Journalize Adjusting Journal Entries in the Adjusting General Journal and post to the Adjusting General Ledger in the same way as step one and two. Use General Ledger account numbers as per the Chart of Accounts and fill in the beginning balances before posting the June transactions. 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 ASSET ACCOUNTS 1000 TO 1999 1060 1200 1205 Subtotal 1300 1301 1350 1400 Total 1820 1825 1880 Subtotal Total GRAND TOTAL Cash Accounts receivable Allowance for doubtful accounts Accounts receivable: Net Prepaid insurance Prepaid rent Inventory Held for trading investments Current Assets Store equipment Accumulated Depreciation - Store equipment Land Property and Equipment: Net Long-Term Assets ASSETS LIABILITIES ACCOUNTS 2000 to 2999 2100 2140 2150 2160 2170 2180 2215 2220 2225 Subtotal 2380 2385 Subtotal 2400 Total Total GRAND TOTAL Accounts payable Notes payable Short-term Bank loan Corporate income taxes payable Worksafe BC payable PST payable El payable CPP payable Employee Income tax payable Payroll deductions GST collected on sales GST paid on purchases GST payable Interest payable Current Liabilities Long-Term Liabilities LIABILITIES EQUITY ACCOUNTS 3000 to 3999 3350 Total 3500 Total GRAND TOTAL Common shares Common shares Retained earnings, previous year Retained earnings SHAREHOLDER'S EQUITY REVENUE ACCOUNTS 4000 TO 4999 4210 4220 Subtotal 4300 4460 Subtotal GRAND TOTAL Sales revenue Sales returns Net Sales Dividend revenue Gain on sale assets Other Revenue REVENUE EXPENSE ACCOUNTS 5000 TO 5999 5010 5020 5030 5040 Subtotal 5620 5660 5685 5740 5750 5760 5770 5780 Subtotal 5800 Subtotal GRAND TOTAL Purchases Purchases returns Purchase discounts Cost of goods sold Cost of Goods Sold Bad debts expense Depreciation expense Insurance expense Interest expense Rent expense Salaries and benefits expense Worksafe BC expense Corporate Income tax expense General & Operating Expenses Impairment loss Other Expenses EXPENSES