On April 1, 2019, AFC Corporation was organized. The following transactions occurred during 2019:

On April 1, 2019, 10,000 shares of $1 par value common stock were issued for $20 per share.

On April 2, 2019, a one year rent for $64,000 a year was signed on a store. The corporation paid the entire $64,000 on this date.

On April 2, 2019 the company borrowed $50,000 from the bank by signing a three year, 8%

note with interest payable each April 1 (first interest payment due April 1, 2020).

The company purchased furniture and equipment for $40,000 in cash on April 2, 2019. The

furniture and equipment has an estimated life of 5 years with no residual value.

During the 2019 the company purchased $130,000 worth of merchandise for cash.

Merchandise costing $120,000 was sold for $290,000 in 2019. All sales were cash sales.

Salaries and wages of $50,000 were paid during 2019.

Other operating expenses totaled $10,000 in 2019 and were paid in cash.

Dividends of $1 per share were declared on December 15, 2019 to be paid on January 15, 2020.

List of Accounts:

Cash, Inventory, Prepaid Rent, Furniture & Equipment, Accumulated Depreciation, Interest Payable, Notes Payable, Dividends Payable, Salaries & Wages Payable, Common Stock, Additional Paid In Capital, Retained Earnings, Sales Revenue, Cost of Goods Sold, Rent Expense, Salaries & Wages Expense, Interest Expense, Depreciation Expense, Other Expenses, Dividends

1. Journalize the transactions

2. Prepare an unadjusted trial balance

3. Prepare and Post Adjusting Entries. Prepare all necessary adjusting entries at December 31, 2019. Note that salaries and wages earned by employees in December of 2019 but not yet paid at December 31, 2019 amounted to $3,000 (Remember to update ledger accounts).

4. Prepare an adjusted trial balance

5. Prepared Financial Statements for the period in good forms