Iggy Lion formed ROAR Adventures, Inc., an adventure rock climbing company, in June 2023. The transactions for the month of June are shown below: June 1 Issued 5,000 shares of common stock, $1.50 par value, for $13,000. 1 Borrowed $8,000 from the bank signing a two-year, 6% promissory note. 1 Paid $9,020 to purchase climbing equipment for $4,820, and other equipment for $4,200. 1 Paid $220 for June internet and phone services. 3 Purchased supplies for $980 on account. 4 Hired four employees who will be paid $480 per five-day work week (Monday- Friday). They will begin working on Monday, June 12. 5 Obtained insurance for $9,840 covering the 12 months from June 1, 2023 through May 31, 2024. Paid $2,460 cash for the first three months of coverage. 5 The company decided it no longer need the other equipment purchased on June 1 and sold the other equipment for $3,950 cash without ever using that equipment. 16 Billed customers $3,900 for services performed through June 9. 17 Received $540 from a customer for four weeks of services to begin June 19, 2023. (By paying in advance, this customer received 10% off the normal weekly fee of $150.) 18 Paid $300 of the amount owed for the supplies purchased on account. 20 Paid $3 per share to buy 300 shares of common stock from a current shareholder to be held as treasury stock. 23 Billed customers $4,300 for services performed through June 16. 24 Paid cash for employee wages for two weeks (Monday, June 12-Friday, June 16 and Monday, June 19-Friday, June 23). 25 Collected $2,500 cash from customers billed on June 16. 27 Paid $220 for July internet and phone services. 28 Declared and paid a cash dividend of $0.20 per share. F22 Page 1 of 2 INSTRUCTIONS: a. Journalize the June transactions listed above. You do not need to include an explanation for each journal entry. b. Post to the ledger-use T-accounts. c. Prepare the unadjusted trial balance as of June 30, 2023. d. Journalize the following adjustments. (Round all amounts to whole dollars) 1. Services performed for customers through June 30, 2023 but unbilled and uncollected were $3,800. 2. Received notice that a customer who was billed $200 for services performed June 10 has filed for bankruptcy. The company does not expect to collect any portion of this outstanding receivable. 3. The company uses the allowance method to estimate bad debts. It estimates that 3% of its month-end receivables will not be collected. 4. Record one month of depreciation for the climbing equipment. Use the straight- line method, an estimated life of 4 years, and $500 salvage value. 5. Record one month of insurance expense. 6. An inventory count shows $400 of supplies on hand as of June 30. 7. Performed one week of services for the customer who paid in advance on June 17. 8. Accrue for wages owed through Friday, June 30. 9. Accrue for interest expense for one month. 10. Assume a 20% income tax rate. (Hint: Prepare an income statement up to "income before taxes" to help with the income tax calculation.) e. Post adjusting journal entries to the T-accounts. f. Prepare the adjusted trial balance. g. Prepare, in good form and properly formatted, a multi-step income statement, a retained earning statement, and a properly classified balance sheet as of June 30, 2023. h. Prepare and journalize the four closing entries. i. Post the closing entries to the T-accounts. j. Prepare the post-closing trial balance. k. Compute the following as of June 30 (you must also show the formula and your detailed computations, not just the answer): a. Current Ratio b. Profit Margin c. Debt to Asset Ratio d. Times Interest Earned Ratio c. Payout Ratio 722 Page 2 of 2