JOURNAL ENTRIES AND T-ACCOUNT ILLUSTRATION PROBLEM Jim Wooldridge decides to start a new business, Wooly Consulting, a firm specializing in placing out of work coaches with jobs, giving coaching seminars and public speaking engagements. During the month of June 20XX he completed the following transactions: Required: Step 1: Prepare general journal entries to record the transactions in the provided general journal. Read the preparation tips that appear after the transactions on the next page NOW! Step 2: Post the entry amounts to the T-accounts represented in the general ledger as you go. Step 3: Prepare a trial balance for Wooly Consulting as of June 30, 20XX. June 1 Jim began his business by transferring equipment valued at $4,200 into the business. He also Jim purchased a car, costing $20,000 by paying $4,000 cash and signed a note for the balance with Biggs auto dealership. The note provides for a 10% APR interest cost Jin purchased a new computer for $900 and supplies for $200, all on open account: payment terms 1/10, n/30. Jim filled bought gasoline for the car. $55. He put the purchase on the new credit card s first customer Larry Brown, prepays Jim to do a job search for him. Larry es $500 cash for a speaking engagement on the Triangle offence scheme a former player of his, "Hoops Wilson as an assistant to work with him, to for a motel room and food on the credit card, $445. licy for 12 months' coverage on the car from NoState ne 2 Jim filled bought une 3 Jim's first customer Larry gives Jim $3,000 cash in advance. une 5 Jim receives $500 cash for a speaking engagement June 7 Jim hires a former player of his, "HO be paid $10 an hour. June 8 Jim put travel expenses for a motel room and too bus magazine June 9 Jim receives a bill for an ad he had placed in receives a bill for an ad he had placed in Coaches Anonymous magazm advertising Wooly Consulting. The ng Wooly Consulting. The ad ran last week. The bill is for $220, due in 10 days. There is an 18% APR interest charge on overdue accounts. June 10 Jim purchased office supplies at Staples for $140, paying cash. June 12 Jim purchased an insurance policy for 12 months' coverage on the car Insurance. He was required to pay a full year in advance, $2,400. June 13 Found Larry Brown a job with Tennessee State University. Hint: This event is the June 3 event above. June 13 Billed on account, two hockey coaches for consulting on how to beat the Canadians in the Olympic winter games, $2,000. June 14 Paid Hoops, the assistant for 40 hours' work. June 21 Made a $640 payment on the note signed for the car. This payment consists of both interest and principal. Hint: there has been 20 days since the loan began on June1. Round the interest calculation result to the nearest dollar. June 21 Paid Hoops, the assistant for 40 hours' work. June 22 Received the utility bill for $280, however it is not due for 15 days. June 23 Received payment from one of the hockey coaches billed on June 13. $1.000. June 24 Found Bob Huggins a job with the West Virginia Hill Hoppers, billed him $4,300. June 25 Paid the bill for the computer purchased on June 1. June 28 Paid Hoops, the assistant for 40 hours' work. June 29 Purchased ads that will run immediately for $400 on open account in two magazines. June 30 Used $100 of the supplies previously purchased June 30 Jim withdraws $300 cash to go play golf with. June 30 Received and immediately paid the telephone bill of $220. June 30 Paid off the balance on the credit card. June 30 Realized that he had not paid off the account for the ad on June 9. Sent in payment with the interest for the overdue account. Round the interest to the nearest dollar amount. Preparation Tips! Read these before starting! In preparing your General Journal entries, be sure to skip a line between each entry. Otherwise your GJ will look like one big ugly journal entry with the inability to tell where one entry begins or ends. Write small in the cash account, there is not much room for a lot of transactions. You may need to use two columns on the credit side. The interest calculation rounding directions are included in the appropriate transactions. You will not use the A/D Comp / Equip, A/D Car, Salary Payable, Interest Payable, Depreciation Expense, and Insurance Expense accounts today. They are for future use