Majid is a fresh graduate from Business School and he is planning to start up his own business by establishing consulting firm specialized in marketing research. To make sure that his business operating well; Majid hired an experienced accountant to handle day to day financial transactions and prepare financial statements by end of the period to help Majid in decision making regarding the future of his business.

Majid and the new accountant agreed to issue monthly financial statements so that Majid can be updated on his operating results and financial position every month in order to monitor, evaluate and act regarding any up normal situations.

During October $2023$; the first month of operation the following transactions were noticed:

$1.$ Majid invested cash $150,000$ in share capital to start up his business.

$2.$ Purchased equipment for $1,200$; a cash payment of $400$ was made on the date of purchase and issued a $3-$month note payable for the rest. Interest rate that must be paid is $12\%$ annual.

$3.$ Paid $3,600$ for annual rent. $($use prepaid rent account$)$

$4.$ Purchased office furniture for $4,000$ cash

$5.$ Received $6,000$ cash as advance payment on agreement to perform a market survey on Jeddah$$s university students. $($use unearned service revenue$)$

$6.$ Purchased a computer for $3,000$ cash.

$7.$ Paid $6,000$ the accountant monthly salary.

$8.$ Conducted a research for Panda Stores for $9,800.$ The bill sent to Panda directly.

$9.$ Signed a contract with Face Book to for online advertising about Majid$$s firm; the contract stated that each online advertising posted will cost Majid $500.$

$10.$ Panda Stores paid $2,000$ cash.

$11.$ Paid $1,000$ dividends.

Required:

$1.$ Record all previous transactions in journal entries.

$2.$ Post all transactions to ledger accounts.

$3.$ Prepare trial balance.

$4.$ Record adjusting entries for the month of October taking into consideration the following information:

a$.$ The computer is depreciated at $300$ annuals

b$.$ The furniture is depreciated at $100$ monthlies

c$.$ Interest on note payable has not been paid

d$.$ Rent is to be adjusted monthly

e$.$ By end of October Majid didn$$t started the survey yet.

f$.$ Face Book published $10$ electronic advertisements and no payments has been paid.

$5.$ Prepare adjusted trial balance.

$6.$ Prepare income statement, statement of retained earnings and statement of financial position.

$7.$ Record all closing entries.