In the first month of its operations, Cardinal Corporation, a retailer of home appliances, had the following transactions: (1) Incorporated on August 1, 2022. Issued 6,000,000 shares of common stock for $1.50 per share. (2) Paid $60,000 for rent on administrative offices on August 1st for the next six months. (3) Acquired a warehouse for $1,000,000 cash on August 1. The building has a 50-year life with a $100,000 salvage value. The company uses straight-line depreciation method. (4) On August 2nd, purchased $7,000,000 of home appliance inventory on account. (5) On August 5th, purchased $2,000,000 of home appliance and paid cash. (6) On August 23rd, received an order of $1,000,000 for a construction project. Inventory is to be delivered in April 2023. The construction company paid for 30 percent of the order in cash on August 23rd. (7) On August 24th, received a payment of $150,000 from a customer for appliances to be delivered within 30 days. As of the end of August, the appliances are yet to be delivered. (8) Paid $115,000 in payroll on August 31st; $100,000 to warehouse personnel and $15,000 to administrative staff. (9) Paid utilities of $30,000 on August 31st; $25,000 for the warehouse and $5,000 for the administrative offices. (10) Sales for the month totaled $4,500,000, and 60 percent of sales are credit sales. (11) The cost of inventory sold for the month of August totaled $3,800,000. (12) 2 percent of the outstanding receivables as of August 30 are estimated to be uncollectible. (13) Corporate income tax rate is 21 percent and will be paid in March of next year. (14) Declared cash dividends of $200,000 on August 30 to be paid in January 2023.

In the first month of its operations, Cardinal Corporation, a retailer of home appliances, had the following transactions: (1) Incorporated on August 1, 2022. Issued 6,000,000 shares of common stock for $1.50 per share. (2) Paid $60,000 for rent on administrative offices on August 1 st for the next six months. (3) Acquired a warehouse for $1,000,000 cash on August 1. The building has a 50 -year 11fe with a $100,000 salvage value. The company uses straight-iine depreciation method. (4) On August 2nd, purchased $7,000,000 of home appliance inventory on account. (5) On August 5th, purchased $2,000,000 of home appliance and paid cash. (6) On August 23rd, received an order of $1,000,000 for a construction project. Inventory is to be delivered in Apri1 2023. The construction company paid for 30 percent of the order in cash on August 23 rd. (7) On August 24th, received a payment of $150,000 from a customer for appliances to be delivered within 30 days. As of the end of August, the appliances are yet to be delivored. (8) Paid $115,000 in payrol1 on August 31 st; $100,000 to warehouse personnel and $15,000 to administrative staff. (9) Paid utilities of $30,000 on August 31st; $25,000 for the warehouse and $5,000 for the administrative offices. (10) Sales for the month totaled $4,500,000, and 60 percent of sales are credit sales. (11) The cost of inventory sold for the month of August totaled $3,800,000. (12) 2 percent of the outstanding receivables as of August 30 are estimated to be uncollectible. (13) Corporate Income tax rate is 21 percent and will be paid in March of next year. (14) Declared cash dividends of $200,000 on August 30 to be paid in January 2023. 1. Analyze and record the transactions for the first month of operations. Indicate the effect of each transaction on the balance sheet equation. Use template on page 4 and see the example below: 2. Post the transactions to the ledger/T-accounts (see T-accounts template on pages 67 ) 3. Prepare an unadjusted trial balance (use template on page 5) 4. Record adjusting entries (use template on page 4) 5. Post the adjusting entries to the T-accounts 6 . Prepare an adjusted trial balance (use template on page 5) 7. Prepare the following financial statements: a. Income statement b. Statement of Retained Earnings c. Balance Sheet 8. Prepare closing entries (use template on page 4) 9. Post the closing entries to the T-accounts Journal entry template Trial balance template 6 \begin{tabular}{|c|c|} \hline est & nue \\ \hline \end{tabular} \begin{tabular}{|c|c|} \hline \\ \hline & \\ \hline & \\ \hline \end{tabular} \begin{tabular}{c} \begin{tabular}{l} Dividends \\ Payable \end{tabular} \\ \hline \end{tabular}