Joe's Music Shop Project Information and Instructions Joe Smith own a shop in downtown Little Rock that sells musical instruments. He is looking for a new accountant for his business. He has asked you to prepare monthly financial statements for him to access your capabilities. He has provided the following information: His balance sheet for June 2021 Joe uses the specific identification method of inventory. All sales are billed and are recorded on the 15 and last day of each month. Sales for July were: o 15* - Sales = 10,250 Cost of Goods Sold = 4,600 o 31 - Sales = 8,715 Cost of Goods Sold=3,250 Joe has one employee that he pays $500 every Friday. The month started on a Monday and ended on a Wednesday. (Ignore payroll tax and withholdings) Depreciation expense for the building is $36,000 per year Depreciation expense for equipment is $900 per month A count revealed S600 supplies remained on July 31 $1,500 of the uncarned revenue was earned during the month The company also had the following transactions throughout the month: July 1 - Paid $1,200 for July rent July 2 - Paid $7,000 on accounts payable due July 6 - Received $3,000 from customers July 10 - Received $6,200 worth of inventory on account July 16 - Paid S750 for repairs and maintenance on equipment July 19 - Paid $5,000 on accounts payable due July 20 - Purchased new office equipment for $1,350 cash July 24 - Received $11,100 from customers Journal each transaction in chronological order. Do not forget the paydays, sales and adjusting entries at the end of the month. Then post these entries into your accounts. Use the provided balance sheet for beginning balance information Lastly, use the T accounts to create a trial balance. Joe's Music Shop Balance Sheet 30-Jun-21 ASSETS 18.200 4.625 4.500 1.800 29.125 Current Assets: Cash Accounts Receivable Inventory Supplies Total Current Assets PPE Buildings Acc. Depreciation - Buildings Equipment Acc. Depreciation - Equipment Land Total PPE TOTAL ASSETS 325,000 350.000 (25.000) 225,000 (152,900) 72,100 150,000 547.100 576.225 Liabilites and Stockholders Equity 12,500 5.250 17.750 200.000 217,750 Current Liabilites Accounts Payable Uneamed Revenue Total Current Liabilities Long Term Liabilites: Bonds Payable Total Liabilities Stockholder Equity Common Stock Add. PIC Common Stock Total Paid-In-Capital Retained Earnings Total Equity Total Liabilities and Equity 100,000 200,000 300,000 58.475 358,475 576,225