Valley Jet Engines, Inc. began operations in January of this year. For the year, the company had the following transactions:

Transactions

Jan. $1$ The company issued $100,000$ shares of $$10$ par value common stock to LJ Porter in exchange for $$880,000$ in cash and equipment valued at $$400,000.$

Jan. $1$ The company prepaid $$120,000$ in cash for a $24$ month insurance policy.

Feb. $1$ The company borrowed $$140,000$ on a $3-$year, $5\%$ installment note payable. The terms of the note require the company to make equal payments of $$51,409$ each December $31$ for $3$ years.

Mar. $1$ The company provided engine repair services to a customer and received $$300,000$ in cash.

Jul. $1$ The company issued $4\%5-$year bonds with par value of $$500,000.$ The bonds were issued at $97\%.$ Interest payments are due twice each year on June $30$ and December $31.$

Dec. $31$ The company paid the first interest payment on the bonds issued on July $1.$

Dec. $31$ The company paid $$51,409$ for its annual installment on the installment note from above. The company must calculate and record both the principal portion and the interest portion for this payment.

Dec. $31$ The company declared a $$100,000$ dividend that is to be paid in cash on February $10$ of the next year. The date of record is January $20.$ Note: The company records dividends in a dividend account which is closed at the end of the year with all other temporary accounts.

Adjustments needed:

Dec. $31$ The company must record a full year of depreciation on the equipment. The equipment has an estimated useful life of $5$ years and no salvage value. The company depreciates equipment on a straight$-$line basis.

Dec. $31$ The company must record an adjustment for $12$ months of insurance expense. A$)$ Prepare the general journal entries to record a set of transactions. The transactions will be revealed in Question $1$ once you start this assignment. See below for how to begin.

B$)$ Update the appropriate accounts according to your entries. You may use T$-$accounts, calculations, etc. You may attach separate sheets to show your work, if needed.

C$)$ Prepare an adjusted trial balance as of December $31.$ All adjusting entries should be included in the adjusted trial balance.

D$)$ Prepare an income statement for the $12$ months ended December $31.$

E$)$ Prepare a statement of retained earnings for the $12$ months ended December $31.$

F$)$ Prepare a balance sheet as of December $31.$

G$)$ Prepare closing entries for the period ended December $31.$