A. Prepare the adjusting entries (in good form that means with a note) as described below for the Sunshine Bakery Company. This is for the month of May 31, 2023. All Journal Entries are dated May 31, 2023. Identify EACH of the 8 transactions as Operating, Investing or Financiag. 1. Beginning baking supplies at May Ist were $1,545. A purchase of $1,200 of supplies was made on May 14 and another $2,450 were purchased on May 21 st. By May 31 st, a count showed only $350 in inventory. Record the baking supplies that were used in May. 2. In January, Sunny Shine prepaid six (6) months of automobile insurance for the delivery truck in the amotunt of $2,400 total. Record the auto insurance expense only for the month of May. 3. Sunny had to purchase all new equipment for her shop when she opened on lanuary 1,2023. She purchased an industrial refrigerator ($4,500), an industrial mixer ($3,200) and an industrial oven ($5,750). She estimated that the equipment could be used to produce revenue for 5 years ( 60 moeths) Record the baking equipment depreciation for the month of May only. The depreciation for January throegh April has already been recorded. Bonus: What is the book value (on the balance shect) of the equipment on May 3 Ist? 4. Sunny had to borrow money from the bank to purchase the new equipment and she took a loan from the Community Trust Bank on lamuary 1 in the amount of $16,000 Her loan interest is 12% per year. She has not made the journal entry to accrue the interest since she borrowed the money in January. Calculate and record the interest that she owes for the months of January through May. She will not pay it until December 31,2024. 5. Sunny has two employees, Steve, who helps in the shop and Susan, who delivers the cakes and cookies. Both employees make $15.50 an hour and work Monday through Friday, 8 bours a day. Sunny pays every week on Friday. May 31 st was a Wednesday. Record the wages for the last days of May that have not been paid. 6. In January, Stephanie Menous placed an order for her wodding cake. Her wedding was on May 31 st. When Stephanie ordered the cake in January, Sunny asked for a deposit of $3,000. The cake cost a total of $12,000. Stephanie is going to pay the balance owed in June 2023. Record the sale of the cake on May 31 . 7. The Pasadena City Council ordered 7 dozen cookies for their council meeting on May 26th. Sunny charges 7. The Pasadena City Council ordered 7 dozen cookies for their council moeting on revenue from the cookies that has not been paid at May 31 st. 8. Sunny doesn't expect to have a great deal of profit her first year in business, but she does think she will owe at least some federal and state income tax. Her accountant has suggested that she accrue $100 per month for these taxes. Accrue her tax expense for May only
