The Simpson Corporation began operations on Jan 1, 2016. The account balances were taken from the post closing-trial balance of the company as of December 31, 2016.

The following transactions took place during 2017:

a. Owners invested additional 600,000 cash in the corporation in exchange for 5,000 ordinary share at $100

b. Store equipment is purchased for $200,000 cash

c. On the first day of August, $60,000 rent on building is paid in advance for a two-years.

d. $150,000 is borrowed from a local bank, a promissory note is signed

e. Merchandise inventory costing $380,000 is purchased on account. The company uses the perpetual inventory system

f. Credit sales for the month amounted to $700,000. The cost of merchandise sold is $420,000

g. $150,000 of accounts receivable were collected from customers less 2% cash discount

h. $245,000 cash was paid on account to suppliers of merchandise, the amount is net of 2% cash discount

i. Salaries of $96,000 are paid to employees

j. A bill of $20,000 is received from local utility company

k. $50,000 cash was loaned to another company, evidenced by a promissory note

l. The corporation paid its shareholders a cash dividend of $1.50 per share

The Simpson Corporation needs to prepare financial statements at the end of December 31, 2017 for presentation to its bank. The following information is also available:

* The company anticipates that of the total accounts receivable from customers, 1% will not be collected

* The note payable requires the entire $150,000 in principal plus interest at 10% to be paid on July 31, 2018. The date of the loan is August 1, 2017

* Depreciation on the equipment for the month of August is $5000

* The note receivable is dated October 1, 2017. The note requires the entire $20,000 in principal plus interest at 12% to be repaid in 180 days.

* The rent paid of $60,000 represents rent for 2017 and 2018

REQUIRED:

1. Prepare the journal entry for each transaction

2. Prepare an unadjusted trial balance as of December 31, 2017

3. Prepare any necessary adjusting entries at December 31, 2017

4. Prepare an adjusted trial balance as of December 31,2017 POST CLOSING TRIAL BALANCE

Cash	35,000.00
Accounts Receivable	82,000.00
Allowance for doubtful accounts		820.00
Notes Receivable
Merchandise Inventory Beg
Merchandise Inventory End	43,000.00
Interest Receivable
Prepaid Rent
Store Equipment	100,000.00
Accumulated depreciation Equipment		10,000.00
Accounts Payables		45,000.00
Notes Payable
Salaries Payable
Interest Payable
Share Capital		150,000.00
Share Premium		20,000.00
Retained Earnings		34,180.00
Sales
Sales Discounts
Interest Income
Cost of Sales
Salaries Expense
Rent Expense
Utilities Expense
Depreciation Equipment
Doubtful accounts Expense
Interest Expense
	260,000.00	260,000.00