QUESTION 1: PART A): Trendy Magazines Inc. (TMI) is a corporation that publishes various magazines and newspapers. TMI was incorporated on February 1, 2016. During the month of February, the following transaction occurred: 1. TMI sold annual subscriptions (12 months) totalling $12,000,000. All of the subscriptions were paid in full by the customers. 2. TMI received $24,000,000 from its bank in exchange for a note payable. The interest of 10% p.a. on the note is payable once per year (on January 31st each time). 3. TMI bought an industrial printer for $24,000,000 at the beginning of the month. This amount was paid using the company's debit card. The printer has a useful life of 10 years, and the depreciation is calculated using a "straight-line method (i.e., same amount of depreciation every months for 10 years). 4. TMI purchased and fully paid a one-year insurance policy for $3,600. Record the impacts on the financial statements for the above transactions (using the notion from class). Please round your numbers to the nearest dollar Transaction Impacts on Financial Statements 1 2 3 4 PART B): For each of the above transactions, prepare the adjusting entries using (1) for the month ended February 29, 2016. The entity adjusts its accounts each month. Transaction Impacts of the adjusting entries on Financial Statements 1