Jackloe, Ing sells toy mice to high end pet stores. It was formed on Jan 1, 20x8 with a sale of s1 par value common stock and the issuance of a Bond. Following is JackJoe's trial balance after the first year of operation through December 120x8, This trial balance does not reflect the transactions that occured during the last month of the year or adjustments that are necessary, as described by the additional information. The Bond payable was sold on Jan 1 20X8 and is due in 4 years, interest of 12% is payable annually on Dec. 31 JackJoe, Inc. Trial Balance As of December 1, 20x8 Debits Credits $ 21,000 12,000 5,000 25,000 30,000 10,000 32,000 400 Cash $ Accounts receivable Supplies Inventory Equipment Accumulated depreciation Accounts payable Bond payable Premium on bond Dividend payable Interest payable Capital stock ($1 par) Additional paid in capital Dividend Sales Sales - Discounts Cost of goods sold Rent expense Salaries expense Depreciation expense Supplies expense Interest expense $ 20,000 5,000 66,000 16,400 24,000 133.400 $ 133.400 1. JackJoe's president, Elizabeth, decided the company needed more capital, so she sold 10,000 shares of stock on December 1for $28,000 2. JackJoe received payment to settle a $10,000 Account receivable on December 2. The terms of the receivable were 2/10, N 30 and the payment reflected that it was within the discount period. 3. JackJoe sold $35,000 of toy mice, on December 22. The terms of the sale were 2/10, N 30. Jackoe uses a periodic inventory system. 4. JackJoe performed a physical inventory at yearend and no inventory remained. JackJoe's accounting policy is LIFO periodic. 5. The equipment was purchased near the beginning of the year. It has a 10 year life with no salvage value 6. Record the first interest payment on the bond. 7. Supplies on hand at year end were counted, and amount to $500. 8. The board of directors declared a dividend of 50 cents per share on Dec. 31. The date of record is Jan 15, 20x9 and the payment date is Feb 1, 20x9. (a) Set up a chart of accounts (5 points) (b) Set up a General Ledger and drop in the Dec. 1 account balances (5 points) (c) Set up a General Journal (d) Prepare the necessary entries through December 31 (40 points) (e) Post journal entries to the GL (b) and determine the adjusted balances of the accounts. LO Prepare the adjusted trial balance. (5 points) (8) Prepare the multi-step income statement, statement of retained earnings and classified balance sheet with a detailed stockholders' equity section (25 points) (h) Calculate the current ratio and gross profit percentage, explain what these ratios tell you about JackJoe's business. (10 points) (0) Tell me the impact of journal entry #2, #5 and #6 on direct cash flows (inflow, outflow, no impact) and the appropriate section. (5 points) O Describe the internal control principle that supports a corporate policy to reconcile the bank account each month. (5 points)