Harvey Spectre started Pearson & Co. , a company law firm on April 1, 2021. The following information regarding the company is available:

i. On 1 April, Harvey Spectre invested $80,000 cash to start the company.

ii. On April 2, Harvey Spectre hired a new secretary, who will be paid a salary of $500 per week, payable monthly.

iii. On April 3, Pearson & Co. purchased insurance policy worth $450 in advance for the coming six months, paying the amount in cash.

iv. On April 6, Pearson & Co. purchased office supplies worth $5,000, on account. On the same day the company also purchased new equipment worth $7,500, paying $5,000 cash immediately and agreed to pay the remaining within 25 days.

v. On April 10, Pearson & Co. received $4,000 from one of it’s clients for legal services that are expected to be completed in June 10.

vi. On April 12, Pearson & Co. paid the amount due for supplies that was purchased on account on April 6.

vii. On April 15, Pearson & Co. received $8,100 for legal services provided to one of it’s regular clients.

viii. On April 16, Harvey Spectre sent a bill worth $2,300 to it’s client, for services provided to the client.

ix. On April 17, supplies worth $3,000 was purchased.

x. On April 19, Advertising expenses incurred and unpaid $500.

xi. On April 20, Pearson & Co. paid rent of $6,000 for it’s office, for the month of April.

xii. On April 26, Harvey Spectre paid his secretary salary for the month of April.

xiii.On April 28, Pearson & Co. received money for the bill that was sent to it’s client on April 16.

xiv.On April 29, Harvey Spectre withdrew $1,500 from the business for personal use.

Required:

1. Journalize the above-mentioned transaction in the books of Pearson & Co. 
2. Post the journals into appropriate ledger accounts. 
3. Prepare a trial balance for Pearson & Co., for the month ended 30 April, 2021. 
4. Assume that you are the accountant of Pearson & Co., the following adjusting entries were discovered on the last day of the month :
   1. One month’s insurance expired.
   2. Out of the supplies purchased during the month, $1,500 worth of supplies were still unused.
   3. iii. From the April 10 transaction, Pearson & Co. earned $2,000.
5. 
   
   4. On April 30, Pearson & Co. received an electricity bill of $1,200 that will be paid for within the next 5 days (by May 5th).
   5. Pearson & Co. provided legal services worth $1,500 to its client that had not been recorded yet. vi. Pearson & Co. will charge a depreciation of $75 per month, or $900 per year.

vii. The employees of Pearson & Co. are paid weekly and are always paid on the last day of each week. The company has three employees and each employee is paid a salary of $600 for a 5-day work week (Sunday- Thursday). Assume that April 30 is a Wednesday and employees are paid on Thursdays of each week. All the previous week’s salary are already paid for, only April’s last week’s salary-related transaction is yet to be recorded.

4. Write the adjusting journal entries for the above-mentioned transactions. 
5. Prepare the adjusted trial balance for Pearson & Co., for the month ended 30 April 2021. 
6. Prepare the Income Statement, Owner’s Equity Statement and Balance Sheet for Pearson & Co., for the month ended 30 April 2021.
7. Write the closing journal entries for Pearson & Co.