Problem 2: Preparing journal entries: A. Prepare journal entries to record the following transactions of Robin King Corp. Assume that Robin King uses perpetual inventory system. If any transaction does have impact on the accounting equation, state "No Entry". 1. Started business by issuing 10,000 shares of common stock for $30,000. 2. Signed a franchise agreement to pay royalties of 10% of sales. 3. Leased a building for three years at $1,000 per month and paid six months' rent in advance. 4. Purchased equipment for $5,400, paying $1,000 down and signing a two-year, 10% note for the balance. 5. Robin King sold merchandise to a customer, receiving $13,000 down payment and a $15,000 note from the customer. The merchandise cost $12,000. 6. Robin King paid $4,400 for the equipment purchased in transaction (4). ABC B. Mars Hills, Inc. has prepared a year-end 2018 trial balance. Certain accounts in the trial balance do not reflect all activities occurred. Required: Prepare adjusting journal entries, as needed, for the following items. 1. The Supplies account shows a balance of $750, but a count of supplies reveals only $250 on hand. 2. Mars Hills initially records the payments of all insurance premiums as expenses. The trial balance shows a balance of $600 in Insurance expense. A review of insurance policies reveals that $200 of insurance is unexpired. 3. Mars Hills employees work Monday through Friday, and salaries of $2,400 per week are paid each Friday. Mars Hills' year-end falls on Wednesday. 4. On December 31, 2018, Mars Hills received a utility bill for December electricity usage of $190 that will be paid in early January of 2019