PLEASE HELP WITH ADJUSETD ENTRIES

Mason Automotive sells 5,000,000 shares at $4 par for $22 on January 1st, 2021. 2Ed Mason, the CEO, hires 3,500 employees, whom will receive a combined salary of $5.6 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 4th. 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, January 1st, 2021. 3 Mason Automotive pre-pays for rent Expense for the next three years of $22 Million on January 1st, 2021. 4Mason Automotive purchased $175 Million dollars worth of inventory on January 3rd, 2021. $85 Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory. 5 Mason Automotive purchased $8 Million dollars worth of supplies on account on January 4th, 2021. 6Mason Automotive purchases fixed assets of $155 Million that will have a useful life of 15 years and a salvage value of $40 million on January 5th, 2021. $55 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method. 7Mason Automotive issues a bond payable on January 7th, 2021 with a face value of $115 Million at 97 The bond will have a useful life of 15 years with an interest payment of 7.5% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 8th, 2021. 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. 8 On January 8th, Mason Automotive receives $49 Million advance payment from a customer, Highland Inc., to manufacture 7,000 cars. 9Mason Automotive buys a patent from Apple for $13.75 Million on January 10th, 2021. The patent has a legal life of 27 years and useful life of 18 years. Record the necessary entry as of January 10th, 2021. Assume the patent was purchased using cash. 10On January 11th, Mason Automotive shipped an order to Panther Paws Corporation. The shipping terms were FOB shipping point. The sales value of the order was $185 Million and the inventory cost was $95 Million. Assume that this sale was made on account. 11 On January 21st, Mason Automotive decides to purchase 135,000 shares of Treasury stock at $26 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. 3.When reviewing the supply room as of the end of the month, Mason Automation noted that it had $4.6 Million worth of supplies still on hand. 4.As of the end of the month, 3,500 cars were completed for Highland Inc. and the performance obligation had been met on those 3,500 cars. As such, revenue was determined to be earned on those 3,500 vehicles and it was noted that each vehicle costed $5,000 to manufacture. (These journal entries are considered 2 of the 10 total adjusting entries). 5.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 7.5% of receivables as an estimation. 6. There should be two separate entries related to payroll that is recorded. Note on Balance Sheet: When preparing the balance sheet, close out net income to retained earnings.