Part I. During the first month of operations, the following transactions occurred for Astromech Accounting Services Inc.: May 1 Issued common shares for $20,000 cash. 1 Paid office rent of $950 for the month. 4 Hired a receptionist at a salary of $2,000 per month. She started work the same day. 4 Purchased $750 of supplies on account from Read Supply Corp. 11 Completed an income tax assignment and billed the client $2,725 for services provided. 12 Received $3,500 in advance for services to be provided on a management consulting engagement. 15 Received $2,350 for services completed for Arnold Corp. 20 Received $1,725 from client for work completed and billed on May 11. 22 Paid one-third of balance due to Read Supply Corp. (See May 4 transaction.) 25 Received a $275 telephone bill for May, to be paid next month. (Hint: Use the Utilities Expense account to record telephone services.) 29 Paid receptionist $2,000 salary for the month. 29 Paid monthly income tax instalment, $300. 29 Declared and paid $250 dividend. Instructions a. Journalize the transactions. b. Determine the May 31 balances for each account. Part II. The following is the unadjusted trial balance for Rocky Mountain Resort Inc. at its year end, August 31, 2024. The company adjusts its accounts annually. Cash Debit $ 38,820 Credit Supplies 6,990 Prepaid insurance 12,720 Land 70,000 Buildings 290,000 Accumulated depreciation-buildings $ 87,000 Furniture 57,200 Accumulated depreciation-furniture Accounts payable Deferred revenue Mortgage payable, due 2028 Common shares Retained earnings 22,880 13,000 71,000 120,000 40,000 72,000 Dividends declared Rent income 10,000 497,000 Salaries expense 306,000 Utilities expense 75,200 Repairs and maintenance expense 28,250 Interest expense 7,700 Income tax expense 20,000 $922,880 $922,880. Additional information: 1. The one-year insurance policy was purchased on May 31 for $12,720. 2. A count of supplies on August 31 shows $1,380 of supplies on hand. 3. The buildings have an estimated useful life of 50 years and straight-line depreciation is applied. 4. The furniture has an estimated useful life of 10 years and straight-line depreciation is applied. 5. Customers must pay a $200 deposit if they want to book a cottage during the peak period. An analysis of these bookings indicates 355 deposits were received and credited to Deferred Revenue. Only 45 of these deposits have not been earned! August 31. 6. Salaries of $1,680 were unpaid at August 31. 7. The August utility bill of $3,120 has not yet been recorded or paid. 8. On August 25, a local business contracted with Rocky Mountain to rent one of the cottages for six months, starting October 1, at a rate of $3,000 per month. An advance payment equal to two months October and November) rent was received on August 31 and credited to Rent Income. 9. Interest on the mortgage payable is $700 for the month of August and due September 1. 10. Income tax payable is estimated to be $2,000. 11. During the month of May, $5,000 of common shares were issued. (Note: This has already been recorded.) Instructions a. Prepare adjusting journal entries for the year. b. Prepare an adjusted trial balance at August 31. c. Prepare (1) a statement of income and (2) a statement of financial position. d. A friend of yours is considering investing in the company and asks you to comment on the results of operations and financial position. Is the company performing well or not? Does the financial position look healthy or weak? Use specific information from the financial statements to support your answer. e. Prepare the closing journal entries. f. Prepare a post-closing trial balance at August 31.