General Journal

Adjustments

Closing entries

Trial Balance

General Ledger

Only use the accounts listed in the Chart of accounts. Do not add new accounts.

You can add rows to the General Ledger in case there are not sufficient rows (e.g., Cash account).

All journal entries must ultimately be posted into the General ledger.

Enter transaction entries in the General Journal, except for adjusting entries and closing entries for which the instructor has created two separate tabs; therefore, enter adjusting entries in the Adjustments tab, and the closing entries in the Closing tab.

The Adjusted TB totals should be $242,594.58 (Dr & Cr)

The Post Closing TB totals should be $90,073.68 (Dr & Cr)

When making closing entries (closing temporary accounts), use Retained Earnings. There is no need to use Summary account; however, if you do, that is fine too.

All entries (including adjusting entries and closing entries) must be entered in the General Ledger; however, pay special attention as to the flow of balances for each account as you prepare the various Trial Balances, that is, as you move from Unadjusted TB to the Post closing TB.

Diner 84 is a Cash business as most diners are; therefore, you do not set up an Accounts receivable when sales are made, instead you debit the Cash account. Ignore Cost of goods sold when recording sales.

You should balance to a Net Income of &1,804.10, and Total Assets of $84,073.68.

1. Using the Chart of Accounts provided, record the transactions for month of June in the General Journal. Do not add new accounts. 2. Post the General Journal entries to the General Ledger. 3. Prepare the Unadjusted Trial Balance in the Trial Balance tab. 4. Journalize any adjusting entries in the General Journal and post to the General Ledger. Show your calculations for the adjustments in the Adjustments tab. 5. Prepare the Adjusted Trial Balance in the Trial Balances tab. 6. Prepare the closing journal entries in the General Journal and post to the General Ledger. 7. Prepare the Post-Closing Trial Balance in the Trial Balances tab. Also the Income Statement and Balance Sheet columns on the Trial Balance tab. 8. Prepare classified statements for the Income Statement, Statement of Retained Earnings, Statement of Stockholders' Equity, and Balance Sheet Statement for the period of July 1, 2020 - June, 30 2021 in the appropriate tabs. Ignore the effects of income tax. 1. The business began on July 1, 2020. 2. The period under consideration is July 1, 2020 - June 30, 2021. 3. For the purposes of this assignment, ignore the effects of cost of goods sold, income tax, property tax, sales tax, and payroll tax. 4. Straight-line depreciation method is used. 5. The supplies on hand June 30, 2021 were $750. 6. Physical count of food inventory on hand June 30, 2021 was $1,500. 7. The telephone bill for June 30, 2021 for $135 was received July, 2021. 8. The utility bill for June 30, 2021 for $285 was received July 2021. 9. For the purposes of this assignment, consider the note payable for delivery van purchase to be a current liability. 10. The following transactions occurred in the first month of operations and are reflected in the general ledger account balances: July 1, 2020 Liz Bumes and her brother, James each invested $15,000 in a corporation they formed to run Diner 84, Inc. Each were issued 1,500 shares of $10 par value common stock. July 1, 2020 The corporation took a $30,000 small business loan from a local bank. The loan is an 'interest only' loan for three years at a fixed rate of 12% per year. A balloon payment of the principal will be due in 3 years. The monthly interest payment due by the 10th of the following month. July 1, 2020 Because this was a new business, the landlord required the business to prepay $6,000 for the rent for the first six month, plus a $1,500 security deposit for a total cash outlay of $7,500 July 1, 2020 The business purchased equipment and fixtures for $20,000 in cash. The assets have a useful life of 10 years. July 1, 2020 The company purchased a delivery van value at $40,000 with a $15,000 down payment and a 3-year, $25,000 note payable with an annual intereste rate of 6%. The truck has a 10-year useful life. The monthly payment including principal and interest is $760.55. July 8, 2020 Preston Hill, a local Bed & Breakfast (B&B), arranges with Diner 84 to provide breakfast for their guests at $10 per person per day. Diner 84 will bill the B & B at the end of each month for the meals provided. Payment is required by the 10th of the next month. July 15, 2020 Paid $4,800 for two-year fire and liability insurance with coverage beginning September 1, 2020. 11 For Closing entries, close accounts directly to retained earnings, do not use a Summary account. 100 110 115 125 130 135 140 150 155 160 Assets Cash Accounts receivable Food Inventory Supplies Prepaid rent Prepaid insurance Delivery Van Equipment and Fixtures Accumulated depreciation Security deposit 210 220 230 240 Liabilities Accounts payable Notes payable Gift Certificates Interest payable 300 310 Stockholders' Equity Common stock Retained earnings Revenue Sales revenue 400 500 600 610 620 630 640 650 660 665 670 675 680 685 690 695 700 750 Expenses Cost of Goods Sold Advertising expense Salaries expense Supplies expense Rent expense Depreciation expense Interest expense Insurance expense Gasoline Telephone expense Printing expense Repair expense Utilities expense Uniform expense Cleaning & maintenance expense Dividends Income summary Date Description June 2, 2021 Paid June rent in the amount of $1,000. June 2, 2021 Paid $750 for six-months auto insurance policy beginning June 1. June 5, 2021 Food purchases in the amount of $1,200 paid in cash. June 6, 2021 The business purchased $2,500 for supplies on account from Jones Supplies Co. June 8, 2021 Payment received from Preston Hill B & B for May 2021. June 12, 2021 Food purchases in the amount of $600 paid in cash. June 16, 2021 Cash receipts were deposited in the amount of $3,800. June 16, 2021 Paid $1,200 to employees for wages earned during the first two weeks of June. June 22, 2021 Paid amount due to Jones Supplies Co. June 22, 2021 Cash receipts were deposited in the amount of $4,500. June 26, 2021 Paid utilities bill in the amount of $355. June 26, 2021 Paid telephone bill in the amount of $170.00. June 26, 2021 Cash receipts were deposited in the amount of $3,000. June 28, 2021 Paid for cleaning and maintenance expense for the month, $1,150. June 30, 2021 Truck payment remitted - Total $760.55 (Principal = $664.73; Interest = $95.82) June 30, 2021 Cash receipts were deposited, $6,500. June 30, 2021 Sent and recorded invoice to Preston Hill B & B for month of June in the amount of $600. June 30, 2021 Paid $3,850 to the company credit card for the following charges: Advertising: $1,850 Uniforms: $300 Repairs: $250 Printing: $800 Gasoline: $650 June 30, 2021 Paid $1,000 to employees for wages earned during the last two weeks of June. June 30, 2021 Sold $250 in gift certificates to customers in cash. June 30, 2021 Dividends paid to shareholders in the amount of $500. Diner 84, Inc. General Journal - Period July 1, 2020 - June 30, 2021 2021 Date Description PR Debit Credit Diner 84, Inc. Adjustments Diner 84, Inc. Closing entries Diner 84, Inc. Trial Balance For the Period of July 1, 2020 - June 30, 2021 Account Number Account Unadjusted Trial Balance Debit Credit Adjusting Entries Debit Credit Adjusted Trial Blance Debit Credit Closing Enries Debit Credit Post-Closing Trial Balance Debit Credit Income Statement Debit Credit Balance Sheet Debit Credit 100 110 115 125 130 135 140 150 155 160 210 220 230 240 300 310 400 500 600 610 620 630 640 650 660 665 670 675 680 685 690 695 700 750 Cash Accounts receivable Food Inventory Supplies Prepaid rent Prepaid Insurance Delivery Van Equipment and fixtures Accumulated depreciation Security deposit Accounts payable Notes payable Gift certificates Interest payable Common stock Retained earnings Sales revenue Cost of goods sold Advertising expense Salaries expense Supplies expense Rent expense Depreciation expense Interest expense Insurance expense Gasoline Telephone expense Printing expense Repairs expense Utilties Expense Uniform expense Cleaning & mainenance expense Dividends Income Summary Net Income Totals General Ledger 2021 Cash Prepaid rent Security deposit PR Debit Account No. 100 Debit Credit Balance 18.884.23 Date June 1 Dobit Explanation Beginning balance Debit Account No. 160 Debit Credit Balance 1.500.00 Account No. 130 Dahil Credit Balance si 000.00 Date June 1 Explanation PR Beginning ACR Dale June 1 Explanation PR Beginning balance Accounts payable Prepaid Insurance Account No. 210 Credit Credit Balance Date Explanati PR Debit Debit Date June 1 Account No. 135 Debit Credit Balance 4,800.00 aan Explanation PR penang Beginning balance Delivery Van Nolee payable Accounts receivable Account No. 140 Debit Credit Balance 40,000.00 Account No. 110 Debit Credit Balance 400.00 Account No. 220 Credit Credit Balance 49,161.31 Debit PR Debit Debit Explanatior PR Beginning balance Date June 1 Explanation PR Beginning balance Date June 1 Dale June 1 Explanation Beginning balance Gift Certificates Account No. 230 Credit Credit Balance Food Inventory Date Explanati PR Debit Account No. 115 Debit Credit Balance 625.00 PR Debit Equipment and Fixtures Date June 1 Explanation Beginning balance Account No. 150 Debit Credit Balance 20,000.00 Debit Date June 1 Explanation PR Beginning balance Interest payable Account No. 240 Credit Credit Balance Supplies Date Explanation Debit Account No. 125 Debit Credit Balance 750.00 PR Debit Date June 1 Explanation Beginning balance Accumulated depreciation Date Explanatio PR Account No. 155 Credit Credit Balance Debit Common stock Salaries expense Insurance expense Account No. 300 Credit Credit Balance 30,000.00 Account No. 660 Debit Credit Balance PR Debit Account No. 610 Debit Credit Balance 20,400.00 Debit Date Explanati PR Date June 1 Debit Explanation Beginning balance Date June 1 Explanation PR Beginning balance Retained earnings Account No. 310 Credit Credit Balance Supplies expense Gasoline expnese Date Explanation PR Debit Account No. 620 Debit Credit Balance Account No. 665 Debit Credit Balance 2,100.00 Date Explanatio PR Debit Debit Date June 1 Explanation PR Beginning balance Sales revenue Account No. 400 Credit Credit Balance 135,425.00 PR Debit Rent expense Telephone expnese Date June 1 Explanation Beginning balance Account No. 630 Debit Credit Balance 5,000.00 Account No. 670 Debit Credit Balance 1,350.00 Debit Debit Date June 1 Explanation PR Beginning balance Date June 1 Explanation PR Beginning balance Cost of goods sold Account No. 500 Debit Credit Balance 83,750.00 Depreciation expense Printing expense PR Debit Date June 1 Explanation Beginning balance Account No. 640 Debit Credit Balance Account No. 675 Debit Credit Balance 1,200.00 Date Explanatio PR Debit Debit Date June 1 Explanation PR Beginning balance Advertising expense Interest expense Repairs expense Account No. 600 Debit Credit Balance 1,500.00 Account No. 650 Debit Credit Balance 1,105.08 Account No. 680 Debit Credit Balance 850.00 PR Debit Date June 1 Debit Debit Explanation Beginning balance Date June 1 Explanation PR Beginning balance Date June 1 Explanati PR Beginning balance Utilities expense Account No. 685 Debit Credit Balance 2,135.00 PR Debit Date June 1 Explanation Beginning balance Uniform expense Account No. 690 Debit Credit Balance 900.00 PR Date June 1 Debit Explanation Beginning balance Cleaning & maintenance expense Account No. 695 Debit Credit Balance 1,340.00 PR Debit Date June 1 Explanation Beginning balance Dividends Account No. 700 Debit Credit Balance Date Explanation PR Debit Income Summary Account No. 750 Credit Credit Balance Date Explanation PR Debit This is how your first J/E should look like in the General Journal. Jun 1 1,000.00 Rent Expense Cash 630 100 1,000.00 To record June rent payment The first adjusting entry is (use as a guide, notice that the posting reference (PR) is the account number): June 30, 2021 Depreciation Expense Accumulated Depreciation Depreciation- Equipment & Fixtures 640 $ 2,000.00 155 $ 2,000.00