Question 1 Kelly Productions Corporation was incorporated and began operations on January 1, 2016 with $50,000 cash and $50,000 of share capital issued Part A. The following information is given during January 2016 a. Paid salaries of $15,000 during the month b. Received a price list from Joey company C. Purchased $750 of supplies on credit (record as unused supplies) d. Paid $7,200 cash for equipment e Invested $10,000 temporarily idle cash in a term deposit (record as short-term investment) Paid $1,200 for a one-year insurance policy, effective January 1 (record as an asset) g. Collected $6,000 of one-year subscriptions, beginning January 1 (record as unearned subscription revenue) h. Paid $1,500 for January, February, and March rent (record as an asset) 1. Will collect $600 for sublet of the company's warehouse for January and February (record as unearned rent revenue) 1. Directors decided to buy a machinery worth $8,000 in March 2016 k. Paid $6,000 for a used truck. Part B. At the end of the month, the following adjusting entries are needed. 1. Two days of salary amounting to $1,000 remain unpaid; the amount will be included in the first Friday salary payment in February m. A physical count indicates that $250 of supplies is still on hand. n. The equipment has an estimated useful life of three years o. An amount of $100 interest revenue is accrued on the term deposit. p. One month of the insurance policy has expired. 4. The January portion of the subscriptions revenue has been earned. T. The January portion of the rent payment has expired. s. Half of the sublet revenue has been earned t. The truck has an estimated useful life of four years. Required: (20 1. Prepare journal entries (a - k) to record the January transactions Marks) 2. Prepare all adjusting entries (1 - 1) to record the January transactions. Marks) 3. Prepare an adjusted trial balance at January 31. (24 (26 Marks)