CHANGE THE ACCOUNTS PAYABLE FROM $12,650 TO $64,450

PLEASE COMPLETE ALL THE INSTRUCTIONS & QUESTIONS:

The Susan's Sewing Supplies, owned by S. Sullivan, sells fabric. The shop has a June 30/2020fiscal year end, uses a perpetual inventory system. On June 1/2020, the company's trial balance reported the following: Cash Merchandise inventory Supplies Sales Returns and Allowances Sales discounts Land Building Accumulated depreciation - building Accounts payable Interest Payable Unearned revenue Notes payable-Due Dec. 2020 Mortgage Payable-Due 2025 $21,385 64,125 3,750 42,800 13,800 180.000 70,800 13,275 12,650 6,070 4,680 42,000 200,000 S. Sullivan, capital S. Sullivan, drawings Sales Rent revenue Cost of goods sold Advertising expense Salaries expense Rent expense Insurance expense Interest expense Accounts Receivable 58,400 $ 52,800 474,080 1,200 301,010 2,270 68,200 18,150 4,140 1,925 20,000 Transaction for the Month During the last month of the fiscal year, the company had the following transactions: 1. Borrowed $5,000 cash signing a 6 month Note Payable with 3% interest to be paid at the note's maturity 2. Purchased supplies on account for $345. 3. Signed a contract to sell goods for $30,600 per month starting the next month. 4. Paid the telephone bill from last month of $650 that had not been recorded 5. Received $525 cash in advance from customers for merchandise to be delivered in September. 6. Owner withdrew $4,800 cash. Adjustment and additional data 1. A count of supplies on June 30 shows $500 on hand. 2. The Building has an estimated 5-year useful life. 3. Of the mortgage payable, $60,000 must be paid on September 30 each year 4. An analysis of the Unearned Revenue account shows that 65% has been earned by June 30. 5. On June 30, services of $25,000 were provided but not recorded. 6. The mortgage payable has a 4% interest rate. Interest is paid on the first day of each month for the previous month's interest. 7. Employees earned $800 per day. On June 30, 6 employees were unpaid for 4 days. 8. A 12-month insurance policy was purchase February 1, 2020 for $1,800 9. The telephone bill for the month was for $550, and at the end of the month it was not recorded or paid Note: Answers are to be provided in the pages provided below. They are to be scanned as a pdf document and uploaded into Moodle as an assignment. There are free scanning apps available for your telephones. Do submit a series of photographs. I will NOT mark them!!!! Instructions (a) Using the T-Accounts provided below enter the opening balances for each account. Note- not all T Accounts needed may be created and blank T- Accounts are provided if accounts need to be created (b) Journalize the transactions for the month. Post the transactions and update the balances in the T-accounts. (C) Prepare an unadjusted trial balance at year end. (d) Record the adjustments required at the year end. Post the adjusting entries in the T Accounts created and update the account balances as required. (e) Prepare an adjusted trial balance at year end. (f) Prepare a multiple-step income statement, statement of owner's equity, and classified balance sheet. Answer the following Questions 1. When should adjusting entries be recorded? 2. Why does the accounting cycle include 'trial balances' 3. Calculate the gross profit margin and the current ratio for your business