Problem-02: Suppose C. R. Byrd start an advertising agency called Pioneer Advertising on October-1, 2018. Transactions for the first two months of the operation are as follows: On October 1, C. R. Byrd invests $10,000 cash in an advertising company called Pioneer Advertising On October 1, Pioneer purchases office equipment costing $5,000 by signing a 3-month, 12\%, $5,000 note payable On October 2, Pioneer receives a $1,200 cash advance from R. Knox, a client, for advertising services that are expected to be completed by December 31 . On October 3, Pioneer pays office rent for two months in cash, $1800. On October 4, Pioneer pays $600 for a one-year insurance policy. On October 5, Pioneer purchases an estimated 3-month supply of advertising materials on account from Acro Supply for $2,500. On October 26, Pioneer owes employee salaries of $3,000 and pays them in cash On October 31, Pioneer receives $10,000 in cash from Copa Company for advertising services performed in October. Adjustment: i. Supplies on hand $1,000 at October 30 , ii. Adjust insurance expense iii. Depreciation on Equipment $40 per month iv. Unearned Service Revenue at the end of the month is $1000 v. Make adjustment for interest accrued vi. Salary due $1200 During November 2017 Pioneer Advertising Agency has the following transactions On November 2, Pioneer receives a \$1,200 cash advance from R. Knox, a client, for advertising services that are expected to be completed by December 31 . On November 9 Salary paid total $2,000 including $1,200 in arrears. On November 26, Pioneer provides services and billed customers total \$ 14,000 . On November 30, Pioneer receives $12,000 in cash from Copa Company for advertising services performed in October. Adjustment: i. Supplies on hand $500 at November 30 . ii. Adjust insurance expense iii. Depreciation on Equipment $40 per month iv. Unearned Service Revenue at the end of the month is $4000 v. Make adjustment for interest accrued vi. Salary due $4,000. (Assume: Pioneer prepare financial statement at the end of every month). Instructions: (a) Journalize and post the transactions. (b) Prepare a trial balance. (c) Journalize and post the adjusting entries and produce an adjusted trial balance. (d) Prepare the income statement and owner's equity statement and a classified balance sheet. (c) Journalize and post the closing entries and prepare closing entries and a post-closing trial balance. Problem-02: Suppose C. R. Byrd start an advertising agency called Pioneer Advertising on October-1, 2018. Transactions for the first two months of the operation are as follows: On October 1, C. R. Byrd invests $10,000 cash in an advertising company called Pioneer Advertising On October 1, Pioneer purchases office equipment costing $5,000 by signing a 3-month, 12\%, $5,000 note payable On October 2, Pioneer receives a $1,200 cash advance from R. Knox, a client, for advertising services that are expected to be completed by December 31 . On October 3, Pioneer pays office rent for two months in cash, $1800. On October 4, Pioneer pays $600 for a one-year insurance policy. On October 5, Pioneer purchases an estimated 3-month supply of advertising materials on account from Acro Supply for $2,500. On October 26, Pioneer owes employee salaries of $3,000 and pays them in cash On October 31, Pioneer receives $10,000 in cash from Copa Company for advertising services performed in October. Adjustment: i. Supplies on hand $1,000 at October 30 , ii. Adjust insurance expense iii. Depreciation on Equipment $40 per month iv. Unearned Service Revenue at the end of the month is $1000 v. Make adjustment for interest accrued vi. Salary due $1200 During November 2017 Pioneer Advertising Agency has the following transactions On November 2, Pioneer receives a \$1,200 cash advance from R. Knox, a client, for advertising services that are expected to be completed by December 31 . On November 9 Salary paid total $2,000 including $1,200 in arrears. On November 26, Pioneer provides services and billed customers total \$ 14,000 . On November 30, Pioneer receives $12,000 in cash from Copa Company for advertising services performed in October. Adjustment: i. Supplies on hand $500 at November 30 . ii. Adjust insurance expense iii. Depreciation on Equipment $40 per month iv. Unearned Service Revenue at the end of the month is $4000 v. Make adjustment for interest accrued vi. Salary due $4,000. (Assume: Pioneer prepare financial statement at the end of every month). Instructions: (a) Journalize and post the transactions. (b) Prepare a trial balance. (c) Journalize and post the adjusting entries and produce an adjusted trial balance. (d) Prepare the income statement and owner's equity statement and a classified balance sheet. (c) Journalize and post the closing entries and prepare closing entries and a post-closing trial balance