Prepare a Trial Balance, Adjusting Entries, Adjusted Trial Balance, Income Statement, Statement of Retained Earnings, Balance Sheet, Prepare and Record Closing Entries, Prepare a Post$-$Closing Trial Balance

Dinah Soars, Biff Wellington and Duane Pipe are the stockholders of Sharpe, Incorporated. The Articles of Incorporation for the corporation authorized $500,000$ shares of $$2$ par common stock, and $100,000$ shares of $$30$ par, $4\%,$ preferred stock. As of January $1,2023,$ there were $24,000$ shares of common stock issued and outstanding and $5,000$ shares of preferred stock issued and outstanding.

Selected transactions completed by Sharpe Incorporated during the fiscal year$-$ending December $31,2023,$ are as follows:

Jan $1$ Issued $12,500$ shares of $$2$ par common stock at $$22,$ receiving cash.

Jan $1$ Issued $5,800$ shares of $$30$ par, $4\%,$ preferred stock at $$70$ for cash.

Feb $1$ Purchased equipment for $$195,000,$ paying $$15,000$ cash and financing the remainder with a $180-$day, $6\%$ note payable.

Mar $15$ Purchased land for $$352,000$ by issuing $20,000$ shares of common stock.

Mar $31$ Purchased a two$-$year insurance policy for $$36,600.$

May $1$ Purchased $1,750$ shares of the company$$s own common stock at $$22$ per share.

May $31$ Issued $$1,000,000$ of $8-$year, $7\%$ bonds with interest payable semiannually. The amount of cash received was $$926,896.$

July $30$ Paid the amount due on the note payable signed on February $1.$

Aug $1$ Sold $430$ shares of treasury common stock purchased on May $1$ for $$25$ per share.

Sept $15$ Declared a $2\%$ stock dividend on common stock to be distributed on September $30$ to stockholders of record on September $20.$ The market price per share on September $15$ is $$25$ per share.

Sept $30$ Distributed the stock dividend declared September $15.$

Oct $1$ Borrowed $$40,000$ from Second Bank by issuing an $7\%$ note. The note is to be repaid in quarterly payments of principal plus interest totaling $$1,860$ per quarter.

Oct $16$ Sold $370$ shares of treasury common stock purchased on May $1$ for $$18$ per share.

Nov $30$ Paid the semiannual interest and amortized the discount on the bonds issued on May $31.$

Dec $1$ Declared a cash dividend at the stated amount to preferred stockholders and $\mathrm{.}40$ per share to common stockholders payable on December $30$ to stockholder$$s of record on December $16.$

$($Hint: don$$t forget the shares distributed from the stock dividend$)$

Dec $30$ Paid the cash dividends declared on December $1.$

Dec $31$ Paid the first quarterly installment of the note issued on October $1.$

Dec $31$ Record revenue for the year of $$1,975,000,$ received $$500,000$ in cash, the remainder is on account.

Dec $31$ Record expenses for the year, paid in cash $($one compound entry$)$:

Rent $$170,000$

Utilities $13,200$

Salaries $760,000$

Advertising $140,000$

Medical insurance $32,000$

Commissions $63,000$

Legal and accounting $18,000$

Miscellaneous $8,400$

Adjusting Entries $($At December $31,2023)$

$(1)$ The employees$$ accrued vacation pay at the end of the year was $$11,880.$

$(2)$ Record depreciation on the equipment purchased on February $1,$ using the straight$-$line method. The equipment has an estimated $9-$year useful life and an estimated residual value of $$2,760.$

$(3)$ Record insurance expired on the policy purchased March $31.$

$(4)$ Record the adjusting entry for the interest accrued and the amortization of the premium on the bonds payable since the last interest payment. $($Round the amount to the nearest dollar$)$