Smallville Company was organized on January 1, 2020. It is authorized to issue 107000 shares of $110 par value common stock. At the beginning of April, the ledger of Smallville Company carried the following balances to their respective accounts.

Cash-$57000, Merchandise Inventory- $75500, Prepaid Insurance-$5000, 10% Notes Payable-$25700, Equipment-$137000, Accumulated Depreciation: Equipment-$3600, Common Stock-$120000, Paid in capital in excess of par value: Common Stock-$23000, and Retained Earnings-$102200.

The following transactions took place in Smallville Company during April of the current year (2020).

April 1 - Issued 2500 new shares of common stock for $332000

April 3 - Purchased merchandise of $8000 on account from Prescott Co., terms FOB destination, 2/10, n/30. The appropriate party paid the freight charge of $290.

April 4 - Sold merchandise for cash, $89600. The cost of the merchandise sold was $48000.

April 5 - Purchased merchandise on account from Stafford Co., $23000, terms FOB shipping point, 2/10, n/30. The appropriate paid the freight charge of $720.

April 6 - Returned $570 of merchandise purchased on April 3 from Prescott Co.

April 13 - Paid Prescott Co. on account for purchase of April 3.

April 15 - Paid Stafford Co. on account for purchase of April 5.

April 17 - Purchased merchandise for cash $1400.

April 20 - Received refund for poor quality merchandise from supplier on cash purchase $170.

(1) Journalize the transactions for the month of April. (Assume that the company follows perpetual inventory system).

(2) Post the April journal entries to the ledger. (Remember, the ledger accounts should start with the beginning balances (if any)

(3) Prepare a trial balance on April 30, 2020.

Additional Information on Smallville Company: A review of the ledger of Smallville Company at April 30, 2020, produces the following data pertaining to the preparation of monthly adjusting entries.

Notes Payable $25700. This balance consists of a note for 6 months at an annual interest rate of 14%, dated January 1, 2020.

There are five workers in Smallville Company who are paid wages weekly. The five workers are paid $830 each for a 5-day work week (Monday to Friday). April 30 is a Tuesday and workers are paid on Fridays.

Annual depreciation is $12400 on equipment.

Physical check reveals inventory actually on hand on April 30, 2020 is $56771

(4) Journalize the adjusting entries at April 30, 2020.

(5) Prepare an adjusted trial balance.

(6) Using the balances from the adjusted trial balance, prepare a multi-step income statement and owners equity statement for the one month ended April 30. (Assume that the company falls under 20% tax bracket).