The Pillow Co. prepares financial statements every month. The Pillow Co.'s transactions for Transaction Analysis the first month of operations were: Tms Date Description 1 Jan. 2 Issued 4,000 shares of S1 Par Value Common Stock for $68 per share for cash. 2 Jan. 3 Paid Insurance expense for the year, $24,000 3 Jan 8 Purchased Advertising for $1,400 cash. 4 Jan. 10 Purchased 4,000 pillows for inventory @S16 per unit on account. 5 Jan 11 Purchased Land for $92,000 cash. 6 Jan. 14 Purchased Building for $60,000 cash. 7 Jan. 20 Purchased Equipment for $60,000, paid $40,000 cash issued Note Payable for balance. 8 Jan. 22 Sold 2,960 pillows @ $26 on account. 9 Jan. 24 Paid Maintenance expenses, $1,100. 10 Jan. 24 Received $40,000 from customers for payment from sales on account 11 Jan. 28 Paid $32,000 of amount due from purchases of inventory on account. 12 Jan. 31 Paid $16,000 of Note Payable from (7). 13 Jan. 31 Received Utility bill, $400. 14 Jan. 31 Wages due to employees $12,000. Required: a. 1. Show the effects of the above transactions on the Accounting Equation, include an Expanded Accounting Equation 2. Prepare journal entries for the above transactions. Post the journal entries to T-accounts. 3. Prepare adjusting entries for the following: Insurance expense for January, b. Depreciation of building, assume Pillow Co. uses the straight-line method. The building is expected to have a useful life of 20 years, with no salvage value. c. Depreciation of the equipment using the straight-line method, with an expected useful life of 8 years and no salvage value. d. Accrual of utilities for January Accrual of wages for January f. Accrual of interest expense on the Note Payable, assume the interest rate is 10 percent per year. 4. Prepare the following financial statements: a. Income Statement. b. Balance Sheet Statement of Cash Flows. d. Statement of Retained Earings. e. c