Safety First's December $31,$ Year $5$ post$-$closing trial balance had the following normal balances.

$\backslash$begin$\{$tabular$\}\{|$l$|$r$|\}$

$\backslash$hline Account & $\backslash$begin$\{$tabular$\}\{$l$\}$

Balance $\backslash \backslash$

$($normal$)$

$\backslash$end$\{$tabular$\}\backslash \backslash$

$\backslash$hline Cash & $19,500\backslash \backslash$

$\backslash$hline Accounts Receivable & $3,150\backslash \backslash$

$\backslash$hline Supplies & $120\backslash \backslash$

$\backslash$hline Prepaid Rent & $1,000\backslash \backslash$

$\backslash$hline Inventory & $4,320\backslash \backslash$

$\backslash$hline Aaccounts Payable & $4,900\backslash \backslash$

$\backslash$hline Unearned Revenue & $900\backslash \backslash$

$\backslash$hline Salaries Payable & $1,000\backslash \backslash$

$\backslash$hline Allowance for Uncollectible Accounts & $400\backslash \backslash$

$\backslash$hline Common Stock & $6,025\backslash \backslash$

$\backslash$hline Retained Earnings & $14,865\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$

MILESTONE $\backslash$#$1$

Post the $($above$)$ beginning balances to the T$-$accounts and create a Year $5$ Post$-$Closing Trial Balance. During Year $6,$ Safety First experienced the following transactions:

$1$

$2$ On Feb $4,$ Year $6,$ created a petty cash fund, initally setting the fund at $\backslash$$$100.$

$3$ Paid $\backslash (\backslash$$ $4,800\backslash )$ on March $1,$ Year $6$ for one year's lease in advance on the company van.

$4$ Paid $\backslash$$$12,000\mathrm{.}00$ on May $2,$ Year $6$ for one year's office rent in advance.

$5$ Purchased $\backslash (\backslash$$ $550\backslash )$ of supplies on account on May $26,$ Year $6.$

$6$ On June $3,$ Year $6,$ paid cash to purchase $105$ alarm systems at a cost of $\backslash (\backslash$$ $285\backslash )$ each.

$7$ In trying to collect on two past$-$due accounts, Restaurant Rentals and Suave Inc. $($see Acct

$8$ On June $15,$ Year $6,$ sold $110$ alarm systems for $\backslash (\backslash$$ $63,800\backslash ).$ All sales were on account to a new

$9$ On June $30,$ Year $6$ received one$-$half of the amount owed by Templaton $($net of discount$).$

$10$ Only July $1,$ Year $6,$ Safety First replenished the petty cash fund. The fund contained $\backslash (\backslash$$ $21\backslash )$ off

$11$ On August $15,$ Year $6$ paid cash to purchase $115$ alarm systems at a cost of $\backslash$$$290$ each.

$12$ Safety First began accepting credit cards for some of its monitoring service sales. The credit

$13$ Collected the amount due from the credit card company and $\backslash$$$627$ from customer Gagne.

On Dec $5,$ Year $6,$ sold $92$ alarm systems for $\backslash (\backslash$$ $53,820\backslash )$ to ZZYZ$,$ Inc. with terms Net $30.$

$14$ Paid $\backslash$$$2,450\mathrm{.}00$ on accounts payable.

$15$ Paid $\backslash (\backslash$$ $7,500\mathrm{.}00\backslash )$ for salaries during the year.

$16$ Paid $\backslash (\backslash$$ $10,500\backslash )$ of advertising expenses for the year.

$17$ Collected $\backslash (\backslash$$ $5,000\backslash )$ of accounts receivable from Templaton after the discount period.

$18$ Paid $\backslash (\backslash$$ $6,800\mathrm{.}00\backslash )$ of operating expense during the year.

$19$ Paid $\backslash$$$15,000\mathrm{.}00$ in dividends to stockholders.

MILESTONE $2$

Record all orginating transactions in the general journal. Post transactions to the T$-$Accounts and create an $-$For transactions that impact Accounts Receivable or Inventory, track the changes in the Acct Receivable or Inventory Detail worksheet. After some analysis, you determine that First Safety needs to record the following adjusting entries.

$20$ There was $\backslash (\backslash$$ $210\backslash )$ of supplies on hand at the end of the year

$21$ Prepaid rent has expired and needs to be expensed.

$22$ Owe, but have not paid for $\backslash (\backslash$$ $10,800\backslash )$ in operating expense at the end of the year.

$23$ Accrued salaries were $\backslash$$$2,100$ at December $31,$ Year $3.$

$24$ Safety First estimates that the following in estimating uncollectible accounts.

Safety First records the appropriate amount for uncollectible accounts.

$25$ Earned $\backslash (\backslash$$ $500\backslash )$ of the unearned revenue from services provided and previously paid for.

$26$ Recognized expired amount of prepaid lease on van.

$27$ After completing the year$-$end physical inventory and reviewing inventory value, determine that

Milestone $3$

Using Milestone $2$ information, record the above adjusting transactions in the general journal. Post transactions to the T$-$Accounts and create an Adjusted Trial Balance. $-$For transactions that impact Accounts Receivable or Inventory, track the changes in the Acct Receivable or Inventory Detail worksheet.

$-$Create year$-$end financial statements.