Bee-Kind Hives provides residential and commercial hive services. Its balance sheet at the end of August 2020 is shown below, along with its chart of accounts. (123 marks) 5 $ Assets Cash Accounts Receivable Prepaid Insurance Equipment 5,580 4,000 1,800 52,000 Bee-Kind Hrves Balance Sheet As at August 31, 2020 Liabilities Accounts Payable Unearned Revenue Bank Loan Total Liabilities Owner's Equity Fred, Capital Total Liabilities and Owner's Equity 12,800 6,200 20,000 39,000 Total Assets S 63,380 24,380 63,380 $ Account Description Account # Account Description Account # REVENUE Sales 400 ASSETS Cash Accounts Receivable Prepaid Insurance Equipment Accum. Depreciation - Equip 101 105 110 120 125 LABILITIES Accounts Payable Interest Payable Salary Payable Unearned Revenue Bank Loan EXPENSES Advertising Expense Depreciation Expense Insurance Expense Interest Expense Salaries Expense Telephone Expense 500 510 515 520 545 550 200 205 210 215 220 OWNER'S EQUITY Fred. Capital Fred. Withdrawals Income Summary 300 310 315 For the month of September 2020, Bee-Kind Hives had the following transactions: Sept 1 Sept 2 Sept5 Sept7 Septa Sept 10 Sept 20 Sept 22 Sept 24 Sept 28 Sept 30 The owner invested $4,000 cash into the business Received an advertising bill for $500, which will be paid next month Purchased equipment with $6,200 cash Received $1,530 cash for work that will be provided in October Paid the $150 telephone bill with cash Provided $5,680 worth of honey to customers who will pay later Received $2,000 in payment from customers paying their accounts Paid $1,500 toward accounts payable Paid $1,100 toward principal of the bank loan Paid salary of $2,000 to an employee The owner withdrew $1,500 cash for personal use At the end of September, the following adjustments had to be journalized to property report the balances of the company's accounts. Sept 30 One month of prepaid insurance worth $100 has been used Sept 30 Monthly depreciation on the equipment was $400 Sept 30 Unearned revenue worth $420 has now been earned Sept 30 Interest of S75 has accrued on the bank loan Sept 30 Accrued salary expense of ssoo for an employee Note: of the remaining balance of the bank loan, 55,000 will be paid within the next year. Required a Enter the opening balances from the August 2020 balance sheet into general ledger accounts (8 marks) b) Prepare the journal entries for the month of September and post them to the appropriate general ledger accounts. (22 marics) Create an unadjusted trial balance in a Trial Balance Worksheet and then complete the month and adjustments and the adjusted trial balance columns of the worksheet. (as marks) d) Post the month end adjustments to the appropriate general ledger accounts, 15 marks e) Prepare the income statement. 19 marks) 41 Prepare the statement of owner's equity. (6 marks) Prepare the classified balance sheet. (18 marks) h) Prepare the journal entries to close the books for the month of September 2020 (use the income summary account] and post the journal entries to the appropriate general ledger accounts (3 marks Create the post-closing trial balance. (13 marks Calculate Working Capital and the Current Ratio for September and explain what this means for Bee-Kind Hives. (4 marks 8 3)
