Kearney Cottage Corporation $($KEARNEY CORP$)$ is a service company that was started January $1,2023,$ by Randy and Sandy$—$newly married $--$ to offer wealthy clients from the Toronto area complete support for the care and upkeep of their second homes located in Muskoka and even farther north. KEARNEY allows wealthy clients to enjoy their recreational $“$cottages$”$ over their weekends and holidays without expending their precious recreational time for maintenance. Kearney Cottage Corporation provides interior cleaning as well as exterior maintenance such as lawn cutting, landscaping, and gardening outside the home, and in the winter also includes snowplowing.

Over the course of the first year of operations, the following events occurred:

Jan $1$: Randy and Sandy go to the bank and set up a company bank account and transfer $$250,000$ of their personal funds to the company bank account. They then wrote a check to pay for the incorporation service.

Jan $2$: Randy and Sandy incorporate Kearney Cottage Corporation using an online incorporation service. The service charges them $$20000$ to incorporate the company with two shareholders. Each spouse received $100$ shares in the corporation.

Jan $3$: Randy and Sandy borrow $$4,500,000$ from the bank $($using their home as collateral$)$ of which $$2,000,000$ is to purchase a small building in Huntsville, Ontario to store their equipment and to set up an office. The bank charges them $5\%$ interest on the loan, which is to be repaid fully with all cumulative interest owing at the end of the $10$ years.

Jan $4$: KEARNEY purchase a commercial business insurance policy for general liability. The cost is $$1200$ per year which is paid monthly. The first payment is backdated to January $1.$ 

Jan $5$: KEARNEY purchases a Town of Huntsville business license for two calendar years at a cost of $$5,000,$ which is paid with the company bank card.

Jan $30$: Randy and Sandy buy several pieces of landscaping and cleaning equipment which include:

a$)2$ Industrial Vacuums: $$5000$ each expected to last $10$ years.

b$)2$ Industrial Riding Lawn Mowers: $$10,000$ each expected to last $5$ years.

c$)$ Two Used Trucks: $$40,000$ total expected to last $5$ years

d$)$ Two snowplows costing $$3500$ total to last $5$ years.

e$)$ One used snowplow costing $$20000$ each to last $10$ years.

February $28$: KEARNEY signs a contract with a local marketing firm. The marketing firm will receive $$5,000$ per month for the rest of the year.

March $1$: Randy and Sandy pay $$10,000$ for design of a website, which will be good for $2$ years before it needs to be redesigned.

April $1$: Randy and Sandy joined a local golf club for $$10,000$ to meet the $“$rich and wealthy$”$ as potential clients. At the first $“$meet and greet$”$ they had $10$ clients signed contracts to provide both cleaning and gardening support for their cottage$.$ Each contract requires the client to pay $$800$ a month for $12$ months in total starting May $1.$ Each client paid a $$1600$ deposit on April $1.$

April $15$: Randy and Sandy buy grass seed and fertilizer to be applied after every lawn cutting at a cost of $$2000$ that will have to be replenished on September $1.$ 

April $30$: During the month, Randy and Sandy went to a charity dinner to promote Kearney Corp services. They spent $$600$ on tickets and paid with a personal bank card.

May$-$December $31$:

KEARNEY Corporation had revenues of $$800,000.$  This amount does not include the original deposit and fees provided by the $10$ clients on April $1.$

Between May $1$st and December $31$st$,$ KEARNEY Corporation paid $$1800$ a month for gas and oil for the Trucks, Lawn Mowers and Snowblowers.

On October $31$st$,$ Randy and Sandy got the trucks and snowplow winterized for $$1500$ each and the Snowblowers serviced for $$250$ each.

Cash wage payments for the year were $$45,000.$ 

Required:

 Please prepare all the journal entries, general ledgers $($you can use T accounts$)$ as well as adjusting entries and an Adjusted Trial Balance: All in Good Form. Assume that the building is depreciated on a straight$-$line basis over $30$ years. All journal entries must be dated and include an explanation. If there are any events that do not require a journal entry, please provide an explanation as to why not.