Peter Maxwell is the owner of the Maxwell shop, which is specialize in selling car's tires. The shop has as October 31st fiscal year end. It uses a perpetual inventory as a method of accounting uring October, the last month of the fiscal year, the company had the following transactions: Dct. I Paid $18,000 for October's rent in cash. 1 Building purchased for $100,000 with a 20-year estimated useful life and no scrap value. The building has been available for use. For all fixed assets, the Maxwell Ltd uses the straight-line depreciation method. 1 Office supplies purchased on account having cost of $9000 4 Sold 800 tyres on account to Hella Company with the price of $410 each, terms 2/9,n/30,FOB shipping point. 5 Sold equipment with an original cost of $65,000 for $20,000. The original estimated useful life of it was 5 years with no scrap value and it had been used for 18 months. 5 Paid for the office supplies purchased on account on October 1st.. 10 Purchased 200 tyres on account from Orange Line Co., FOB destination, for $56,000. 11 Paid to the supplier for the inventory purchased at the Oet 10th transaction. 16 The product purchased by Hella Company was returned for a refund of $10,000. The goods were returned to inventory at a cost of $5,000. 17 Paid salaries, \$35,000 in cash. 19 Paid Orange Line Co. For half of the merchandise purchased on October 10th. 21 Paid postage $1,000, Miscellaneous $500, Entertainment $400 in cash. 23 Hella Company paid the amount owing. 24 P. Maxwell took out $3,800 cash for personal use. 25 Collected $1,400 from past accounts receivable. 28 Paid $5,200 for advertising in cash. 30 Wrote off uncollectible account $3,700. (a) Create T-accounts for each of the above accounts and enter the October 1st balances (b) Prepare Journal entries for the October transactions (c) Post the transactions (transfer from journal to the T-accounts) (d) Prepare a Trial Balance at October 31st (e) Journalize and post the following adjusting entries: 1. Four months of the 12-month insurance policy have expired on Oct 31 st 2. The depreciation/amortization expense for the month as follows: $11,700 for building, except for the new building purchased on Oct Ist $6,400 for equipment. $2,900 for patents 3. The note payable has an annual interest rate of 6,0%. Two months of interest have accrued (added up) on October 31st. 4. On October 01, 2021, Maxwell purchased a 1-year bond for $500,000 that pays the interest at 12% interest. The company will collect the principal and interest amounts due at the end of the bond's term 5. Salaries accrued but not paid at October 313t total $40,000 6. The application of the aging method results in an estimated uncollectible accounts receivable amount of $21,100. (f) Prepare an Adjusted Trial Balance at October 31st. (g) Prepare an Income Statement, Statement of Owner's Equity, and Classified Balance Sheet (Note: account balances in the T-accounts will change after step (e)) (h) Record and post-closing entries (i) Prepare a post-closing trial balance on October 31st (j) Prepare an Adjusted Trial Balance at October 31st (k) Prepare an Income Statement, Statement of Owner's Equity, and Classified Balance Sheet (Note: account balances in the T-accounts will change after step (e)) (I) Record and post-closing entries (m) Prepare a post-closing trial balance on October 31st (a) Create T-accounts for each of the above accounts and enter the October 1st balances (b) Prepare Journal entries for the October transactions (c) Post the transactions (transfer from journal to the T-accounts) (d) Prepare a Trial Balance at October 31st (e) Journalize and post the following adjusting entries: 1. Four months of the 12-month insurance policy have expired on Oct 31 st 2. The depreciation/amortization expense for the month as follows: $11,700 for building, except for the new building purchased on Oct Ist $6,400 for equipment. $2,900 for patents 3. The note payable has an annual interest rate of 6,0%. Two months of interest have accrued (added up) on October 31st. 4. On October 01, 2021, Maxwell purchased a 1-year bond for $500,000 that pays the interest at 12% interest. The company will collect the principal and interest amounts due at the end of the bond's term 5. Salaries accrued but not paid at October 313t total $40,000 6. The application of the aging method results in an estimated uncollectible accounts receivable amount of $21,100. (f) Prepare an Adjusted Trial Balance at October 31st. (g) Prepare an Income Statement, Statement of Owner's Equity, and Classified Balance Sheet (Note: account balances in the T-accounts will change after step (e)) (h) Record and post-closing entries (i) Prepare a post-closing trial balance on October 31st (j) Prepare an Adjusted Trial Balance at October 31st (k) Prepare an Income Statement, Statement of Owner's Equity, and Classified Balance Sheet (Note: account balances in the T-accounts will change after step (e)) (I) Record and post-closing entries (m) Prepare a post-closing trial balance on October 31st