Question 2 The following transactions pertain to the Bongiorno Corporation's 20x4 fiscal year: Jan 1 The business was established by Joe Bongiorno who invested $100,000 cash in exchange for common shares. Jan 2 Signed a two-year lease for office space. The monthly rent is $3,000. The first month's rent was paid on Jan 2. In addition, a $5,000 security deposit was also paid to the landlord. This security deposit will be refundable on December 31, 20x5. Jan 15 Purchased $3,500 of supplies on account. Jan 30 Purchased office furniture costing $15,000 for cash. Jan 31 Purchased a two-year insurance policy at a cost of $3,840. The insurance policy takes effect on Feb 1. Feb 15 Paid for the supplies purchased on Jan 15. Dec 15 Received $4,500 from a customer for services to be provided in January 20x5. Dec 31 Write the adjusting entry for the insurance expense. Dec 31 It is estimated that the furniture will be used for 10 years. Assume straight-line depreciation and no residual value. Dec 31 A count of supplies shows that there are $1,100 of supplies remaining. Required - Write journal entries to record all of the above transactions The following items were taken from the December 31, 20x4 financial statements of Hoffer Inc. Salaries Expense $ 91,500 Accounts receivable $ 86,500 Share Capital 40,000 Insurance Expense 10,800 Accounts payable 57,000 Income Tax Expense 22,700 Supplies 23,200 Accumulated epreciation-Equip. 30,000 Inventory 122,800 Note payable (due July 30, 20x9) 103,600 Land 36,000 Cash 17,800 Advertising Expense 24,000 Equipment 60,000 Sales 400,200 Unearned Revenue 52,600 Cost of Goods Sold 143,000 Depreciation Expense 15,000 Miscellaneous Expense 35,700 Interest Expense 4,5001 The beginning retained earnings balance was $18,100. Dividends of $8,000 were declared and paid during the year. Required: a) Prepare a Statement of Income for the year ending December 31, 20x4. b) Calculate Retained Earnings as at December 31, 20x4