A young entrepreneurial jewelry maker has a new start-up, Be Jeweled, Inc. with a calendar year end of December 31, 2017. Complete the Journal Entries for all transactions listed for Be Jeweled, Inc. for the first two quarters ending June 30, 2017. Be sure to include a date for each journal entry. You do not need to provide explanations for the Journal Entries. The first Journal Entry has been done for you. Be sure to include column totals to compare your debit and credit totals as you complete the JE's. (16 points graded for accuracy and format, including appropriate Excel spreadsheet links and formulas) Transactions: 1/2/17 Issued 7,100 shares of stock to investors consisting of friends and family. Shares were sold at par value of $21 each. Paid $2,400 in cash to purchase display equipment for the jewelry showroom. Puchased a building for office, workshop, and retail space for $348,000. They paid 35% down in cash and 2/1/17 2/1/17 3 signed a 20 year mortgage note with a 4.5% interest rate for the rest. Principal and interest payments will be made annually. 2/1/17 2/1/17 Purchased inventory on account for $66,350. The company purchased a twelve month insurance policy and paid cash in advance of $2,100. Recorded jewelry sales to a local art gallery, sold on account for $8,500. Received a 5 year loan of $260,000, requiring annual payments, from the bank. The annual interest rate 4 6. 2/26/17 4/1/17 was 4.75%. Paid $42,000 of the Account Payable for the inventory to the supplier. The company received a cash payment of $5,505 from the sales on account from the local art gallery. Jewelry sales in cash for February through June 30th were $62,835. Cost of Goods Sold for the February through June 30th sales (cash and credit) were $30,340. Salaries and wages expense for February through June 30th combined was $28,065. Of this total, $24,530 was paid in cash and the rest will be paid in July. The company records depreciation monthly. The building has a useful economic life of 40 years and the 4/2/17 4/30/17 6/30/17 6/30/17 6/30/17 10 11 12 6/30/17 13 company uses the straight line depreciation method. Pay attention to the purchase date! The company records depreciation monthly. The display equipment has a useful economic life of 10 years 6/30/17 14 and the company uses the straight line depreciation method. Insurance expense for Feb through June 30th is 5/12 of the amount paid in advance. 6/30/17 6/30/17 15 16 The company accrued interest expense for the first five months they held the mortgage and the first three months they held the bank loan. Part F: Complete a Statement of Cash Flows for the period ending June 30, 2017 in proper format. The Statement of Cash Flows format should match that used in Module 1. All amounts listed in your Statement of Cash Flows must be properly linked to amounts listed in your Journal Entries, T- Accounts or Balance Sheet. (16 points-graded for accuracy and format, including Excel spreadsheet links) Cash Used for Operating Activities Check Figure is ($290). Make sure your Ending Cash Balance matches your Cash Balance on your Balance Sheet
