The Accounting Cycle Bonart Service Corporation prepares financial statements monthly. The company started business in May with the issuance for cash of

$250,000 of common stock. Also in May, the company signed a four-year lease on a building (effective June 1), prepaying the first year’s rent of $24,000. Bonart also purchased equipment, which was delivered on May 31, for

$30,000 cash; the equipment is expected to have a fiveyear life, with no residual value. Bonart’s operations commenced on June 1, and the following transactions occurred during June:

1. On June 1, Bonart borrowed $40,000 from Louie’s Bank on a six-month note at 9 percent annual interest.

2. Supplies were purchased on account for $61,300.

3. The company billed customers $59,000 for services performed.

4. The company paid $32,000 of amounts owed to suppliers.

. The company collected $27,400 on account.

. Bonart billed customers $18,600 for services performed.

. Wages of $41,000 were paid.

. Utility bills of $910 were received.

. Repair bills of $620 related to water damage from a leaky pipe were received and paid.

10. Cash of $9,000 was received for services to be provided in July.

Oo CONAN At the end of June, Bonart owed employees wages of $2,100 and had $44,600 of supplies remaining on hand.

a. Record each of the listed transactions for June on the books of Bonart Service Corporation in general journal form.

b. Set up the appropriate ledger accounts (T-accounts) and enter any beginning (June 1) balances.

c. Post each of the journal entries to ledger accounts.

d. Record in general journal form any adjusting entries needed by Bonart at the end of June and post them to ledger accounts.

e. Prepare a trial balance for Bonart at the end of June, and make sure it balances.

f. Prepare Bonart’s June income statement and a balance sheet as of June 30.