Accounting Cycle Project SP$24$Roadrunner Bookstore uses the perpetual inventory system. Roadrunner Bookstore is owned by Tina Smith. The company had the following transactions for the month of August.

Aug $2$ Aug $3$ Aug $6$

Aug $6$ Aug $7$ Aug $8$ Aug $10$

Aug $11$ Aug $15$ Aug $17$

Aug $18$ Aug $20$

Aug $22$ Aug $23$

Aug $27$ Aug $29$

Aug $30$

Tina Smith invested a building worth $$300,000$ and $$65,000$ cash into a new business, Roadrunner Bookstore.

Purchased $$80,000$ of merchandise inventory on credit, Invoice #$234$ dated Aug $2$ from Cengage, terms $1/20,$ n$/60.$

Roadrunner Bookstore rented an unused portion of their building to Smith Supplies for $$2,000$ per month. Smith Supplies paid Roadrunner Bookstore three months of rent in advance.

Issued check #$501$ payable to Cash to establish a petty cash fund in the amount of $$450.$

Sold merchandise to Rowan University for $$50,000$ on credit, terms $2/15,$ n$/45.$ Invoice no$.101.$ Cost of the merchandise sold is $$35,000.$ Purchased office supplies totaling $$4,000$ on credit from Office Depot, terms $2/10,$ n$/30$ Invoice #$632$ dated Aug $7.$

The cash register's record shows $$12,000$ in sales at the end of the shift, but the count of cash in the register is $$12,025.$ Cost of the merchandise sold is $$7,000.$ Prepare the journal entry to record the day's cash sales.

Sold merchandise to Rutgers University for $$14,000$ with terms $2/15,$ n$/45.$ Invoice no$.102.$ Cost of the merchandise sold is $$9,000.$

Sold merchandise to Rowan University for $$25,000,$ terms $2/15,$ n$/45.$ Invoice No$.103.$ Cost of the merchandise sold is $$19,000.$

Issued check #$502$ made payable to you, the company accountant, for your salary totaling $$3,000.$

Issued check #$503$ to Cengage for the purchase recorded on Aug $3$rd $.$ Roadrunner Bookstore signed a short$-$term note payable in the amount of $$60,000$ with an interest rate of $7\%$ due in $90$ days.

Rowan University paid the balance due from the sale on August $7$th$.$ The cash balance in the petty cash drawer is $$75.$ Receipts in the drawer show $$80$ for Transportation In$,$ $$150$ for delivery expenses, $$75$ for postage expense, and $$25$ for office supplies expenses. Replenish petty cash using check #$504$ made payable to Cash.

Received $$10,000$ check from Rutgers University for the Aug $11$th sale. Issued check #$505$ made payable to Tina Smith for $$10,000$ for personal use.

Issued check #$506$ for $$5,000$ payable to Farm State for August insurance coverage.

Roadrunner Bookstore uses the following Special Journals:

Sales, Purchases, Cash Receipts, and Cash Disbursements.

$1.)$ Record the above transactions to the appropriate Journal and post as necessary to the Subsidiary Ledgers and General Ledger Accounts. Make sure to foot and cross foot totals at month$-$end.

$2.)$ Complete the unadjusted trial balance columns on the worksheet for Roadrunner Bookstore as of the end of August $2023,$ and the Schedules of Accounts Receivable and Accounts Payable.

Roadrunner Bookstore must consider the following for adjusting entry purposes:

a$)$ August rent from Smith Supplies has been earned.

b$)$ Depreciation on the Building for the month totaled $$556.$

c$)$ A phone bill was received totaling $$350$ that will be paid in September.

d$)$ Salaries have accrued in the amount of $$3,000$ and have not been paid.

e$)$ Interest on the short$-$term note through the end of August has accrued but

has not been paid. $($Round to a whole number$)$

f$)$ A count of inventory showed remaining inventory had a cost of $$9,000.$

g$)$ Interest of $$300$ was earned on the company$$s checking account.

h$)$ Bad debt is estimated to be $\mathrm{.}55\%$ of total net credit sales. $($Round to a whole

number$)$

Prepare adjusting entries and post to the General Ledger Accounts. Post adjusting entries to the adjustments column on the worksheet and prepare the adjusted trial balance columns. Complete the remaining columns on the worksheet.

Prepare Financial Statements $($Single or Multi$-$Step Income Statement and Classified Balance Sheet$)$ for Roadrunner Bookstore considering the following:

$$ Depreciation Expense, Delivery Expense, Bad Debts Expenses, and Cash Overages$/$Shortages are selling expenses

$$ Insurance, Postage, and Telephone Expenses are general and admin expenses

Prepare Closing Entries for Roadrunner Bookstore.

Prepare Post Closing Trial Balance for Roadrunner Bookstore.