Extra Credit Project $25$ "Add Back" Points

Due Date: No later than Thursday, May $16$th

Page $1$ of $4$

Baker Well Drilling, Inc. of Baker City, Oregon started business June $1,$

The company has hired you to provide accounting services for

their first "two" months of their business operations.

The accounting services you're to provide are as follows:

From the detailed information on the following $3$ pages, prepare

journal entries in date order using proper form and correct account

names. Note: you may omit explanations.

Post all journal entries to ledger accounts using $"T"$ accounts.

Prepare a Trial Balance as of July $31,2023.$

Prepare adjusting entries. Note: you may omit explanations.

Post adjusting entries to the ledger accounts you have adjusted.

Prepare an "Adjusted Trial Balance" as of July $31,2023.$

Prepare the following ysing proper format, headings and dates:

a$.$ Income Stat $6/1$: Issued Common Stock for cash in the amount of $$150,000$

$6/2$:Purchased a small building to be used as a shop. The price

was $$80,000$: $$12,000$ paid with cash, the remaining balance was

a $5$ year Note Payable in the amount of $$68,000.$ The purchase

price of $$80,000$ was allocated to land in the amount of $$15,000$

and the remaining amount of $$65,000$ to the shop building. Loan

payments are made quarterly; the first payment is due on $9/2/23.$

$6/3$:A Super Heavy$-$Duty Ford Truck was purchased with special $$No

Money Down$$ and $$No Interest$$ through Ford Credit Corporation.

Purchase price was $$55,000$ and the first payment is due on $8/3/23.$

$6/4$:Well Drilling Equipment was purchased for $$18,500$ cash. Prepaid a $12-$month insurance policy. The policy was effective

as of June $1$st$,$ and cost $$3,540.$

$6/5$:Well Drilling Supplies were purchased on a $30-$day credit account

in the amount of $$2,865.$

$6/6$: Advertised in the weekly Baker City Farm News. Total cost was

$$1,110$ with payment due by July $10$th$.$

$6/7$:Hired an employee at $$3,800$ per month, advising the newly hired

employee that pay day will be on the first business day of each month.

$6/9$:A drilling bid of $$9,900$ was accepted by their first customer for

a job to start on $6/12,$ the contract was signed on $6/9.$

$6/19$:Bid a second job for $$15,900$ and received a $$5,900$ cash payment

$6/21$: Completed the well drilling job started on $6/12$ and billed the

customer for the agreed contract price.

$6/28$: Paid the advertising bill received from Baker City Farm News.

$7/2$: Paid employee$$s wages for June. Note: since it was for a short

Month $(6/86/30)$ total paid was prorated in the amount of

$$2,850.$

$7/3$: Paid $$1,000$ on account for the supplies purchased on $6/5.$

$7/6$: Completed the well drilling job started on $6/25$ and billed

customer for the remaining balance due.

$7/12$: Bid a third job for a contract price of $$15,750$ and started the

job immediately.

$7/16$: While working on the third job, a repair to equipment was

required, the cost of the repair was $$810$ and was paid in cash.

$7/18$: Received $$4,000$ partial payment from the first job that was

completed and billed last month on $6/21.$

$7/27$: Completed the third job that was started on $7/12.$ Billed the

customer for the contract price.

$7/31$: A count of drilling supplies on hand indicated unused supplies

still on hand totaled $$1,455.$

$7/3$: Employee wages of $$3,800$ for the month of July are scheduled

to be paid on August $2$nd$.$

$7/31$: Depreciation expense on the building for $2$ months amounts

to $$1,200.$ Depreciation expense on drilling equipment for $2$ months

amounts to $$450.$ Depreciation expense on the truck for $2$ months amounts

to $$625.$

$7/31$: Interest expense has accrued on the note payable for the shop

building and land in the amount of $$645.$

Financing the Ford Super Heavy$-$Duty Truck was a zero interest

financing offer, therefore, no interest has accrued.

$7/31$: $2$ months of the prepaid insurance policy has now expired.

Baker Well Drilling, Inc. of Baker City, Oregon started business June $1,$

$2023.$ The company has hired you to provide accounting services for

their first $$two$$ months of their business operations.

The accounting services you$$re to provide are as follows:

$1.$ From the detailed information on the following $3$ pages, prepare

journal entries in date order using proper form and correct account

names. Note: you may omit explanations.

$2.$ Post all journal entries to ledger accounts using $$T$$ accounts.

$3.$ Prepare a Trial Balance as of July $31,2023.$

$4.$ Prepare adjusting entries. Note: you may omit explanations.

$5.$ Post adjusting entries to the ledger accounts you have adjusted.

$6.$ Prepare an $$Adjusted Trial Balance$$ as of July $31,2023.$

$7.$ Prepare the following using proper format, headings and dates:

a$.$ Income Statement for the two$-$month period ending July $31,2023.$

b$.$ Retained Earnings Statement for the same $2-$month period.

c$.$Classified$$ Balance Sheet as of July $31,2023.$

$8.$ Prepare closing journal entries. Note: you may omit explanations.

$9.$ Post the closing entries to ledger accounts.

$10.$ Prepare a Trial Balance after closing as of July $31,2023.$