There are 10 applicable adiusting entries that need to be made as of the end of the month based on the information provided bove. When recording these adjusting entries consider the following facts: 1. Interest expense will be recorded as an operating expense item on the income statement. 2. Record the necessary adjusting entries related to pre-paid expense as separate journal entries. When reviewing the supply room as of the end of the month, Mason Automation noted that it had $3 Million worth of 3. supplies still on hand. As of the end of the month, 4,620 cars were completed for Highland Inc. and the performance obligation had been met on those 4,620 cars. As such, revenue was determined to be earned on those 4,620 vehicles and it was noted that each vehicle 4. costed $7,700 to manufacture. (These journal entries are considered 2 of the 10 total adjusting entries). Mason Automation uses the balance sheet approach in estimating the allowance for doubtful accounts as of the end of the 5. period. Based on industry average, Mason noted that it will use 10% of receivables as an estimation. 6. There should be two separate entries related to payroll that is recorded. Note on Balance Sheet: When preparing the balance sheet, close out net income to retained earnings. Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's first year of operations and they have hired you as their CPA to prepare the income statement and balance sheet for their company. As such, August 1st, 2022 was the first day that Mason was in business. For the month of August, record all the necessary journal entries for transactions that occurred during the month. In addition, please prepare all necessary adjusting. lournal entries as of the end of the month. From the information below, please fill out the 'journal entries' tab for all the necessary journal entries. Furthermore, please complete the 'T-Accounts' tab for the individual accounts so that the 'trial balance' tab can be updated (automatically). I prepared the first journal entry for you in the journal entries tab and T-Accounts tab. Ensure you label the entries how I have for Entry \#1. Once all entries are recored and the T-Accounts tab is updated, please prepare the financlal statements (income statement and balance sheet) for the month of January. Mason Automotive buys a patent from Apple for \$19.965 Million on August 1st, 2022. The patent has a legal life of 22 6 years and useful life of 21 years. Record the necessary entry as of August 1st, 2022. Assume the patent was purchased using cash. Mason Automotive purchases fixed assets of $176 Million that will have a useful life of 14 years and a salvage value of $55 7 million on August 1st, 2022. $70 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method. Ed Mason, the CEO, hires 3,870 employees, whom will recelve a combined salary of $7,38 Million on a monthly basis. The employees started on August 1st and will be paid for the month of August on September 6 th. Employee's withholdings are as follows: 11% for federal income taxes 5.6% for state income taxes and 7.65% for FICA. Record the necessary entry as of the date of hire, August 1st, 2022. On August 15th, Mason Automotive shipped two orders to Panther Paws Corporation. The shipping terms were FOB Destination. The first part of the delivery was received by Pather Paws on August 17 th with a sales value of $178.2 Million and the inventory cost was $95.7 Million. The second part of the delivery was received on September 3rd with a sales value \begin{tabular}{|c|l|l|} \hline 21 & & of $250 Million and an inventory cost of $175Milli. Assume that this sale was made on account. \\ \hline 22 & & \\ \hline 23 & 10 & Mason Automotive purchased \$8 Million dollars worth of supplies on account on August 27 th, 2022. \\ \hline 24 & & \\ \hline 25 & 11 & On August 30th, Mason Automotive decides to purchase 142,000 shares of Treasury stock at $22 per share. \\ \hline \end{tabular}