On January 1, 20X7, Jacqueline Fernandez formed a corporation to purchase wheat harvesting equipment and provide contract support services to farmers throughout the Midwest. Information about the first year of operation follows: Jan. 1 Investors provided $2,500,000 of cash in exchange for stock of Fernandez Corporation Jan. 1 Purchased combines and trucks in exchange for $1,000,000 cash and a $3,000,000 note payable Feb. 7 Purchased $40,000 of supplies on account that will be needed during the upcoming harvest Mar. 3 Paid wages of $65,400 Apr. 1 Billed customers for services in the amount of $230,000 Apr. 11 Paid $30,000 toward the purchase of February 7 May 1 Purchased a $24,000 insurance policy, recorded as prepaid insurance June 6 Collected $210,000 on accounts receivable June 9 Paid wages of $130,600 June 15 Paid $30,200 for fuel costs June 20 Paid $12,500 for lodging costs incurred by crew June 30 Paid $120,000 of interest and $80,000 to reduce the balance of the note payable Aug. 1 Billed customers for services provided in the amount of $812,000 Sept. 3 Collected $715,000 on accounts receivable Sept. 16 Purchased $25,000 of supplies on account Sept. 25 Paid $61,200 for fuel costs Oct. 20 Paid $8,100 for lodging costs incurred by crew Nov. 3 Paid wages of $125,900 Dec. 15 Collected $100,000 as deposits from customers who contracted for 20X8 harvesting services Dec. 31 Declared and paid a $25,000 dividend to shareholders Fernandez Corporation uses the following accounts: Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Accounts Payable Interest Payable Unearned Revenue Notes Payable Capital Stock Retained Earnings Dividends Revenues Wage Expense Fuel Expense Lodging Expense Insurance Expense Supplies Expense Interest Expense Depreciation Expense Income Summary

(b) Post the transactions to the appropriate general ledger accounts.

(d) Journalize and post adjusting entries based on the following additional information. The equipment had 25-year life, with no salvage value. Supplies on hand at year end amount to $20,000. Purchased $25,000 of supplies on account. At year end, $115,000 of additional interest is due on the note payable. Paid $8,100 for lodging costs incurred by crew. The insurance policy covered a 12-month period commencing on May 1. Collected $100,000 as deposits from customers who have advanced contracted for 20X8 harvesting services. At year end, Fernandez had provided $30,000 of unbilled services to customers. These services will be billed in early 20X8. Declared and paid a $25,000 dividend to shareholders.

(f) Prepare an income statement and statement of retained earnings for 20X7, and a classified balance sheet as of the end of the year.

(g) Journalize and post closing entries.

(h) Prepare a post-closing trial balance as of December 31.