Journalize the June 30 adjusting entries. Explainations optional (do not post) (17 points)
Adjusting entries for the month of June: Jun 30 Accrued interest on Bank Loan in the amount of $300 Jun 30 Record monthly depreciation in the amount of $2,800 Jun 30 Accrued salaries expense in the amount of $4,300 Jun 30 Used one month's worth of insurance (see June 10th's transaction) ) Jun 30 A physical count of office supplies showed $3,200 Jun 30 A physical count of inventory showed $11,050 e) Partial Worksheet from Part 1 d) Journalizing Journal Date Page 2 Credit PR Debit Account Title & Explanation Adjusting Entries 30-Jun Sports RUS Trial Balances June 30, 2019 Unadjusted Trial Balance Adjustments Adjusted Trial Balance DR CR DR DR CR $55,000 $12,500 $11,650 $6,700 $11,500 $106.000 CR $0 $o $0 SO SO SO Account Titles Cash Accounts Receivable Prepaid Insurance Office Supplies Merchandise Inventory Property, Plant & Equipment - Accumulated Depreciation Accounts Payable Unearned Revenue Salaries Payable Interest Payable Bank Loan Common Stock Pomatos Retained Earnings abends Dividends Service Revenue Sales Revenue ICOGS Maintenance Expense Partenance Rent Expense Telephone Expense $0 $23,000 SO $32,750 SO $4,200 $0 $0 SO SO $0 $21,000 $0 $70,000 $0 $35,500 $2,500 $o $0 $24,250 $0 $13,500 $8,750 $o $o SO $2,900 $o so $650 $o so $5,750 SO so 2.134 $o $o $300 SO $0 $0 SO $0 $224,200 $224,200 Salaries Expense Office Supplies Expense Interest Expense Insurance Expense Depreciation Expense Sub-total 17 points Total $0 $224,200 $224,200 Check figure: $0 ######## 15 Points Case Study Full Accounting Cycle Melissa Days and Kelly Harbor formed the Corporation Sports R Us. They sell sporting goods and give lessons. They have hired you to update their transactions for the business. They have provided you with the opening balances and a list of transactions for the month of June. The company's Chart of Accounts is also included as shown below. The opening balances for the month of June are as follows: Sports R Us Balance Sheet As at May 31, 2019 Assets Liabilities Cash $37,000 Accounts Payable $9,800 Accounts Receivable 12,500 Unearned Revenue 4,200 Prepaid Insurance 9,250 Bank Loan 25,000 Office Supplies 5,000 Merchandise Inventory 8,750 Total Liabilities 39,000 Property, Plant & Equipment 95,000 Stockholder's Equity Accumulated Depreciation (23,000) Common Stock 70,000 Retained Earnings 35,500 Total Stockholder's Equity 105,500 Total Assets $144,500 Total Liabilities & Owners' Equity $144,500 Jun 1 Jun 12 Transactions for the month of June: Purchased sports equipment on account from Modern Furniture (to be recorded i Jun 7 Received cash from customers for various sports camps completed this week Jun 8 Paid rent for the month of June Jun 10 Prepaid insurance for one year Paid utility bill from May Jun 15 Paid bi-weekly wages to employees Paid interest on bank loan Jun 20 Received telephone bill to be paid next month Purchased office supplies from Office Barn on account Jun 25 Made principal payment on bank loan Paid cash dividends to stockholder's Jun 27 Purchased Inventory for the store on account from Sports World Record monthly cash sales for the store Jun 30 Record COGS for monthly sales Jun 15 $11,000 $24,250 $2,900 $2,400 $1,900 $5,750 $300 $650 $1,700 $4,000 $2,500 $11,500 $13,500 $8,750 Jun 22 Jun 26 Jun 30 Account # 400 410 The Chart of Accounts (GL no.) is shown below: Account Description Account # ASSETS Cash 101 Accounts Receivable 105 Prepaid Insurance 110 Office Supplies 115 Merchandise Inventory 120 Property, Plant & Equipment 130 Accumulated Depreciation 140 LIABILITIES Accounts Payable 200 Salaries Payable 205 Interest Payable 210 Unearned Revenue 215 Bank Loan 220 Account Description REVENUE Service Revenue Sales Revenue EXPENSES Advertising Expense COGS Insurance Expense Maintenance Expense Rent Expense Telephone Expense Salaries Expense Office Supplies Expense Depreciation Expense Interest Expense 500 505 510 515 520 530 540 550 555 560 STOCKHOLDER'S EQUITY Common Stock Retained Earnings Dividends Income Summary 300 310 315 320
