Smallville Company was organized on January 1, 2020. It is authorized to issue 109000 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-$55000, Merchandise Inventory- $75800, Prepaid Insurance-$4800, 10% Notes Payable-$25500, Equipment-$144000, Accumulated Depreciation: Equipment-$3000, Common Stock-$128000, Paid in capital in excess of par value: Common Stock-$24000, and Retained Earnings-$99100.

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

April 1 - Issued 2400 new shares of common stock for $337000

April 3 - Purchased merchandise of $7900 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, $81500. The cost of the merchandise sold was $48000.

April 5 - Purchased merchandise on account from Stafford Co., $21000, terms FOB shipping point, 2/10, n/30. The appropriate paid the freight charge of $680.

April 6 - Returned $600 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 $1600.

April 20 - Received refund for poor quality merchandise from supplier on cash purchase $190

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

(a) Notes Payable $25500. This balance consists of a note for 6 months at an annual interest rate of 13%, dated January 1, 2020.

(b) There are five workers in Smallville Company who are paid wages weekly. The five workers are paid $880 each for a 5-day work week (Monday to Friday). April 30 is a Tuesday and workers are paid on Fridays.

(c) Annual depreciation is $12200 on equipment.

(d) Physical check reveals inventory actually on hand on April 30, 2020 is $55124.0.

(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).