www. PROBLEM 436A Comprehensive Problem: Two Cycles L.O. This is a two-cycle problem. The second cycle is in Problem 436B. The first cycle can be completed without referring to the second cycle. John and Larry organized a rental shop that began operations on April 1, 2007. Turner Rentals con- summated the following transactions during the first month of operation. CHEC April 1 Acquired $40,000 to establish the company, $20,000 from the issue of common stock and Gash, Net Inc $20,000 from issuing a bank note. The note had a five-year term and a 9 percent annual inter- est rate. Interest is payable in cash on March 31 of each year. 1 Paid $3,600 in advance rent for a one-year lease on office space. 1 Paid $30,000 to purchase rental tools. The tools were expected to have a useful life of five years and a salvage value of $3,000. 6 Purchased supplies for $220 cash. 9 Received $500 cash as an advance payment from Don Or to reserve tools to be used in May. 10 Recorded rentals to customers. Cash receipts were $850, and invoices for rentals on account were $1,200 15 Paid $960 cash for employee salaries. 16 Collected $450 from accounts receivable. 23 Received monthly utility bills amounting to $233. The bills will be paid during May. 25 Paid advertising expense for advertisements run during April, $240. 30 Recorded rentals to customers. Cash sales were $1,150 and invoices for rentals on account were $1,600. 30 Paid $960 cash for employee salaries. Information for April 30 Adjusting Entries 1. Counted the supplies inventory. Had $80 of supplies on hand. 2. Make adjustments for interest expense, rent expense, and depreciation expense. Required a. Record the transactions for April in general journal format. b. Open a general ledger, using T-accounts, and post the general journal entries to the ledger. c. Prepare a trial balance. d. Record and post the appropriate adjusting entries. e. Prepare a before closing trial balance. f. Prepare an income statement, statement of changes in stockholders equity balance sheet, endete sentel-cash-flows. Record and postthe closing entries 11. Prepare an-aftar.closing trial balance Retained Earnings