Assume Jester Entertainment Company started operations on January 1, 2017. Jester had the following trial balance at December 31, 2017 after financial statements had been prepared. Jester Entertainment Company Trial Balance December 31 2017 DR CR 114,000 2,500 Cash Accounts Receivable Office Supplies 1,000 40,000 Land Accounts Payable 5,000 150,000 2,500 Common Stock Retained Earnings 157,500 157,500 Complete the following: Prepare the journal entries for the transactions shown in problem P1 except for the following: a. Replace the January 4 entry with the following: Purchased Office Equipment for $30,000. The equipment has a six-year useful life with no salvage value. For the May 12 entry Change the length of the payment to a 10 month contract (Until March 31) For the Dec 6 entry The amount of the bill was $12,000, instead of the given amount b. Prepare any necessary year-end adjusting entries for the transactions in part a Prepare an income statement for the year ended December 31, 2018 and classified balance sheet at 2018 for Jester Entertainment. . P1. Transaction Analysis; Journal Entries; Adjusting Journal Entries. Jester Entertainment Company began operations on January 1, 2018. The company had the following transactions in its first year of business: January 4: Owners invested $120,000 (the par value of the stock) in exchange for 20,000 shares of com- mon stock. February 2: Jester took out a 10-year note payable in the amount of $80,000 to pay for operating expenses. Interest payments are due every six months, and the balance of the note will be paid off in a lump-sum in 10 years. The interest rate is 10% annually, that is, 5% every six months. February 16: Jester signed a rental lease for its operating facility and paid a year of rent up front in the amount of $60,000. The rental lease runs from March 1, 2018, through February 29, 2019. March 1: Jester purchased office supplies in the amount of S12,000 and paid in cash, March 12: Jester paid $18,000 cash for advertising expenses. April 1: Jester purchased a two-year insurance policy that runs from April 1, 2018, to March 31, 2020, in the amount of $40,000 and paid in full for the policy in cash. May 12: Jester negotiated a contract with a customer to provide entertainment services for a one-year period running from June 1, 2018, to May 31, 2019. The customer paid the contract in full on May 12 with cash in the amount of $64,000. June 16: Jester paid wages in the amount of $12,000 to employees in cash. July 20: Jester negotiated a contract with a customer to provide entertainment services for a six-month period running from September 1, 2018, to February 28, 2019. The customer paid the contract in full on July 20 with cash in the amount of $42,000. August 2: Jester paid cash in the amount of $4,000 for the first interest payment on the note payable taken out on February 2. August 18: Jester received and paid a utilities bill in the amount of $7,000 in cash. September 10: Jester paid wages in the amount of $28,000 in cash. October 1: Jester negotiated a contract with a customer to provide entertainment services for a one-year period running from October 1, 2018, to September 30, 2019, in the amount of $420,000. The customer paid the contract in full on October 1. November 14: Jester purchased office supplies in the amount of $26,000 on account with the vendor. December 6: Jester received an advertising bill for $22,000. The services were provided in 2018 and the bill will be paid in January. Note: At year-end, Jester had $18,000 of office supplies remaining on hand. The following check figures may be useful in completing the assignment (given due to the length of the assignment: 12/31/18 Trial balance dr/cr totals 801,500 4,967 Ending Retained Earnings balance