A. Record Transactions Lidia is looking to open another brick-and- mortar shop, but is not sure if she has the funding or the staff to handle another store. Prepare a tabular summary for Lidia of the following transactions for the months of June, July, and August. Be sure to include explanations for any revenues or expenses recorded. Include only one totals line at the end of August (after recording all transactions). Use the provided templates to complete your work. June 1 2 3 3 4 5 7 13 Lidia invested $10,000 cash in the business as owner's capital Paid $1,200 cash for June building rent Purchased furniture for $3,300 cash Paid $650 for supplies Obtains $20,000 cash loan from the bank, due in 6 months plus 6% interest Incurred $250 of advertising costs in the Albuquerque Journal on account Received $4,700 in cash from Mr. Ortega for prepaid consulting services Paid $250 cash for advertising costs incurred on June 5 15 17 22 25 29 30 30 30 30 Paid $2,500 for merchandise inventory Purchased computers for the office for $1,850 cash Hired two part-time employees and agreed to pay them $15 an hour for 20 hours a week starting in July Received $3,300 in cash from Ms. Black for prepaid consulting services Purchased $1,200 merchandise inventory on account ADJ: Incurred $200 worth of utilities expense to be paid in July ADJ: Consulted with Mr. Ortega and earned 50% of his prepayment from June 7 ADJ: Counted supplies and only $400 worth remains ADJ: Incurs one month of interest on bank loan due upon maturity of note July 2 3 5 6 7 9 10 11 13 15 15 21 24 24 Paid $1,200 cash for July building rent Paid $475 for supplies Incurred $250 of advertising costs in the Albuquerque Journal on account Performed services for Children's Preschool for $2,500 cash Paid $200 in utilities from June Paid for merchandise inventory purchased on June 29 Sold merchandise inventory costing $800 to the local sorority house for $1,300 cash Sold $700 worth of merchandise inventory to Bob's Auto Parts for $1,200 on account Paid $250 cash for advertising costs incurred on July 5 Paid $4,000 for merchandise inventory Paid both employees for two weeks of work each Received $4,250 in cash from Team Adventures for prepaid consulting services Performed services for Mini Brick Fun, Inc. for $1,200 cash. Sold Mini Brick Fun, Inc. merchandise inventory worth $1,200 for $1.700 cash to help organize their mini bricks Lidia made a $650 owner's withdrawal Performed the rest of the consulting services for Mr. Ortega Performed 75% of services for Ms. Black from her June 25 prepayment Paid both employees for two weeks of work each ADJ: Incurred $200 worth of utilities expense to be paid in August ADJ: Consulted with Team Adventures and earned 20% of their prepayment from July 21 ADJ: Counted supplies and only $325 worth remains ADJ: Incurs one month of interest on bank loan due upon maturity of note 25 26 28 30 31 31 31 31 1 August Mini Brick Fun, Inc. returned merchandise inventory for $600 cash back. The cost is $100 and the merchandise is put back into the inventory room to be sold to another customer 2 Paid $1,200 cash for August building rent Paid $1,500 for supplies 5 Incurred $250 of advertising costs in the Albuquerque Journal on account 10 6 Performed services for House Decor for $4,800 on account 7 Paid $200 in utilities from July 9 Purchased $5,000 of merchandise inventory on account 10 Sold merchandise inventory costing $3,700 to the House Decor for $4,200 cash Received payment from House Dcor for services provided on August 6 13 Paid $250 cash for advertising costs incurred on August 5 14 Paid both employees for two weeks of work each. Hired a third employee to start immediately at same pay rate and hours 16 Performed remaining services for Ms. Black 19 Recorded $1,300 in cash sales ($800 cost) at a special wedding expo event 21 Performed another 20% of services for Team Adventures 23 Paid for merchandise inventory purchased on August 9 24 Sold merchandise inventory costing $1,700 to The Law Offices of Marianne Martinez for $2,200 cash 27 Lidia makes an owner withdrawal of $975 29 Paid all three employees for two weeks of work each 31 ADJ: Incurred $200 worth of utilities expense to be paid in September 31 ADJ: Performed remaining services for Team Adventures 31 ADJ: Counted supplies and only $600 worth remains ADJ: Incurs one month of interest on bank loan due upon maturity of note Final Check Figures: Cash $28,600 Net Income $10,575 Total Assets $39,450 Total Liabilities $20,500 31