Question $1[80$ points$]$

Allarco Inc. began operations several years ago. Its post$-$closing trial balance at March $31,2023$ is shown below. Allarco Inc.$\text{'}$s closing entries are also shown below. Shares worth $$5,000$ were sold during March $2023.$ Use this information to prepare the following :

a$.$ Classified, Multiple$-$Step income statement for the year ended March $31.$

b$.$ Statement of changes in equity for the year ended March $31.$

c$.$ Classified balance sheet at March $31.$

$\backslash$table$[[$General Journal,Page GJ$1],[$Date$,$Account$/$Explanation$,$F$,$Debit,Credit$],[31/$Mar$,$Sales longrightarrow,,$16,300,],[,$Rent Earned,,$21,240,],[,$Commissions Earned,,$19,960,],[,$Income Summary,,,$57,500],[,$Close temporary credit balance accounts,,,$],[31/$Mar$,$Income Summary,,$52,068,],[,$Depreciation Expense, Office Furniture,,,$600],[,$Depreciation Expense, Store Equipment,,,$610],[,$Cost Of Goods Sold,,,$10,950],[,$Interest Expense,,,$3,910],[,$Rent expense, office space.,,,$9,220],[,$Rent expense, selling space,,,$11,240],[,$Office Supplies Expense.,,,$4,870],[,$Store Supplies Expense,,,$7,020],[,$Income Taxes Expense,,,$1,358],[,$Sales Discounts,,,$1,420],[,$Sales Returns and Allowances,,,$870],[,$Close temporary debit balance accounts,,,$],[31/$Mar$,$Income Summary,,$5,432,],[,$Retained Earnings.,,,$5,432],[,$Close income summary,,,$],[31/$Mar$,$Retained Earnings,,$1,600,],[,$Dividends,,,$1,600],[,$Close dividends,,,$]]$

$\backslash$table$[[\backslash$table$[[$Allarco Inc.$],[$Post$-$Closing Trial Balance$],[$March $31,2023]],,],[$Accounts payable,Debit,Credit$],[$Accumulated depreciation, office furniture,,$1,940],[$Accumulated depreciation, store equipment,,$1,090],[$Bonds Payable $($due March, $2032),,15,940],[$Cash$,6,370,],[$Income taxes payable,,$1,358],[$Merchandise inventory,$24,990,],[$Mortgage Payable $($due March, $2032),,7,370],[$Office furniture,$7,930,],[$Rent payable,,$4,930],[$Retained earnings,,$10,272],[$Share capital,,$10,060],[$Store equipment.,$7,870,],[$Trademark$,9,790,],[$Totals$,56,950,56,950]]$

Question points$]$

Bruce Bonner began a web$-$based computer sales and service company on August $1,2024$ called Bonner's Toys Corporation. The plan is to prepare monthly adjustments so that financial statements can be done each month. The following information is available for August, $2024($assume a perpetual inventory system$).$

Additional information available at month end, August $31$:

A count of the office supplies showed a balance on August $31$ of $$60.$

The merchandise inventory was counted and there was a balance on hand at August $31$ of $$15,600.$

The August utility bill arrived from Epcor Utility Company; the $$650$ balance owing must be paid by September $15,2024.$

Please make sure your final answer$($s$)$ are accurate to $2$ decimal places. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd$/$mmm $($ie$.$ January $15$ would be $\frac{15}{J}an).$ For each journal entry, indicate how each account affects the balance sheet $($Assets$,$ Liabilities, Equity$).$ Use $+$ for increase and $-$ for decrease. For example, if an account decreases equity, choose $\text{'}-$Equity'.

Prepare the journal entries based on the transactions that occurred from August $1$ to August $31.$ Also, record the six adjusting entries for the month ended August $31$ based on the additional information and a review of the August transactions. Journal entries:

Adjusting entries:

$\backslash$table$[[$Effect On$],[$Balance Sheet$],[],[],[],[],[],[],[],[],[]]$