Problems : (5 PoinE ) Make journal entries for the transactions listed below .Assuming these are all the transactions in the year 2020 , compose the income statement , balance sheet as of Dec 31 , 2020 .(Remember to make adjusting entries before composing income statement , and make closing entries before composing balance sheet.) a. May 1, 2020 ,TCM was founded .TCM issued 100,000 common shares .The par value per share is $1, and the company got $250,000 from issuing shares . b. May 1, 2020 ,The company paid $410,000 cash to purchase equipment . The equipment's useful life is 10 years .TCM uses straight line depreciation method and assumes no residual value at the end of 100: year. c. July 1, 2020 , TCM paid one year rent of $60,000 for the office building up front . The rent is for the period of July 1, 2020 to June 30, 2021 . d. July 1, 2020 , TCM Co . borrowed $10,000 from PNC Bank by signing a two yea.r note . The annual interest rate for that loan is 6%. The first interest payment is due on June 30, 2021 . e. July 30, 2020 , service revenue earned :cash collected $80,000 ;on credit $20,000 . f. July 30, 2020 , salary expenses incurred : paid cash , $28,000 ; on credit , $2,000 . g. Nov. 3, 2020, TCM received $1,000 in advance for service to be provided next year. h. Dec 22, 2020 , declared a cash dividend of $2,000 , which will be paid in January 2021 . a. 5/1/2020 Cash 250,000 Common stock 100,000 Additional paid in capital 150,000 b. 5/1/2020 Equipment-Trucks 40.000 Cash 40,000 c. 7/1/2020 Prepaid rentexpense 60.000 Cash 60,000 d. 7/1/2020 Cash 10.000 Notes payable 10,000 e. 7/30/2020 Cash 80,000 Accounts receivable 20,000 Service revenue 100,000 f. 7/30 /2020 Salary expenses 35.000 Cash 28,000 Salary payable 2.000