CH 8 Instructions 1. Record the necessary journal entries. 2. Prepare a trial balance, multi-step income statement (for internal purposes), a statement of retained earnings, and a classified balance sheet for June 30th. CR Sit on Your Grass Adjusted Trial Balance At 5/31/20 Account DR Cash $ 59,759 Accounts Receivable $ 4,100 Allowance for Doubtful Accounts $ Prepaid Insurance $ 2,400 Inventory $ 3,200 Interest Receivable $ Notes Receivable $ Equipment $ 9,800 Accounts Payable $ 3,075 Wages Payable $ 950 Deferred Revenue $ 775 Notes Payable $ 28,000 Common Stock $ 25,000 Retained Earnings $ 13,325 Dividends $ Sales Revenue $ 19,940 Interest Revenue Sales Discounts $ 12 Sales Returns and Allowances $ 40 Cost of Goods Sold $ 7,704 Wages Expense $ 1,725 Rent Expense $ 1,500 Utilities Expense $ 225 Advertisting Expense $ 300 Bad Debt Expense $ Interest Expense $ 200 Income Tax Expense $ 100 Total $ 91,065 $ 91,065 June Transactions 6/1/2020 Paid June rent in the amount of $500. 6/1/2020 Loaned $5,000 to I. Will Pay on a 7 month, 6% note. 6/5/2020 Paid the utility bill from May 6/8/2020 Received 12 lawnchairs from We Can Make That. 6/8/2020 Returned 1 lawnchair to We Can Make That 6/10/2020 Received goods from Buncha Stuff 6/12/2020 Delivered goods purchased on 6/8 to Just Relax 6/14/2020 Sold goods from Buncha Stuff to Bob's Hardware Store on account. 6/15/2020 Received utility bill, payment is due in 3 weeks and will be paid then. 6/15/2020 Paid balances due to We Can Make That and Buncha Stuff 6/15/2020 Ran payroll records. Employees earned $675 and will be paid in 7 days. 6/22/2020 Paid wages from recent payroll run. 6/30/2020 Ran payroll records. Employees earned $725 and will be paid in 7 days. 6/30/2020 The aging method was deployed to estimated bad debts and the correct balance of ADA should be $150. Ch 8 Additional Data Date 6/8/2020 Bill Date 6/14/20201 We Can Make That 123 Not Sure How Figure It Out, IL 61111 American Utilities 123 Electric Avenue Power, IL 61111 Due Date 7/5/2020 Customer: Sit on Your Grass Terms 5/5,n/30 Customer: Sit on Your Grass Item Lawn Chairs $ 75.00 Ulitity Services Qty Cost/Unit 12 $ 12 Total 144 $ Total $ 75.00 Total $ 144 Date 6/10/2020 Date 6/14/2020 Buncha Stuff 123 We've Got It Buyitall, IL 61616 Sit on Your Grass 123 Recline Dr. Plopasquat, IL 61616 Customer: Sit on Your Grass Terms n/30 Customer: Bob's Hardware Terms 2/10, n/30 Item Lawn Chairs Benches Pillows Tables Total Qty Cost/Unit 20 $ 11 10 19 40 3 Total $ 220 $ 190 $ 120 $ 140 $ 670 Item Lawn Chairs Benches Pillows Tables Total Qty Price/Unit 8 $ 22 3 35 14 6 2 40 Total $ 176 105 $ 84 $ 80 $ 445 5 28 CH 8 Instructions 1. Record the necessary journal entries. 2. Prepare a trial balance, multi-step income statement (for internal purposes), a statement of retained earnings, and a classified balance sheet for June 30th. CR Sit on Your Grass Adjusted Trial Balance At 5/31/20 Account DR Cash $ 59,759 Accounts Receivable $ 4,100 Allowance for Doubtful Accounts $ Prepaid Insurance $ 2,400 Inventory $ 3,200 Interest Receivable $ Notes Receivable $ Equipment $ 9,800 Accounts Payable $ 3,075 Wages Payable $ 950 Deferred Revenue $ 775 Notes Payable $ 28,000 Common Stock $ 25,000 Retained Earnings $ 13,325 Dividends $ Sales Revenue $ 19,940 Interest Revenue Sales Discounts $ 12 Sales Returns and Allowances $ 40 Cost of Goods Sold $ 7,704 Wages Expense $ 1,725 Rent Expense $ 1,500 Utilities Expense $ 225 Advertisting Expense $ 300 Bad Debt Expense $ Interest Expense $ 200 Income Tax Expense $ 100 Total $ 91,065 $ 91,065 June Transactions 6/1/2020 Paid June rent in the amount of $500. 6/1/2020 Loaned $5,000 to I. Will Pay on a 7 month, 6% note. 6/5/2020 Paid the utility bill from May 6/8/2020 Received 12 lawnchairs from We Can Make That. 6/8/2020 Returned 1 lawnchair to We Can Make That 6/10/2020 Received goods from Buncha Stuff 6/12/2020 Delivered goods purchased on 6/8 to Just Relax 6/14/2020 Sold goods from Buncha Stuff to Bob's Hardware Store on account. 6/15/2020 Received utility bill, payment is due in 3 weeks and will be paid then. 6/15/2020 Paid balances due to We Can Make That and Buncha Stuff 6/15/2020 Ran payroll records. Employees earned $675 and will be paid in 7 days. 6/22/2020 Paid wages from recent payroll run. 6/30/2020 Ran payroll records. Employees earned $725 and will be paid in 7 days. 6/30/2020 The aging method was deployed to estimated bad debts and the correct balance of ADA should be $150. Ch 8 Additional Data Date 6/8/2020 Bill Date 6/14/20201 We Can Make That 123 Not Sure How Figure It Out, IL 61111 American Utilities 123 Electric Avenue Power, IL 61111 Due Date 7/5/2020 Customer: Sit on Your Grass Terms 5/5,n/30 Customer: Sit on Your Grass Item Lawn Chairs $ 75.00 Ulitity Services Qty Cost/Unit 12 $ 12 Total 144 $ Total $ 75.00 Total $ 144 Date 6/10/2020 Date 6/14/2020 Buncha Stuff 123 We've Got It Buyitall, IL 61616 Sit on Your Grass 123 Recline Dr. Plopasquat, IL 61616 Customer: Sit on Your Grass Terms n/30 Customer: Bob's Hardware Terms 2/10, n/30 Item Lawn Chairs Benches Pillows Tables Total Qty Cost/Unit 20 $ 11 10 19 40 3 Total $ 220 $ 190 $ 120 $ 140 $ 670 Item Lawn Chairs Benches Pillows Tables Total Qty Price/Unit 8 $ 22 3 35 14 6 2 40 Total $ 176 105 $ 84 $ 80 $ 445 5 28