A) post the transactions to existing general ledger accounts(Dont forget opening balances)
B) prepare unadjusted trial balance for June 30th
C)prepare adjusting journal entries
D) post adjusting entires to the ledger
E) Prepare an adjusted trial balance for June 30th
F) Prepare in good form for the following financial statements for the year ending June 30th
a)Multi-step income statement(be sure to list all expenses)
b)statement of retained earnings
c)classified balance sheet
G) Prepare closing entries
H)Post closing entries to ledger
I) prepare a post close trial balance
Booth Bet General Journal Transactions for June 2019 Account Description 1060 Cash Accounts Receivable Credit Date 6 Credit Debit $73,000 Date 6/15/19 Debit 100.000 1 Account Description 1060 | Cash 8000 Loan /1/19 73,000 100,000 6/2/19 1,596 6/16/19 2100 Accounts Payable 10601 Cash 24.464|| 1,596 24.464 1725 Equipment 10601 Cash 8100 Prepaid Insurance 10601 Cash 6/16/19 4800 6/5/19 14,750 2105 Salaries & Wages Payable 1060 Cash 14.750 6/19/19 4.500 8150 Legal Fee 2100 Accounts Payable 6/6/19 4,100 2150 Unearned Revenue 40201 Sales Revenue 5020 Cost of Goods Sold 12501 Inventory 6/6/19 2340 6/20/191 5 7701 Salaries & Wage Expensel 7.700 10601 Cann 5775 Supplies Expense 10601 Cash 850 5/7/19 1.175 5765 Maintenance Expense 1060) Cash 10.250 39.500 1060 Cash 33501 Common Stock 39.500 1060 Cash 4030 Consulting Revenue 4020 Sales Revenue 5 020Cost of Goods Sold 12501 Inventory 6/22/19 300 12/19 10.000 12.000 2150 Unearned Revenue 1200 Accounts Receivable 40201 Sales Revenue 5020 Cast of Goods Sold 12501 Inventory 6/23/191 7.500 3650 Dividends 82501 Dividend Payable 6/12/19 10,000 6/26/19 18.080 2 100 Accounts Payable 1060 Cash 6/13/19 1,300 1060 Cash 21501 Unearned Revenue 1,300 158,736 1200 Accounts Receivable 4030 Consulting Revenue 6/14/191 20.000 20,000 6/14/19/ 1 250 Inventory 2100 Accounts Payable 2100 Accounts Payable 1250 Inventory 1920 1.920 Debit Date 6/30/19 Adjusting Entries Account Description 8200 interest Expense 82501 interest Payable (100,000"6.5% 15/3601 Credit 2701 6/30/191 1591 5660 Depreciation Expense 1925) Accumulated Depreciation Equipment 1124464/ 614/360) 6/30/19 8200 Insurance Expense 81001 Prepaid Insurance Group #4 General Background Alicia Vikander and Steve Harvey are partners in and consulting business in Half Moon Bay. They incorporated the in order to provide legal protection and consulting company is BoothBet (BoothBet), BoothBet's bank, Coast cously awaiting the long overdue June 30, 2019 vear-end financial statements, but bet has been slow to complete there due to BoothBet's accountant getting swept away by the tide while swimming in Cook Islands. eve Harvey are partners in a small computer network software design alf Moon Bay. They incorporated the business several years ago to provide legal protection and to consolidate bank financing. The name of this et (BoothBet). BoothBet's bank, Coast National Bank, is The Problem The company's accounting records are maintained on the accrual basis. Due to the disappearance of BoothBet's accountant, they have hired you to complete a set of manca financial records using Excel for their year ending June 30, 2019. You arrive on September 14, 2019 to complete their books for the year end. Accounting Policies The company uses a perpetual inventory system for their products. Annual physical inventory counts are taken on the last day of the fiscal year. Differences between the count and the perpetual records are bound to occur. Therefore, these differences are recorded and adjusted to Cost of Goods Sold. Income tax expense is accrued at the end of each month. The income tax rate is 36%. The taxes are paid 24 months after the fiscal year end. BoothBet's sales terms to customers are net 30 days, the industry norm. Fixed assets (PP&E) are placed in service at the beginning of the month in which the asset was purchased. BoothBet has an accounting policy to depreciate all buildings over a 30-year life and all equipment over a 6-year life. The company uses straight-line depreciation for all property, plant and equipment. None of the assets are assigned a salvage value. The existing building was purchased on January 1, 2013. The existing equipment was purchased at various times, but none of the equipment is older than 3 years. Additional Information period starting on the day the contract was signed. The company signed and prepaid the $54,000 contract on July 1, 2017 Supplies were counted at the end of the month. It was determined that $17.860 remained. BoothBet is normally billed approximately $2,420 per month for utilities, but this month did not receive a bill, although they did use the same amount of electricity as normal. Wages of $14,750 earned in the latter half of June weren't paid until July 5. A count of product inventory disclosed that $65,950 in inventory remains at June 30. On the following pages, the following accounting data has also been provided: - Chart of Accounts - Trial Balance for the 11 months ended May 31, 2019 - Transactions for June 2019 4 of 7 Group #4 BoothBet Transactions for June 2019 1 After opening the mail, the secretary calculated a total of 573.000 in checks received on balances due to BoothBet Trends, $21,900, Nabor Industries paid $32,850 and Zenn Inc. paid $18,250. c.pa 2-Jun-19 The Accounts Payable staff made a payment on an invoice that had been received and recorded on May 12th from Office Depot This The Accounts Payable sta invoice was for $1,596. 5-Jun-19 The Payroll department distributed may checks to all staff that had wages due to them as of May 31 6-Jun-19 Boothbet delivered Corel Software to Rusmor Inc., a customer. This special order had been paid for in advance on May 23 for $4,100. Cost of this inventory was 52,340. 7-Jun-19 BoothBet's sales office was damaged in a freak storm. BoothBet pays $1,175 cash for construction and repairs to Fellows Construction. 8-Jun-19BoothBet sold 3,850 share of newly issued stock for $38,500 to an investor 12-Jun-19 BoothBet delivered a special order to Mounten, Inc. Mounten had prepaid $10,000 for the equipment in May. The total sales price of the equipment was $27,000. The inventory sold had a cost of $10,000. The balance due had terms of net 30. 13-Jun-19 BoothBet received a special order from Zedim. It was delivered on July 7. Since BoothBet had never sold to Zedim before, a 20% down payment was required with the balance to be paid in full on the date of delivery. The total sales price was $6,500 with the inventory costing $1,855. 14-Jun-19 A shipment arrived from Mondert, one of BoothBet's vendors. BoothBet's purchase was 125 Guardia Software at a cost of $160.00 each. BoothBet will pay for this shipment on June 29. 14-Jun-19 BoothBet determined that 12 of the Guardia Software received the day before were damaged. Mondert will issue BoothBet a credit for $1,920.00 and had requested BoothBet adjust their records accordingly. Additionally, BoothBet had been instructed to destroy the damaged Guardia Software instead of returning them. 15-Jun-19 BoothBet received a loan for $100,000 from the bank. This loan is due in 3 years and has an interest rate of 6.5%. The interest and principle are payable when the loan matures. 16-Jun-19 BoothBet purchased a fully loaded 2019 Prius for cash. BoothBet feels this car will really impress their customers, so they feel Justified in this expense. The car cost $24,464. Depreciate over 6 years, using the straight-line method. 16-Jun-19 BoothBet prepaid a 1-year automobile insurance policy for $1,600. Coverage commences today. 19-Jun-19 BoothBet had called their attomey regarding a customer complaint earlier in the month. Today they receive a $4.500 invoice for this legal advice. Terms are net 30 days. 20-Jun-19 The Payroll department distributed pay checks to all employees who had wages due to them as of June 15. The total wages paid were $7,700. 20-Jun-19 BoothBet held an annual barbeque for its employees that afternoon. They paid $850 for food, barbeque and party supplies from Costco. 22-Jun-19 BoothBet received an emergency call from Lindholm Financial, They had a major network intrusion and need to install Guardia. Can you help us Lindholm Financial paid in cash to BoothBet $8,500 for consulting services and 51,750 for the necessary parts. The inventory was on BoothBet's books at a cost of $300. 23-Jun-19 BoothBet's Board of Directors met and declared a dividend to all shareholders of record as of June 27. This dividend was for $0.15 per share and will be paid on July 15, 2019. 26-Jun-19 BoothBet pays the net amount due for the Guardia Software purchased on June 14 29-Jun-19 BoothBet completes and invoices their client, Garraw, 5158,736 for a large ERP Database project just completed, 7 of 7 Booth Bet General Journal Transactions for June 2019 Account Description 1060 Cash Accounts Receivable Credit Date 6 Credit Debit $73,000 Date 6/15/19 Debit 100.000 1 Account Description 1060 | Cash 8000 Loan /1/19 73,000 100,000 6/2/19 1,596 6/16/19 2100 Accounts Payable 10601 Cash 24.464|| 1,596 24.464 1725 Equipment 10601 Cash 8100 Prepaid Insurance 10601 Cash 6/16/19 4800 6/5/19 14,750 2105 Salaries & Wages Payable 1060 Cash 14.750 6/19/19 4.500 8150 Legal Fee 2100 Accounts Payable 6/6/19 4,100 2150 Unearned Revenue 40201 Sales Revenue 5020 Cost of Goods Sold 12501 Inventory 6/6/19 2340 6/20/191 5 7701 Salaries & Wage Expensel 7.700 10601 Cann 5775 Supplies Expense 10601 Cash 850 5/7/19 1.175 5765 Maintenance Expense 1060) Cash 10.250 39.500 1060 Cash 33501 Common Stock 39.500 1060 Cash 4030 Consulting Revenue 4020 Sales Revenue 5 020Cost of Goods Sold 12501 Inventory 6/22/19 300 12/19 10.000 12.000 2150 Unearned Revenue 1200 Accounts Receivable 40201 Sales Revenue 5020 Cast of Goods Sold 12501 Inventory 6/23/191 7.500 3650 Dividends 82501 Dividend Payable 6/12/19 10,000 6/26/19 18.080 2 100 Accounts Payable 1060 Cash 6/13/19 1,300 1060 Cash 21501 Unearned Revenue 1,300 158,736 1200 Accounts Receivable 4030 Consulting Revenue 6/14/191 20.000 20,000 6/14/19/ 1 250 Inventory 2100 Accounts Payable 2100 Accounts Payable 1250 Inventory 1920 1.920 Debit Date 6/30/19 Adjusting Entries Account Description 8200 interest Expense 82501 interest Payable (100,000"6.5% 15/3601 Credit 2701 6/30/191 1591 5660 Depreciation Expense 1925) Accumulated Depreciation Equipment 1124464/ 614/360) 6/30/19 8200 Insurance Expense 81001 Prepaid Insurance Group #4 General Background Alicia Vikander and Steve Harvey are partners in and consulting business in Half Moon Bay. They incorporated the in order to provide legal protection and consulting company is BoothBet (BoothBet), BoothBet's bank, Coast cously awaiting the long overdue June 30, 2019 vear-end financial statements, but bet has been slow to complete there due to BoothBet's accountant getting swept away by the tide while swimming in Cook Islands. eve Harvey are partners in a small computer network software design alf Moon Bay. They incorporated the business several years ago to provide legal protection and to consolidate bank financing. The name of this et (BoothBet). BoothBet's bank, Coast National Bank, is The Problem The company's accounting records are maintained on the accrual basis. Due to the disappearance of BoothBet's accountant, they have hired you to complete a set of manca financial records using Excel for their year ending June 30, 2019. You arrive on September 14, 2019 to complete their books for the year end. Accounting Policies The company uses a perpetual inventory system for their products. Annual physical inventory counts are taken on the last day of the fiscal year. Differences between the count and the perpetual records are bound to occur. Therefore, these differences are recorded and adjusted to Cost of Goods Sold. Income tax expense is accrued at the end of each month. The income tax rate is 36%. The taxes are paid 24 months after the fiscal year end. BoothBet's sales terms to customers are net 30 days, the industry norm. Fixed assets (PP&E) are placed in service at the beginning of the month in which the asset was purchased. BoothBet has an accounting policy to depreciate all buildings over a 30-year life and all equipment over a 6-year life. The company uses straight-line depreciation for all property, plant and equipment. None of the assets are assigned a salvage value. The existing building was purchased on January 1, 2013. The existing equipment was purchased at various times, but none of the equipment is older than 3 years. Additional Information period starting on the day the contract was signed. The company signed and prepaid the $54,000 contract on July 1, 2017 Supplies were counted at the end of the month. It was determined that $17.860 remained. BoothBet is normally billed approximately $2,420 per month for utilities, but this month did not receive a bill, although they did use the same amount of electricity as normal. Wages of $14,750 earned in the latter half of June weren't paid until July 5. A count of product inventory disclosed that $65,950 in inventory remains at June 30. On the following pages, the following accounting data has also been provided: - Chart of Accounts - Trial Balance for the 11 months ended May 31, 2019 - Transactions for June 2019 4 of 7 Group #4 BoothBet Transactions for June 2019 1 After opening the mail, the secretary calculated a total of 573.000 in checks received on balances due to BoothBet Trends, $21,900, Nabor Industries paid $32,850 and Zenn Inc. paid $18,250. c.pa 2-Jun-19 The Accounts Payable staff made a payment on an invoice that had been received and recorded on May 12th from Office Depot This The Accounts Payable sta invoice was for $1,596. 5-Jun-19 The Payroll department distributed may checks to all staff that had wages due to them as of May 31 6-Jun-19 Boothbet delivered Corel Software to Rusmor Inc., a customer. This special order had been paid for in advance on May 23 for $4,100. Cost of this inventory was 52,340. 7-Jun-19 BoothBet's sales office was damaged in a freak storm. BoothBet pays $1,175 cash for construction and repairs to Fellows Construction. 8-Jun-19BoothBet sold 3,850 share of newly issued stock for $38,500 to an investor 12-Jun-19 BoothBet delivered a special order to Mounten, Inc. Mounten had prepaid $10,000 for the equipment in May. The total sales price of the equipment was $27,000. The inventory sold had a cost of $10,000. The balance due had terms of net 30. 13-Jun-19 BoothBet received a special order from Zedim. It was delivered on July 7. Since BoothBet had never sold to Zedim before, a 20% down payment was required with the balance to be paid in full on the date of delivery. The total sales price was $6,500 with the inventory costing $1,855. 14-Jun-19 A shipment arrived from Mondert, one of BoothBet's vendors. BoothBet's purchase was 125 Guardia Software at a cost of $160.00 each. BoothBet will pay for this shipment on June 29. 14-Jun-19 BoothBet determined that 12 of the Guardia Software received the day before were damaged. Mondert will issue BoothBet a credit for $1,920.00 and had requested BoothBet adjust their records accordingly. Additionally, BoothBet had been instructed to destroy the damaged Guardia Software instead of returning them. 15-Jun-19 BoothBet received a loan for $100,000 from the bank. This loan is due in 3 years and has an interest rate of 6.5%. The interest and principle are payable when the loan matures. 16-Jun-19 BoothBet purchased a fully loaded 2019 Prius for cash. BoothBet feels this car will really impress their customers, so they feel Justified in this expense. The car cost $24,464. Depreciate over 6 years, using the straight-line method. 16-Jun-19 BoothBet prepaid a 1-year automobile insurance policy for $1,600. Coverage commences today. 19-Jun-19 BoothBet had called their attomey regarding a customer complaint earlier in the month. Today they receive a $4.500 invoice for this legal advice. Terms are net 30 days. 20-Jun-19 The Payroll department distributed pay checks to all employees who had wages due to them as of June 15. The total wages paid were $7,700. 20-Jun-19 BoothBet held an annual barbeque for its employees that afternoon. They paid $850 for food, barbeque and party supplies from Costco. 22-Jun-19 BoothBet received an emergency call from Lindholm Financial, They had a major network intrusion and need to install Guardia. Can you help us Lindholm Financial paid in cash to BoothBet $8,500 for consulting services and 51,750 for the necessary parts. The inventory was on BoothBet's books at a cost of $300. 23-Jun-19 BoothBet's Board of Directors met and declared a dividend to all shareholders of record as of June 27. This dividend was for $0.15 per share and will be paid on July 15, 2019. 26-Jun-19 BoothBet pays the net amount due for the Guardia Software purchased on June 14 29-Jun-19 BoothBet completes and invoices their client, Garraw, 5158,736 for a large ERP Database project just completed, 7 of 7
