Requirements: Using the following Chart of Accounts (last page) and Business transaction information to create: Ajournal entry for each business transaction (a separate journal entry should be made for each transaction .if required) Post each journal entry to the general ledger Create an unadjusted trial balance at December 31, 2018 1. 2. 3. Business Transactions Potential Transaction Date Ted met with his banker and was preapproved for a $25,000 loan. Ted met with his attorney and filed paperwork to be recognized as a corporation in the state of Maryland. Ted deposited $25,000 of his personal savings into a newly opened business checking account and received 100% of the corporate stock of the company. The start up loan of the company was finalized and $25,000 was deposited into the business checking account. Ted paid the Lowerys $40,000 for the following: $35,000 Music Equipment and $5,000 for digitized music library. ME paid the local radio station $4,500, and in return received 90 days of radio advertising. The advertising spots will begin on 12/15 and run on a daily basis | through 3/14/2019 ME got off to a great start by performing at a local chamber of commerce holiday function. Before leaving the event Ted collected a check for $600 ME mailed an invoice to the Chamber for the event on 12/6 for the remaining balance owed of $700. Ted served as a DJ at an afternoon event at a local church. Before leaving he collected $300 Ted met with an insurance agent and paid $2,730 total for the following - 12 month liability policy effected 12/1/18 to 12/1/19 ME Paid $2,200 for the December rent. ME REceived a deposit of $2,800 from a customer for an upcoming DJ event. ME Received a $1,300 bill from the attorney for his December services. Ted hired 3 part time employees to DJ parties. ME purchased office supplies of $800 (stationery and business cards) on account One of the new part time employees played the event that ME received the $2,800 deposit (12/11). ME's total bill for the event was $8,000 Ted decided to treat himself to a vacation and wrote a check for $1,696 from the business checking account to himself. ME played at 3 separate events. The total revenue from the events was $7,000 of which $3,000 was collected at the events. 11/15/18 11/30/18 12/1/ 12/1/ 12/2 12/5 12/6 12/7 12/8 12/9 12/10 12/11 12/12 12/13 12/14 12/15 12/21 12/24 The start up loan of the company was finalized and $25,000 was deposited business checking account. Ted paid the Lowerys $40,000 for the following: $35,000 Music Equipment and $5,000 for digitized music library. ME paid the local radio station $4,500, and in return received 90 days of radio advertising. The advertising spots will begin on 12/15 and run on a daily basis through 3/14/2019 ME got off to a great start by performing at a local chamber of commerce holiday function. Before leaving the event Ted collected a check for $600 ME mailed an invoice to the Chamber for the event on 12/6 for the remaining balance owed of $700. Ted served as a DJ at an afternoon event at a local church. Before leaving he collected $300 Ted met with an insurance agent and paid $2,730 total for the following - 12 month liability policy effected 12/1/18 to 12/1/19 ME Paid $2,200 for the December rent. ME Received a deposit of $2,800 from a customer for an upcoming DJ event. ME Received a $1,300 bill from the attorney for his December services. Ted hired 3 part time employees to DJ parties. ME purchased office supplies of $800 (stationery and business cards) on account One of the new part time employees played the event that ME received the $2,800 deposit (12/11). ME's total bill for the event was $8,000o Ted decided to treat himself to a vacation and wrote a check for $1,696 from the business checking account to himself. ME played at 3 separate events. The total revenue from the events was $7,000 of which $3,000 was collected at the events. ME purchased a Chevy van for $25,000. He put 10% down and signed a loan for the remaining balance. ME Received the remaining balance from customers who had events on 12/24. ME played at 2 back to back gigs. Total charges for the events $6,500 of which $3,000 was received in cash at the events. 12/1/ 12/2 12/5 12/6 12/7 12/8 12/9 12/10 12/11 12/12 12/13 12/14 12/15 12/21 12/24 12/27 12/29 12/31 Given the following information and examining the information from December above: Create any required adjusting journal entries at December 31, 2018 Post the adjusting journal entries to the general ledger Create an adjusted trial balance at December 31, 2018 Create the income statement, statement of stockholder's equity and balance sheet at December 1. 2. 3. 4. 31, 2018 5. Create the closing journal entries at December 31, 2018 6. Post the closing journal entries to the general ledger 7. Create the post -closing trial balance at December 31, 2018 Additional Data January 1, 2019 Ted made the first payment on the $25,000 start-up loan of $477.53. $114.58 interest accrued during December and $362.95 was principal payment. Office supplies remaining in the supply closet at December 31 $200 Employees receive $30 per hour. The following employees were paid in January 2019 for the following work Employee 1 5 hours Employee 3 Employee 2 Date 12/15/18 5 hours 2 hours 3 hours 12/24/18 12/31/18 3 hours 2 hours 6 hours 4 hours 4 hours 1/1/19 1/5/19 1/7/19 3 hours 4 hours 3 hours Received December's utility bill on January 10 $325 Received December's phone bill on January 11 $400 ME will depreciate the Music Equipment over 36 months, the Music Library over 24 months and the Vehicle over 5 years. Straight-line depreciation will be used and there is no salvage value for any of the assets. Ted realized on January 10th. That he forgot to charge a customer for an event that was held on December 29th, He sent a bill to the customer for $3,500. Chart of Accounts Accounts Payable Accounts Receivable Accumulated Depreciation Advertising Expense Amortization Expense Cash Common Stock Deferred Revenue Depreciation expense Dividends Insurance Expense Interest Expense Interest Payable Interest Receivable Interest Revenue Miscellaneous Expense Music Equipment Music Library Note Payable Office Equipment Prepaid Advertising Prepaid Insurance Prepaid Rent Professional Fees Revenue Rent Expense Retained Earnings Salaries Expense Salaries Payable Supplies Supplies Expense Utilities Expense Vehicles