Problem: The DS Wilson Company, which provides consulting services to major utility companies, was formed on January $2$nd of the current year. Transactions completed during the first year of operation are presented below.

January $2$: Issued $600,000$ shares of common stock for $$10,000,000,$ which is the par value of the stock.

January $10$: Acquired equipment in exchange for $$2,000,000$ cash and a $$6,000,000$ note payable. The note is due in $10$ years.

February $10$: Paid $$24,000$ for a business insurance policy covering the two$-$year period beginning on February $1$st$.$

February $22$: Purchased $$900,000$ of supplies on account.

March $1$: Paid wages of $$185,600.$

March $23$: Billed $$2,730,000$ for services rendered on account.

April $1$: Paid $$100,000$ of the amount due on the supplies purchased on February $22$nd$.$

April $17$: Collected $$210,000$ of the outstanding accounts receivable.

May $1$: Paid wages of $$200,400.$

May $8$: Received bill and paid $$98,200$ for utilities.

May $24$: Paid $$42,500$ for sales commissions.

June $1$: Made the first payment on the note issued on January $10$th$.$ The payment consisted of $$60,000$ of interest and $$200,000$ to be applied against the principal of the note.

June $16$: Billed customers for $$560,000$ of services rendered.

June $30$: Collected $$300,000$ on accounts receivable.

July $10$: Purchased $$155,000$ of supplies on account.

Aug $25$: Paid $$160,000$ for administrative expenses.

Sept $23$: Paid $$30,000$ for warehouse repairs.

October $1$: Paid wages of $$90,000.$

Nov $20$: Purchased supplies for $$60,000$ with cash.

Dec $15$: Collected $$125,600$ in advance for services to be provided in December and January of the following year.

Dec $30$: Declared and paid a $$50,000$ dividend to shareholders.

Questions:

a$.$ Journalize the transactions for the year. You should omit explanations.

b$.$ Post the transactions to t$-$accounts.

c$.$ Prepare an unadjusted trial balance as of December $31$

d$.$ Journalize and post adjusting entries to t$-$accounts based on the following additional information.

a$.$ Eleven months of the insurance policy expired by the end of the year.

b$.$ Depreciation for the equipment is $$400,000.$

c$.$ The company provided a portion of the services related to the advance collection of December $15$th$.$ The company recognized $$70,000$ as service revenue earned.

d$.$ There are $$500,000$ of supplies on hand at the end of the year.

e$.$ An additional $$170,000$ of interest has accrued on the note by the end of the year.

f$.$ Wilson accrued wages in the amount of $$200,000.$

e$.$ Prepare an adjusted trial balance as of December $31.$

f$.$ Prepare a single$-$step income statement and statement of stockholders$$ equity for the current year and a classified balance sheet as of the end of the year.

g$.$ Prepare a post$-$closing trial balance as of December $31.$