit. Rosemary sent a bill for $4,000. Retreat participants departed December 14. Dec. 20. Rosemary paid $5,000 towards her account incurred previously for farm supplies. Dec. 30. The business paid Rosemary a $6,000 dividend. Part 2) Post your Journal entries to the ledgers provided. Part 3) Adjusting Entries - Please record adjusting entries as of Dec. 31 based on the facts below. Please show your calculations. 1) Record one month's depreciation on the equipment. The equipment cost $20,000 is estimated to have a $5,000 salvage value and a 10 year life. (Note: For one month's depreciation take the annual amount and divide by 12) 2) During December, Rosemary completed 1/2 of on work for the Create Channel's segment on her farm and guesthouse. (The Create Channel had paid her $25,000 in advance to work with them over a two month period.) 3) Record the expiration of one month's pre-paid insurance during December. (Rosemary had paid $12,000 in advance for 4) An inventory at the end of the month revealed that $2,000 of farm supplies remained on hand. (She had bought $8,000 at the beginning of the month.) 5) Towards the end of the month, Rosemary rented the guesthouse to Loyola University for a winter faculty retreat. Loyola has incurred $3,000 of charges to date, but Rosemary has not yet recorded this amount or sent a bill. 6) Late in December, Rosemary hired a farm assistant to help her to pick citrus fruit. The assistant has camed S1500 in salary that will be paid in early January. The amount has not yet been recorded

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