Journal Entry as of June

Adjusted Journal Entry

Prepare the multi-step Income Statement for the month of June and the classified Statement of Financial Position/Balance Sheet (similar to assignment/beginning May financials) as at June 30. (Amounts rounded to the nearest dollar) Gear Up (GU) Inc. Statement of Financial Position As at May 31, 2019 ASSETS Current Assets Cash Held-for-trading investments Accounts Receivable Inventory Total Current Assets $ 2,000 3,000 2,000 50,000 $ 57,000 $ 10,000 2,000 Long Term Assets Store equipment Less: Accum. depreciation, equipment Property and Equipment Land Total Long Term Assets $ 8,000 30.000 $38,000 TOTAL ASSETS $95,000 LIABILITIES & SHAREHOLDERS' EQUITY Current Liabilities Accounts payable Notes Payable Total Current Liabilities Total liabilities $ 6,000 30,000 $36,000 $36,000 Shareholder's Equity Common Shares Retained Earnings Total Shareholder's Equity $20,000 39,000 $59,000 TOTAL LIABILITIES & SHAREHOLDER'S EQUITY $95,000 Date Accounts Title and Explanation Debit Serial Number Credit 1 June 2 Accounts Receivable - East Robson 20,000 Sales Revenue 20,000 [Goods sold on account ] N June 3 Purchases 4,000 Accounts Payable - Everest Company 4,000 [Goods purchased on account ] 3 June 4 Accounts Receivable - West Rupert Co 3,000 Sales Revenue 3,000 [Goods sold on account] 4 June 5 Purchases 3,000 Accounts Payable - Kathmandu Ltd 3,000 [Goods purchased on account ] 5 5 June 6 Cash 10,000 Sales Revenue 10,000 [Goods sold for cash ] 6 June 7 Purchases 2,000 Cash 2,000 [Goods purchased for cash ] 7 June 8 Store Equipment 15,000 Notes Payable 15,000 [Store equipment purchased by singing a note payable ] June 9 Cash 35,000 Land 30,000 Gain on sale of land 5,000 [Land sold at a gain] ON June 10 Cash 3,000 Accounts Receivable - West Rupert Co 3,000 [Collection received from AR] 10 June 11 Prepaid Insurance 2,000 Cash 2,000 [Insurance premium paid for an year in advance ] 11 June 11 Cash 5,000 Bank Loan 5,000 [Bank loan obtained ] 12 June 12 Cash 3,000 Accounts Payable - Kathmandu Ltd 3,000 Cash paid to creditor ] 13 June 13 Rent Expense 5,000 Cash 5,000 [Rent expense paid ] 14 June 14 Cash 2,000 Sales Revenue 2,000 [Goods sold for cash ] 15 June 15 Purchases 4,000 cash 4,000 [Goods purchased on account] 16 June 16 Accounts Receivable - Purdon Co 5,000 Sales Revenue 5,000 [Goods sold on account] 17 June 17 Purchases 8,000 Accounts Receivable - Mountain Co-op 8,000 [Goods purchased on account ] 18 June 18 Cash 20,000 Accounts Receivable - East Robson 20,000 [Cash collected from debtor] 19 June 19 Accounts Payable - Everest Company 4,000 Cash 4,000 (Cash paid to creditor] 20 June 20 Cash 4000 Purchases returns 4000 21 June 30 salaries expense 10000 cash 10000 Debit Credit a Jun-30 400 Bad Debt Expense $ To Alloance for Bad Debt (1% of net sales i.e. 1% of $40,000) $ 400 b Jun-30 125 Depreciation Expense $ To Accumulated Depreciation $ 125 (Being Depreciation on equipment purchased in Jun ((15000/10)/12=$125) c Jun-30 Cost of Goods Sold $ 17,000 Purchase Return $ 4,000 To Purchase $21,000 (Being Purchase and Ppurchase return Transferred to COGS) d Jun-30 Interest Expense $ 104 To Interest payable $ 104 ( being Interest payable on Notes Payable ($15000X6%/12) and Bank Loan ($5000x7%/12) e Jun-30 Insurance Expense $ 167 To Prepaid Insurance $ 167 (Being Insurance expense for Jun - $2000/12) f Jun-30 Income Tax $ 2,500 To Income Tax Paybale ( being Income Tax expense accrued) $ 2,500