Marios Marketing Firm, a market research firm, had the following transactions in June, its first month of operations. 1) J. Witson invested $28,000 of personal funds in the firm in exchange for common stock. 2) The firm purchased the following from an office supply company: office equipment, $11,040; office supplies, $2,840. Terms called for a cash payment of $3,500, with the remainder due in 60 days. (Make a compound entry.) 3) Paid June rent, $1,275. 4) Contracted for five months advertising in a local newspaper at $325 per month and paid for the advertising in advance. 5) Signed a six-month contract with an electronics firm to provide research consulting services at a rate of $3,200 per month. Received two months fees in advance. Work on the contract started immediately. 6) Billed various customers for services rendered, $8,000. 7) Paid two weeks salaries (five-day week) to employees, $3,600. 8) Paid J. Witsons travel expenses to business conference, $1,440. 9) Paid $520 cash for postage to mail questionnaire. 10) Paid two weeks salaries to employees, $3,600. 11) Billed various customers for services rendered, $7,200. 12) Collected $7,900 from customers on account. 13) J. Witson received a $2,500 cash dividend. d) Record adjusting journal entries in general journal form and post to the ledger accounts. The following information is available on June 30: Office supplies on hand, $1,830. Accrued salaries, $875. Estimated life of office equipment, 8 years. (Assume equipment was purchased June 1.) Make any necessary adjusting entries for advertising and for service fees indicated by the June transactions. Assume original transactions occurred June 1. e) Post the adjustments from the adjusting entries to the Adjustments Column on the Trial Balance f) Create an Adjusted Trial Balance [note: you will need to combine the Unadjusted Trial Balance and the Adjustments] g) Now its time to prepare financial statements. Transfer the ending balances from the ADJUSTED TRIAL BALANCE to the respective financial statement tab. See the PPT example in the Moodle folder for this case study for examples of proper financial statement formatting. a. You must prepare your financial statements in a specific order. i. The single-step income statement 1. Remember to show the Net Income ii. The Statement of Stockholders Equity iii. The Balance Sheet Prepare a Single-Step Income Statement h) Go to the tab labeled Financial Analysis and prepare a column that defines EACH ratio and create a formula to compute the following ratios for June: a. Current Ratio b. Return on Assets c. Return on Sales d. Debt to Total Assets i) Now review your analysis and comment on Marios liquidity, profitability, and debt situation. Compare our firm against the following marketing firm industry averages to justify your argument. Offer any helpful suggestions. a. Current Ratio: 3.72 to 1 b. Return on Sales: 33% c. Debt to Total Assets: 27%