Topic. (40%) The service company Falcon Footballs, Inc. (FFI) had the following balances as of December 31, 2019. Cash $120,000 Land $ 21,000 Notes Payable $ 78,500 $ 50,000 Accounts Receivable Unearned Revenue $ 44,800 Accounts Payable 5,400 Supplies 6,500 Utilities Payable $ 1,550 Salaries Payable $ 3,300 Prepaid Rent $ 70,000 Office Equipment- Common Stock $ 145,000 Office Equipment $ 68,000 Accum. Depn. $ 24,500 Retained Earnings $ 89.450 During 2020, FFI engaged in the following transactions: 1. Issued common stock for $35,000 cash. 2. Performed $575,000 of services during the year: $355,000 for cash and $220,000 on account. 3. Purchased $17,200 of supplies on account. 4. Collected $227,700 of accounts receivable during the year. 5. Paid $163,000 for salaries during the year. 6. On June 30, paid $14,000 on the note payable (see opening balances above). The note payable in the beginning balance has a 6% interest rate. It is a five-year note that was borrowed in 2017 and will be repaid in 2022. Interest is paid annually. Any additional amounts paid are applied to the principal balance. FFI last paid interest on December 31, 2019. 7. Paid $18,600 for utilities during the year. Incurred miscellaneous operating expenses on account, $143,000. (Note: Do not use Accounts Payable. Create a new liability account.) 9. Paid $104,400 of the miscellaneous operating expenses in item #8. 10. Paid $18,700 for supplies previously purchased on account. 11. On November 1, renewed annual rent agreement for $86,400 (cash was paid on that date). The previous year's rental contract expired on October 31 (see opening balances above). All rental agreements are annual. 12. Purchased land for $72,000. 13. Paid cash dividends of $9,800 to the owners. 14. On December 31, paid advertising costs of $20,400. The advertising campaign included TV and print ads running November I through January 31, 2021. Management believes the advertising will influence customers through March 31, 2021. Adjusting Entries 15. Adjusted $7,500 for depreciation on office equipment. 16. Recognized revenue from the unearned revenue in the opening balances above. The unearned revenue relates to an 18-month contract started September 1, 2019, $57,600 was received on that date. Services are provided evenly over the life of the contract. 17. Accrued interest on the notes payable discussed in item #6. 18. Received a $1,875 bill for December utilities. The bill will be paid in 2021. 19. Adjusted for the rent agreement discussed in #11. 20. Accrued salaries on December 31 were $6,900. 21. On December 31, a physical count of supplies indicated there was $4,700 of supplies remaining. Required: Analyze the transactions above using the financial accounting template. Record the transactions in general journal form. Post the transactions to the T-accounts provided. After posting all regular and adjusting entries for the year, prepare a trial balance. Use the trial balance to prepare closing entries and financial statements. FFI's financial statements must be prepared for the year ended December 31, 2020. You must create a Classified Balance Sheet, Multi-step Income Statement, Statement of Ownership Equity, and Statement of Cash Flows