Computer Depot was incorporated on January 1st. The businessmaintains a retail personal computer replacement parts store, andalso provides a full range of services, including computerdiagnostic services, virus removal, hardware replacement, softwareinstallation and upgrades, and optimization services. The followingtransactions occurred during the first twelve months of operations:January 1st Common stock is issued in exchange for cash in theamount of ………….………….……………………… 350,000 February 8th The companypurchases and pays for 300 units of computer replacement parts at aprice of $25 per unit ………….. 7,500 March 1st The company pays cashfor a one-year insurance policy in the amount of……………….………………………..….. 10,752 March 31st Rent on a retail space for12 months is paid in the amount of …..……….……………………………………… 10,512April 1st Diagnostic tools and testing equipment with a useful lifeof 2 years is purchased for cash in the amount of …… 23,460 April10th PC tuning supplies purchased on account in the amount of…………..…………………………………………… 4,250 May 15th The company purchases andpays for another 300 units of computer replacement parts at a priceof $38 per unit ….. 11,400 May 30th PC repair services areperformed on account in the amount of …………………………………………………………..…………10,538 June 1st The company pays for advertisements to be run forthe next 12 months in the amount of ………………………. 1,540 June 30th Thecompany issues a 5-year bond with a face value of $100,000 and astated annual rate of 8%. Interest is due on June 30th each year.The market rate is 6% on the date of issuance ……………………………. 100,000July 25th Software installation & upgrade services areperformed on account in the amount of …...……………………………..………… 10,759July 31st 120 units of computer replacement parts are sold for $75per unit with terms 2/10, n/30. The sale is recorded using thegross method in the amount of (see note c for cost flowassumptions) ……………………………………………………………………………………. 9,000 August 2ndHardware replacement services are provided on account in the amountof ………………………………………………………………. 9,820 August 6th The company receivesfull payment from the customer for the July 31st sale……………………………………… 7,350 September 15th Virus removal services areperformed on account in the amount of ……………………..…………………………….…………..6,295 September 29th Customer payments are received for servicespreviously provided in the amount of ……………………………….. 1,520 October13th 136 units of computer replacement parts are sold for $75 perunit with terms 2/10, n/30. The sale is recorded using the grossmethod in the amount of ………………………………………………………………………………………. 10,200October 29th The company receives payment for half of the October13th sale ……………………………………………………… 5,100 November 1st Equipmentoriginally purchased on April 1st for $3,000 is sold for $1,500cash November 15th A bookkeeper is hired to help the company withdaily accounting taxes and annual tax preparation December 15th Thebookkeeper is paid $4,500 for the previous month's services 4,500Additional information: a. PC tuning supplies on hand at the end ofthe month are as follows: ……………………………………. 2,550 b. The year-endbalance reported at the end of the year for the Allowance forDoubtful Accounts is estimated as 2.5% of outstanding receivablesat the end of the year c. The Company uses a perpetual inventorysystem and accounts for costs using the Last-In-First-Out cost flowassumption. On December 31st, a count of ending inventory revealsthat there are 344 units of computer replacement parts on hand. d.All revenue is recorded in the "Sales Revenue" account and reportednet of cash discounts on the income statement. e. The effectiveinterest method is used to amortize bond premiums and discounts f.Adjustments are made at the end of the year for prepaid insurance,rent, advertising, depreciation, and interest expense. g. Thebookkeeper is paid a salary of $4,500 on the 15th of every month.h. The company declared dividends of $700 for the year i. Assumeselling expenses include advertising and supplies expense. Allother expenses, other than depreciation and interest expense, areconsidered general & administrative. REQUIRED: 1. Preparejournal entries for each transaction listed above (withdescriptions). 2. Post journal entries to the general ledgeraccounts. 3. Prepare an unadjusted trial balance. 4. Prepare allnecessary adjusting journal entries (with descriptions) and post tothe general ledger. 5. Prepare an adjusted trial balance onDecember 31st. 6. Prepare closing entries, post to the generalledger, and carryforward balances to January 1st of the next year.7. Prepare the following financial statements on December 31st(ignore income taxes): a. Income Statement (multi-step, see Example5.2 in textbook) b. Statement of Stockholders' Equity c. BalanceSheet (classified) d. Statement of Cash Flows (indirect method) 8.Rename the excel file Lastname_PortfolioProject_Option1.xls andsubmit your completed project online.