Information for transactions that occurred in June are as follow: 1 June Paid salaries for the pay period ended May 31 1 Purchased an annual insurance liability policy for $24,000 4 Purchased the adjacent vacant lot for the future home of a new warehouse. The sale price was $40,000, closing costs were $2,000 and the cost to clean-up the litter and remove brush was $5,000. Paid $10,000 note carries a 5% interest rate. Purchase additional inventory on account, $192,000. Pay cash on accounts payable, $50,000. Received $12,225 from customer cash and signed a note that is payable for the balance that is payable in full in six months. The 7 9 payment came in early-not due for another month and a half who in 15 signed a note (see notes receivable) back in January. 16 Provide services to customers for cash, $49,700 16 Pay cash for salaries, $49,000. 25 Received $210,400 from customers on accounts receivable 26 Sold 500 shares of treasury stock for $22 per share. (bought in May for S18) 27 Write off accounts receivable as uncollectible, $5,000 28 Declared a cash dividend of S.25 (25 cents) per share payable on July 31 to shareholders of record as of June 30 29 Received and Paid bill for June utilities, $15,500 Firework sales for June total $420,000. All of these sales are on account. The cost of the units sold is $205,000. 30 Pay the second monthly installment of $990 related to the $50,000 borrowed on Mayl. Round your interest calculation to the nearest dollar. 30 Information for the adjusting entries as of the end of May are as follow Depreciation on the building for the month of June is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 29 years and a residual value of $20,000. Depreciation on the equipment is calculated using the double-declining balance method with a four-year service live and no residual value. At the end of June, $16,400 of accounts receivable are past due, and the company estimates that 40% of those accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. a. b. c. Unpaid salaries at the end of June are $53,100. By the end of June, and additional $12,000 of the gift cards sold on May 12 have been redeemed. The revenue from the gift cards is considered service revenue. d. e. f. g. h. A count of the supplies on hand at the end of June shows a total of $3,000. One month of liability insurance has expired. Accrue interest payable on the note issued in relation to the purchase of the land for June Income taxes due for the month of June are $10,300. Page: 79 DATE POST REF DESCRIPTION DEBIT CREDIT General Journal Practice Fireworks Worksheet For the month ended June 30, 2017 ACCOUNT NAME 1 Cash 2 Account 3 Allowance for Uncollectible Accounts 4 Supplies S inventory TRIAL BALANCE ADJUSTMENTS NCOME STATEMENT DEBIT BALANCE SHEET ADJUSTED TRIAL BALANCE CREDIT DEBIT CREDIT DEBIT DEBIT CREDIT DEBIT CREDIT s Receivable Prepaid Insurance 5|Notes Receivable (5%, 6-month note) 7 Interest Receivable 8 Land 9 Buildi 10 Accumulated Depreciation 2 Accumulated Depreciation, Equipment 13 Accounts Payable iNotes able 15 Deferred Revenue 16 Salaries Payable 17 Interest Payable 17 Dividends Payable 18 income Tax Payable 19 Common Stock, $1 par 20 Additional Paid in Capital 21 Retained Earnings 22 Dividends Practice Fireworks Worksheet For the month ended June 30, 2017 TRIAL BALANCE COUNT NAME ADJUSTMENTS ADJUSTED TRIAL BALANCE DEBIT INCOME STATEMENT DEBIT DEBIT CREDIT BALANCE SHEET DEBIT CREDIT CREDIT DEBIT CREDIT reasury Stock 24 Revenue 25 Revenue of Goods Sold 27 Interest Income 28 29 Supplies Expense tilities Ex 1 Insurance Expense 1 Depreciation Expense, Building 32 Depreciation Expense. Equipment 34 Bad Debt Expense 5 Income Tax Ex Net Income (Loss sheet Information for transactions that occurred in June are as follow: 1 June Paid salaries for the pay period ended May 31 1 Purchased an annual insurance liability policy for $24,000 4 Purchased the adjacent vacant lot for the future home of a new warehouse. The sale price was $40,000, closing costs were $2,000 and the cost to clean-up the litter and remove brush was $5,000. Paid $10,000 note carries a 5% interest rate. Purchase additional inventory on account, $192,000. Pay cash on accounts payable, $50,000. Received $12,225 from customer cash and signed a note that is payable for the balance that is payable in full in six months. The 7 9 payment came in early-not due for another month and a half who in 15 signed a note (see notes receivable) back in January. 16 Provide services to customers for cash, $49,700 16 Pay cash for salaries, $49,000. 25 Received $210,400 from customers on accounts receivable 26 Sold 500 shares of treasury stock for $22 per share. (bought in May for S18) 27 Write off accounts receivable as uncollectible, $5,000 28 Declared a cash dividend of S.25 (25 cents) per share payable on July 31 to shareholders of record as of June 30 29 Received and Paid bill for June utilities, $15,500 Firework sales for June total $420,000. All of these sales are on account. The cost of the units sold is $205,000. 30 Pay the second monthly installment of $990 related to the $50,000 borrowed on Mayl. Round your interest calculation to the nearest dollar. 30 Information for the adjusting entries as of the end of May are as follow Depreciation on the building for the month of June is calculated using the straight-line method. At the time the building was purchased, the company estimated a service life of 29 years and a residual value of $20,000. Depreciation on the equipment is calculated using the double-declining balance method with a four-year service live and no residual value. At the end of June, $16,400 of accounts receivable are past due, and the company estimates that 40% of those accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. a. b. c. Unpaid salaries at the end of June are $53,100. By the end of June, and additional $12,000 of the gift cards sold on May 12 have been redeemed. The revenue from the gift cards is considered service revenue. d. e. f. g. h. A count of the supplies on hand at the end of June shows a total of $3,000. One month of liability insurance has expired. Accrue interest payable on the note issued in relation to the purchase of the land for June Income taxes due for the month of June are $10,300. Page: 79 DATE POST REF DESCRIPTION DEBIT CREDIT General Journal Practice Fireworks Worksheet For the month ended June 30, 2017 ACCOUNT NAME 1 Cash 2 Account 3 Allowance for Uncollectible Accounts 4 Supplies S inventory TRIAL BALANCE ADJUSTMENTS NCOME STATEMENT DEBIT BALANCE SHEET ADJUSTED TRIAL BALANCE CREDIT DEBIT CREDIT DEBIT DEBIT CREDIT DEBIT CREDIT s Receivable Prepaid Insurance 5|Notes Receivable (5%, 6-month note) 7 Interest Receivable 8 Land 9 Buildi 10 Accumulated Depreciation 2 Accumulated Depreciation, Equipment 13 Accounts Payable iNotes able 15 Deferred Revenue 16 Salaries Payable 17 Interest Payable 17 Dividends Payable 18 income Tax Payable 19 Common Stock, $1 par 20 Additional Paid in Capital 21 Retained Earnings 22 Dividends Practice Fireworks Worksheet For the month ended June 30, 2017 TRIAL BALANCE COUNT NAME ADJUSTMENTS ADJUSTED TRIAL BALANCE DEBIT INCOME STATEMENT DEBIT DEBIT CREDIT BALANCE SHEET DEBIT CREDIT CREDIT DEBIT CREDIT reasury Stock 24 Revenue 25 Revenue of Goods Sold 27 Interest Income 28 29 Supplies Expense tilities Ex 1 Insurance Expense 1 Depreciation Expense, Building 32 Depreciation Expense. Equipment 34 Bad Debt Expense 5 Income Tax Ex Net Income (Loss sheet