Background In March 2001, a group of individuals formed the Bright Landscapes Corporation. At the time of incorporation, Bright was given authorization to sell 100,000 shares of common stock with a $4 par value. As of June 30, 2022, 15,000 shares were issued and outstanding. The goal of Bright Landscapes is to provide quality trees and shrubs, as well as law and garden tools, to its customers at low prices. To keep these low prices, Bright sells the landscapes materials but does not provide planting services. Although Bright has some over-the-counter cash sales of merchandise to individuals, its largest amount of business results from credits sales to contractors and businesses. Bright has a calendar year end, however, a one month period of time will be used in this practice set with adjusting entries prepared at month end of July 31, 2022. Bright uses a perpetual inventory system, but will record the cost of items sold at the end of the month through an adjusting entry. Not all accounts will have transactions in the month of July. Bright Landscapes, Inc. Post-Closing Trial Balance 6/30/2022 Debit Credit $14,285 $58,020 $2,150 Cash Accounts Receivable Allowance for Bad Debts Inventory Prepaid Insurance Office Supplies Land Property, Plant and Equipment Accumulated Depreciation Accounts Payable Interest Payable Notes Payable Common Stock Paid in Capital in Excess of Par Retained Earnings $41,000 $6,120 $645 $140,000 $275,000 $150,000 $21,070 $1,100 $80,000 $60,000 $152,500 $68,250 Totals $535,070 $535,070 Below is the Chart of Accounts for Bright Landscapes: Page 3 Acc No. Name Acc. No Name Assets: 101 Cash Liabilities and Equity 110 Account Receivable 210 Accounts Payable 111 Allowance for Bad Debts 221 Interest Payable 245 Notes Payable 120 Inventory 301 Common Stock 130 Prepaid Insurance 131 Prepaid Rent 305 Paid in Capital in Excess of Par 135 Office Supplies 330 Retained Earnings 150 Land 160 Property, Plant and Equipment Revenues: 170 Accumulated Depreciation 401 Sales Revenue 402 Sales Returns and Allowances Expenses: 403 Sales Discounts 501 Cost of Goods Sold 410 Interest Income 502 Purchase Discounts 503 Purchase Returns and Allow. 506 Advertising Expense 507 Wages Expense 511 Depreciation Expense 513 Bad Debt Expense 514 Utilities Expense 516 Insurance Expense 517 Rent Expense 518 Office Supplies Expense 519 Repair Expense 522 Interest Expense is other pertinent information about Bright Landscapes. Accounts Receivable at June 30, 2022: Date of Sale Amount Customer Anderson's Rentals Bluegrass Property Elaine and Sons Grilled Steaks Jenkins and Sons Smith and Jones Watson Properties 9/21/2020 5/21/2022 6/23/2022 6/10/2022 4/9/2022 3/2/2022 6/28/2022 $2,850 $9,850 $14,100 $10,850 $ 7,495 $8,150 $4,725 Total $58,020 Accounts Payable at June 30, 2022: Vendor Invoice Date Amount Chesterfield Office Supplies Hi's Garden Shop Smithville Nurseries Johnson Company Carriage National Telephone 6/5/2022 6/23/2022 6/28/2022 5/28/2022 4/1/2022 5/25/2022 $825 $6,180 $4,275 $2,800 $1,150 $5,840 Total $21,070 ecord the journal entries for the following transactions for the month July, 2022: July 2 July 2 July 2 terms July 5 Sold 10,000 additional shares of common stock for $7.90 per share. Rented Office Space for twelve months at $ 500 per month and paid entire amount due. + Purchased inventory on credit Johnson Garden Shops" 18.400 2/15, n/30, invoice #1245. Paid $10,000 on the note payable, plus interest accrued at 6/30/02. Purchased office supplies on credit from Chesterfield Office Supplies, 11.380 terms 2/15, 1/30, invoice #948. Sold merchandise on credit to Higgins Construction Company $ 14,900, terms 2/15, n/30, invoice #950. July 5 July 10 July 10 Purchased advertising of $300. July 15 Sold merchandise on credit to Watson Properties $3,500, terms 2/10,n/30, invoice #845. July 24 Paid for office supplies purchased from Chesterfield Office Supplies on Ju 5. July 24 Received payment from Higgins Construction Company for sale of July 1 Received cash from sale on credit from Watson Properti terms 2/10,n/30. July 28 uly 31 Cash sales for the month of $ 3,500 information for Adjusting Entries: Page 6 Note Payable at June 30, 2022: The payee is Quality Bank, with an original principal of $200,000, but the current amount owed at June 30, 2022 is $80,000. Interest is payable each six months at a 2.75% rate and interest has been accrued at June 30 of $1,100 for six months. Interest is charged on the unpaid balance of the note. Prepaid Insurance at June 30, 2022: Type Length Amount Truck Property Liability Worker's Compensation 1/1/2022 to 1/1/2022 9/01/2021 to 9/01/2022 8/1/2021 to 8/1/2022 4/1/2022 to 4/1/2023 $1,400 $1,200 $1,210 $2,310 $6,120 Property, Plant and Equipment at June 30, 2022: All property, plant and equipment is depreciated using the straight line method (with no estimated salvage value). Record the adjusting journal entries based on the following information: Adjusting Entries: 1. Record one month interest (for July) due to the bank for the note payable. 2. If applicable, expense one month of prepaid office rental space. 8. Expense one month of prepaid insurance. -. The count of office supplies indicates $ 810 left in supplies inventory. It is has been determined that a total of 5510_of Accounts Receivable are considered be uncollectible. 46300 The physical count of inventory of merchandise shows $ merchandise inventory. still Prepare the depreciation expense entry for the month of July assuming the Property, ant, and Equipment is depreciated over_30 years