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.

NEED HELP WITH ADJUSTING ENTRIES THANKS IN ADVANCE!

JE #	Activity For The Month of August
1	Mason Automotive sells 7,350,000 shares at $6 par for $20 on August 1st, 2022.
2	Mason Automotive purchased $162 Million dollars worth of inventory on August 1st, 2022. $79.2 Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory.
3	Mason Automotive pre-pays for rent Expense for the next five years of $25 Million on August 1st, 2022.
4	On August 1st, Mason Automotive receives $39.6 Million advance payment from a customer, Highland Inc., to manufacture 6,820 cars.
5	Mason Automotive issues a bond payable on August 1st, 2022 with a face value of $117 Million at 95. The bond will have a useful life of 10 years with an interest payment of 9.25% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of August 1st, 2022. Note: When considering the amortization of the discount or premium, assume the straight line method is used. Interest will be accrued on a monthly basis.
7	Mason Automotive purchases fixed assets of $176 Million that will have a useful life of 14 years and a salvage value of $55 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.
8	Ed Mason, the CEO, hires 3,870 employees, whom will receive a combined salary of $7.38 Million on a monthly basis. The employees started on August 1st and will be paid for the month of August on September 6th. 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.
9	On August 15th, Mason Automotive shipped two orders to Panther Paws Corporation. The shipping terms were FOB Destination. The first part of the delivery was received by Pather Paws on August 17th 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 $175Million. Assume that this sale was made on account.
10	Mason Automotive purchased $8 Million dollars worth of supplies on account on August 27th, 2022.
11	On August 30th, Mason Automotive decides to purchase 142,000 shares of Treasury stock at $22 per share.

Month End Adjusting Entries There are 10 applicable adjusting entries that need to be made as of the end of the month based on the information provided above. When recording these adjusting entries consider the following facts: 1. Interest expense will be recorded as an operating expense item on the income statement. 2. Record the necessary adjusting entries related to pre-paid expense as separate journal entries. When reviewing the supply room as of the end of the month, Mason Automation noted that it had \$3 3. Million worth of supplies still on hand. As of the end of the month, 4,620 cars were completed for Highland Inc. and the performance obligation had been met on those 4,620 cars. As such, revenue was determined to be earned on those 4,620 vehicles and it was noted that each vehicle costed $7,700 to manufacture. (These journal entries are 4. considered 2 of the 10 total adjusting entries). Mason Automation uses the balance sheet approach in estimating the allowance for doubtful accounts as of the end of the period. Based on industry average, Mason noted that it will use 10% of receivables as an 5. estimation. 6. There should be two separate entries related to payroll that is recorded