Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's first year of operations and they have hired you as their CPA to prepare the income statement and balance sheet for their company. As such, August 1st, 2022 was the first day that Mason was in business. For the month of August, record all the necessary journal entries for transactions that occurred during the month. In addition, please prepare all necessary adjusting. journal entries as of the end of the month. From the information below, please fill out the 'journal entries' tab for all the necessary journal entries. Furthermore, please complete the 'T-Accounts' tab for the individual accounts so that the 'trial balance' tab can be updated (automatically). I prepared the first journal entry for you in the journal entries tab and T-Accounts tab. Ensure you label the entries how I have for Entry \#I. Once all entries are recored and the T-Accounts tab is updated, please prepare the financial statements (income statement and balance sheet) for the month of January. Mason Automotive buys a patent from Apple for $19.965 Million on August 1st, 2022. The patent has a legal life of 22 6 years and useful life of 21 years. Record the necessary entry as of August 1st, 2022. Assume the patent was purchased using cash. Mason Automotive purchases fixed assets of $176 Million that will have a useful life of 14 years and a salvage value of $55 7 million on August 1st, 2022. $70 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method. Ed Mason, the CEO, hires 3,870 employees, whom will receive a combined salary of $7.38 Million on a monthly basis. The 8 employees started on August 1st and will be paid for the month of August on September 6 th. Employee's withholdings are as follows: 11% for federal income taxes 5.6% for state income taxes and 7.65% for FICA. Record the necessary entry as of the date of hire, August 1st, 2022. On August 15th, Mason Automotive shipped two orders to Panther Paws Corporation. The shipping terms were FOB 9 Destination. The first part of the delivery was received by Pather Paws on August 17 th with a sales value of $178.2 Million and the inventory cost was $95.7 Million. The second part of the delivery was received on September 3rd with a sales value of $250 Million and an inventory cost of $175 Million. Assume that this sale was made on account. 10 Mason Automotive purchased \$8 Million dollars worth of supplies on account on August 27 th, 2022. 11 On August 30th, Mason Automotive decides to purchase 142,000 shares of Treasury stock at $22 per share. Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's first year of operations and they have hired you as their CPA to prepare the income statement and balance sheet for their company. As such, August 1st, 2022 was the first day that Mason was in business. For the month of August, record all the necessary journal entries for transactions that occurred during the month. In addition, please prepare all necessary adjusting. journal entries as of the end of the month. From the information below, please fill out the 'journal entries' tab for all the necessary journal entries. Furthermore, please complete the 'T-Accounts' tab for the individual accounts so that the 'trial balance' tab can be updated (automatically). I prepared the first journal entry for you in the journal entries tab and T-Accounts tab. Ensure you label the entries how I have for Entry \#I. Once all entries are recored and the T-Accounts tab is updated, please prepare the financial statements (income statement and balance sheet) for the month of January. Mason Automotive buys a patent from Apple for $19.965 Million on August 1st, 2022. The patent has a legal life of 22 6 years and useful life of 21 years. Record the necessary entry as of August 1st, 2022. Assume the patent was purchased using cash. Mason Automotive purchases fixed assets of $176 Million that will have a useful life of 14 years and a salvage value of $55 7 million on August 1st, 2022. $70 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method. Ed Mason, the CEO, hires 3,870 employees, whom will receive a combined salary of $7.38 Million on a monthly basis. The 8 employees started on August 1st and will be paid for the month of August on September 6 th. Employee's withholdings are as follows: 11% for federal income taxes 5.6% for state income taxes and 7.65% for FICA. Record the necessary entry as of the date of hire, August 1st, 2022. On August 15th, Mason Automotive shipped two orders to Panther Paws Corporation. The shipping terms were FOB 9 Destination. The first part of the delivery was received by Pather Paws on August 17 th with a sales value of $178.2 Million and the inventory cost was $95.7 Million. The second part of the delivery was received on September 3rd with a sales value of $250 Million and an inventory cost of $175 Million. Assume that this sale was made on account. 10 Mason Automotive purchased \$8 Million dollars worth of supplies on account on August 27 th, 2022. 11 On August 30th, Mason Automotive decides to purchase 142,000 shares of Treasury stock at $22 per share
