Make journal entries and adjustments for year end

Problem 2 Karen and Pat, two friends from University have always dreamed of opening up a sporting goods store and on January 2, 20x3 quit their real jobs and decided to go for it. The following transactions are the summarized transactions for the year ended December 31, 20x3. 1. Karen and Pat incorporate KP Sports Inc. by investing $50,000 each of their own money. 2. A suitable location is found at a rent of $14,000 per month. The first and last month's rent of a two year lease are due on signing of the lease on Jan 2, 203. 3. Furniture and fixtures are purchased at a cost of $25,000. These are purchased for cash. 4. A bank loan in the amount of $100,000 was obtained on Feb 1, 20x3. Interest payments are due on the 1st of the month. Annual rate is 9%. The loan amount is due on February 1 , 205. 5. Inventory of $75,000 was purchased on account. 6. An insurance policy was purchased for $3,600 cash. The policy takes effect on Jan 2, 203 and expires on June 30,204. 7. Sales for the year were as follows: Cash sales - $540,000 Sales on account - $375,000 8. A total of $320,000 of the sales made on account were collected. 9. An additional $450,000 of inventory was purchased on account. 10. Additional cash disbursements for the year were as follows