Cloud Art Studios started business June 1, 2023. Her plan was to offer art lessons and provide consulting The following transactions occurred:

1. June 1 Owner, Shelley Cloud had inherited $52,000 from her grandparents and invested that in the business.

2. June 1 She went to the store and purchased furniture costing $44000. It had a life of 7 years and a salvage value of $4,000. She also bought computer for $3100, life of 2 years and then would be a door stop.

3. June 2 She decided to rent, found a great location on White Avenue. She had to pay $2500 for the month.

4. June 2 When she dropped the cheque off to her landlord, he also wanted a deposit for her last month rents of her lease for $2,700, which she paid. ( She signed a 5 year lease)

5. June 3 She went to the Art supply store and purchased $4,000 worth of art supplies on credit.

6. June 4, she received a cheque for $12,000 for 12 months of art lessons, started at the beginning of the month.

7. June 10, she earned $5,000 for art lessons, unfortunately the person did not have the money but promised to pay later

8. June 7 Paid for some advertising in the community newsletter, it cost $800

9. June 11 She had to pay for her annual insurance $7000.Policy effective June 1

10. June 15 Earned $5,000 for consulting she had done, cash received

11. June 17 Received $ 4000 for art lessons provided

12. June 18 Got really busy, had to hire a new assistant.

13. June 19 She acted on a hot tip for a stock investment, cost $9,000 cash and she intends to hold it for 5 years

14. June 20 She wanted to expand, so she went to the bank and borrowed $50,000

15. June 22 She purchased more supplies on credit for $12,000

16. June 24 Shelley took a potential customer out for dinner and paid $120

17. June 26 She looked at the bank statement and had been charged $50 for bank charges

18. June 27 Paid for the supplies purchased June 3

19. June 28 Paid assistant $2,100 for a week ( 5 days)

20. June 30 Her friend wanted to go on holidays, so Shelley took $5,000 from the account and booked the tickets for Europe

The following information related to month end, do the following adjusting entries:

1. No depreciation expense had been claimed. Round to nearest $

2. After doing a physical count of supplies at month end, she had $10,000 on hand

3. Wages were not accrued

4. Adjust unearned revenue at month end

5. Consulting fees earned of $15,000 must be accrued

6. Adjust insurance at month end. Round to nearest $

Prepare the following:

1. General journal entries in good form

2. Adjusting entries in good form

3. Prepare a work sheet

4. Prepare financial statements, including an income statement, statement of changes in owners equity and a classified balance sheet

5. Prepare closing entries in good form