The John Marshall Company, Inc., which provides consulting services to major utility companies, was formed on January 2 of this year. Transactions completed during the first year of operation were as follows: January 2 - Issued 600,000 shares of stock for $10,300,000. January 10 - Acquired equipment in exchange for $2,600,000 cash and a $5,100,000 note payable. The note is due in ten years. February 1 - Paid $12,000 for a business insurance policy covering the two-year period beginning on February 1. February 22 - Purchased $900,000 of supplies on account March 1 - Paid wages of $185,600 March 23 - Billed $2,810,000 for services rendered on account April 1 - Paid $120,000 of the amount due on the supplies purchased February 22. April 17 - Collected $300,000 of the accounts receivable May 1 - Paid wages of $200,400. May 8 - Received and paid bill for $96,000 for utilities. May 24 - Paid $44,000 for sales commissions. June 1 - Made the first payment of 250,000 on the note issued January 10. The payment consisted of $50,000 interest and $200,000 applied against the principal of the note. June 16 - Billed eustomers for $520,000 of services rendered. June 30 - Collected $310,000 on accounts receivable. July 10 - Purchased $150,000 of supplies on account. August 25 - Paid $155,000 for administrative expenses. September 23 - Paid $31,000 for warehouse repairs. October 1 - Paid general wages of $91,000. November 20 - Purchased supplies for $61,000 cash. December 15 - Collected $145,000 in advance for services to be provided in December and January. December 30 - Declared and paid a $55,000 dividend to shareholders.Assets: 101102CashAccountsreceivable 103 Supplies 104 Prepaid insurance 110 Equipment 112 Accumulated depreciation Liabilities: 201 Accounts payable 202 Unearned service revenue 203 Wages payable 210 Interest payable 220 Notes payable Stockholders' Equity: 301 Common stock 310 Retained eamings 320 Dividends Revenues: 401 Service revenue Expenses: 5015025035045055065075105200ther:601Wageexpense UtilityexpenseSellingexpenseAdministrativeexpenseRepairsexpenseInsuranceexpense SuppliesexpenseDepreciationexpenseInterestexpenseIncomesummary1. Journalize the transactions for the year. 2. Post the journal entries to a T account. 3. Prepare an unadjusted trial balance as of December 31 . 4. Journalize and post adjusting entries to the T accounts based on the following additional information: a. Eleven months of the insurance policy expired by the end of the year. b. Depreciation for equipment is $410,000. c. The company provided $92,000 of services related to the advance collection of December 15 . d. There are $545,000 of supplies on hand at the end of the year. e. An additional $185,000 of interest has accrued on the note by the end of the year. f. Marshall accrued wages of $215,000 at the end of the ear. 5. Prepare an adjusted trial balance as of December 31 . 6. Prepare a single-step income statement and statement of retained eamings for the year.

1. The John Marshall Company, Inc., which provides consulting services to major utility companies,
was formed on January 2 of this year. Transactions completed during the first year of operation
were as follows: January 2 - Issued 600,000 shares of stock for $10,300,000. January 10 -
Acquired equipment in exchange for $2,600,000 cash and a $5,100,000 note payable. The note is
due in ten years. February 1 - Paid $12,000 for a business insurance policy covering the two-year
period beginning on February 1. February 22 - Purchased $900,000 of supplies on account March
1 - Paid wages of $185,600 March 23 - Billed $2,810,000 for services rendered on account April 1
- Paid $120,000 of the amount due on the supplies purchased February 22. April 17 - Collected
$300,000 of the accounts receivable May 1 - Paid wages of $200,400. May 8 - Received and paid
bill for $96,000 for utilities. May 24 - Paid $44,000 for sales commissions. June 1 - Made the first
payment of 250,000 on the note issued January 10. The payment consisted of $50,000 interest
and $200,000 applied against the principal of the note. June 16 - Billed eustomers for $520,000 of
services rendered. June 30 - Collected $310,000 on accounts receivable. July 10 - Purchased
$150,000 of supplies on account. August 25 - Paid $155,000 for administrative expenses.
September 23 - Paid $31,000 for warehouse repairs. October 1 - Paid general wages of $91,000.
November 20 - Purchased supplies for $61,000 cash. December 15 - Collected $145,000 in
advance for services to be provided in December and January. December 30 - Declared and paid
a $55,000 dividend to shareholders.Assets: 101102CashAccountsreceivable 103 Supplies 104
Prepaid insurance 110 Equipment 112 Accumulated depreciation Liabilities: 201 Accounts payable
202 Unearned service revenue 203 Wages payable 210 Interest payable 220 Notes payable
Stockholders' Equity: 301 Common stock 310 Retained eamings 320 Dividends Revenues: 401
Service revenue Expenses: 5015025035045055065075105200ther:601Wageexpense
UtilityexpenseSellingexpenseAdministrativeexpenseRepairsexpenseInsuranceexpense
SuppliesexpenseDepreciationexpenseInterestexpenseIncomesummary1. Journalize the
transactions for the year. 2. Post the journal entries to a T account. 3. Prepare an unadjusted trial
balance as of December 31 . 4. Journalize and post adjusting entries to the T accounts based on
the following additional information: a. Eleven months of the insurance policy expired by the end of
the year. b. Depreciation for equipment is $410,000. c. The company provided $92,000 of services
related to the advance collection of December 15 . d. There are $545,000 of supplies on hand at
the end of the year. e. An additional $185,000 of interest has accrued on the note by the end of
the year. f. Marshall accrued wages of $215,000 at the end of the ear. 5. Prepare an adjusted trial
balance as of December 31 . 6. Prepare a single-step income statement and statement of retained
eamings for the year ended December 31 and a classified balance sheet as of December 31 . 7.
Journalize and post the closing entries 8. Prepare a post-closing trial balance as of December 31
.John Marshal Company Income Statement for the Year ended 12/31/2020 Service revenue
Expenses Wage expense Utilities expense Selling expenses 1 Administrative expenses 2 Repairs
expense 3 Insurance expense 4 Supplies expense 5 Depreciation expense 16. Interest expense 7
Total Expenses 18 Net Incomebegin{tabular}{l|l|} hline 2 & Statement of Retained Earnings 3 & for
the Year ended 12/31/2020 4 & 5 & 6 & 7 & Net Income 8 & Dividends 9 & 10 & Ending Balance
11 & 12 & 13 & 14 & 15 & 16 & 17 & hline end{tabular}