In the excel document provided, prepare: o The journal entries (found on the next page), in good form. Dont forget any adjusting entries needed for the end of the month! o Create a General Ledger(T-accounts)from these journal entries o CreateanadjustedTrialBalance o CreateaBalanceSheetandaMulti-StepIncomestatementfortheirfirst(andonly) month of operations.

1. August 1st, the company issued 100 common shares to Dave at $2/ share. He paid right away
2. August 1st, Dave called the Bank of Montreal to discuss getting a $500,000 loan at a 5.5% interest rate. The bank will decide next week.
3. August 1st, Dave looks at several storefronts to sell his shoes. He decides to rent a location on
4. Victoria Street in Kamloops, and pays the building owner $5,000 cash. $2,000 for the month of August rent, $2,000 for September rent and a $1,000 security deposit, returned at the end of the 5 year lease.
5. August 4th, The Bank of Montreal calls and confirms that they will give the company a $500,000 loan. The money appears in the company bank account that day. (assume the bank loan is all non-current for now). Payments begin September 4th.
6. August 4th, the company creates a website and pays $500 in cash for the first month hosting fees.
7. August 4th. The company purchases a car for $75,000. They pay $50,000 cash and have a car loan for the remainder. They plan on paying the car loan off within the next 8 months and think the car will last 10 years.
8. August 4th. The company orders their first shipment of shoes from the factory in China. The shoes cost $90,000 and freight costs are an additional $5,000. They will pay for the shoes at a later date however they leave the factory the same day as the purchase, FOB shipping point.
9. August 4th. The company pays $12,000 in car insurance for the year
10. August 4th. The company receives $50,000 from the Kamloops Pickleball Association for an advanced order of shoes.
11. Daves sister, Bety, is in some financial trouble. Dave agrees that the company will lend his sister $25,000 and pays Bety this amount August 4th. Dave and Bety agree that she will repay the loan in six months. They also agree that she will pay 10% interest on the loaned amount.
12. August 10th. The August 4th shoe shipment arrives at the store
13. August 11th, the company ships the shoes ordered from the Kamloops Pickleball Association. Freight out costs the company $500 and they will pay it at a later date.
14. August 15th. The company has a meeting to discuss hiring 5 new employees, 25 hours a week at a rate of $20/ hr . Dave took out 5 potential employees for dinner. They all seemed like they will fit in and he hired them. Dinner cost $300 and Dave charged the dinner to the company MasterCard.
15. August 20th. The company orders more shoes from the factory in China. The shoes cost $140,000 and freight costs are an additional $10,000. They will pay for the shoes at a later date however they leave the factory the same day as the purchase, FOB shipping point.
16. August 22nd. Dave goes to Costco and buys $1,500 of toilet paper, cleaning supplies, pens, pencils, invoice paper and other assorted supplies for the office. He pays cash right away.
17. August 26th. The company pays for the shoes from the August 4th purchase.
18. August 27th, the company pays for the following items, in cash a. )Utilities bill for August, $2,500 b. )Phone bill for August, $500 c. )Internet bill, $500 - $300 was for internet service for the month of August, $200 was a damage deposit on the modem. d.) Advertising on the local radio, $4,000. These ads are for advertising in December. It is competative to get advertising spots at that time of year, so Dave needed to purchase the advertising now.
19. August 27th. Dave pays for fuel for the company car, $120, and charges it to the company MasterCard.
20. August 27th. Dave sell $35,000 of shoes to Kelowna Racket Club on account. The cost of the shoes was $10,000.
21. During construction of the shoes, Dave made a change to the original design of the outer sole of the shoes. He applied for a patent, and it was approved august 25th. Dave paid the patent registration fees of $25,000 in cash that same day.
22. August 25th. Dave pays wages to the employees, $5,000

Adjusting entries (hints for adjusting entries)

1. Dave counted the supplies inventory at August 31st and found that there was $950 worth of supplies on hand at the end of the month.
2. Are there any entries that need to be made on the use of the car? Think depreciation for the month of August. Insurance?
3. At month end, Dave counts $210,000 worth of shoes on hand at August 31st. The rest of the shoes must have been sold.
4. Does anything need to be done for the loan made to Bety?
5. Employees worked August 26th, 27th, 28th and 29th for a total Salary expense of $4,000. They will be paid September 8th as part of the regular payroll run (which Dave estimates to be $10,000 for this date) does this information mater for August?
6. Does anything need to be accrued for our $500,000 BMO bank loan?