Bob Morales owns a company called Road Rash Motorcycle Repair Shop. You have been hired by Bob as his bookkeeper. After talking to Bob, you prepare his chart of accounts: Road Rash Motorcycle Repair Shop Chart of Accounts Account # Account Name 101 Cash 102 Accounts Receivable 103 Supplies 201 Accounts Payable 301 B. Morales, Capital 302 B. Morales, Drawing 401 Service Revenue 501 Rent Expense 502 Supplies Expense 503 Advertising Expense 504 Utilities Expense The first month of business for Road Rash Motorcycle Repair Shop is June 2020, and the transactions are: Date Transaction 6/01/2020 Bob opened the bank account and deposited $5,000 for his capital contribution. 6/02/2020 Bob rents space for his shop and paid $500 for rent. 6/03/2020 Bob purchased supplies for the shop and paid cash of $2,000. 6/10/2020 Bob took out an ad in Bikers Weekly, a local magazine, for $200 which will be paid next month. 6/22/2020 Bob repaired a motorcycle for a customer. The customer paid cash of $1,200. 6/30/2020 Bob transferred $500 to his personal bank account from the business bank account.

1. Using the chart of accounts, open the accounts in the general ledger. In addition to the accounts in the chart of accounts, make sure that you open the income summary account as the last account, number 600. 2. Record the journal entries for the June transactions using General Journal Page 1. Make sure that you include explanations. 3. Post the entries to the general ledger. When you post your entries to the general ledger, use J1 to indicate General Journal page 1 in the ref column. 4. Calculate the balances in the general ledger accounts. 5. Prepare the Unadjusted Trial Balance Columns in the worksheet by adding all the accounts from the general ledger. Make sure you properly complete the heading. After completing the Unadjusted Trial Balance, compare the balance you calculated with the check figure, Unadjusted Trial Balance each column should be: $6,400. Do not move on until your trial balance agrees.

Prepare the following adjustments in the worksheet: a. During June, Bob performed services for clients which were not billed for $3,200. b. Bob received the electric bill for the shop for $185 which he will pay next month. c. At the end of the month $250 in office supplies were remaining. 7. Prepare the Adjusted Trial Balance Columns in the worksheet. After completing the Adjusted Trial Balance, compare the balance you calculated with the check figure, Adjusted Trial Balance each column should be: $9,785. Do not move on until your trial balance agrees. 8. Prepare the adjusting journal entries on the tab General Journal Page 2 for the adjustments from Step #6. 9. Post the adjusting entries to the General Ledger and calculate the new general ledger balances. When you post your entries to the general ledger, use J2 to indicate General Journal page 2 in the ref column.

Practice Set Part C: 10. Prepare the Income Statement and Balance Sheet Columns in the worksheet. Check the Net Income you calculated in this step against the check figure, the Net Income should be $1,765. Do not move on until your Net Income agrees. 11. Prepare the Income Statement, Statement of Owner's Equity and Balance Sheet. Make sure you properly complete the heading for each statement and use proper form. Check the Capital balance you calculated in the Statement of Owners Equity (and Balance Sheet, it should be the same) with the check figure, the Capital balance should be $6,265. Do not move on until your Capital balance agrees

Prepare the Closing Entries on General Journal Page 3. Using the T-Accounts, calculate the balance in the Income Summary and Capital Accounts. 13. Post the Closing Entries to the General Ledger (use Account #600 for Income Summary) and calculate the new general ledger balances. Make sure the balances in your General Ledger accounts agree to the T-Accounts from step 12. When you post your entries to the general ledger, use J3 to indicate General Journal page 3 in the ref column. 14. Prepare a post-closing trial balance.