June 2 - Sold merchandise to East Robson Inc. at invoice price of $20,000 on credit; Invoice No. 1001 June 3 - Received merchandise from Everest Company at invoice cost of $4,000 on credit; Purchase Order No. 5001. June 4 - Sold merchandise to West Rupert Co. for $3,000 on credit terms; Invoice No. 1002 June 5 - Received merchandise from Katmandu Ltd. at an invoice cost of $3,000 on credit; Purchase Order No. 5002 June 6 - Sold merchandise for cash to Tabor Equipment for $10,000 June 7 - Received merchandise from Colton Manufacturing Company at a cost of $2,000; paid cash. June 8 - Purchased a capital asset (store equipment) from MerchCo at a cost of $15,000. The note is 90-day, 6 percent, interest-bearing note payable for the full amount owed. Assume date was June 1, 2019 for interest and depreciation calculations (at adjustments stage) June 9 - Sold a tract of vacant land for $35,000 which originally cost $30,000. Collected sale amount in cash. June 10- Collected the account receivable from West Rupert Co.; Invoice No. 1002 June 11- Paid $2,000 for a one-year insurance policy on property, plant and equipment starting June 1. June 11- Obtained a $5,000 bank loan; signed a one-year, 7 percent, interest-bearing bank loan agreement. Assume date was June 1 for interest calculation (at adjustments stage) June 12- Paid the account payable to Katmandu Ltd. Purchase Order No. 5002 June 13- Paid monthly rent in cash $5,000. June 14- Sold merchandise for cash, $2,000. June 15- Purchased merchandise from Logan Ltd. for cash, $4,000. INV 10021 June 16- Sold merchandise on credit to Purdon Co. for $5,000; Invoice No. 1003 June 17- Received merchandise on credit from Mountain Co-Op at an invoice cost of $8,000 Purchase Order No. 5003 June 18- Collected the account receivable from East Robson Inc. Invoice No. 1001 June 19- Paid the account payable to Everest Company. Purchase Order No. 5001 6 June 20- Returned merchandise purchased on account from Logan Ltd.; amount $4,000 invoice 10021. June 30- Paid monthly salaries: gross earnings $10,000. Adjusting Journal Entries: Gear UP Inc. has established the following rules for adjusting entries at month end. Record June 30ths entries for the following: a) Average loss rate of bad debts is 1% of the months net sales; account grouping as per chart of accounts. Record Junes bad debt estimate. b) Store equipment is depreciated on a straight-line basis. All equipment is estimated to have a 10-year useful life, with no residual value. Record one months depreciation for GUs equipment. Equipment purchased in June depreciated for the entire month. c) GU records purchases, returns, and discounts to their respective expense account during the year; GU then allocates to Inventory at period end according to what the ending inventory count shows. Purchases (Acct.5010), Purchases Returns (Acct.5020) and Purchase Discounts (Acct.5030) accounts must be nil ($0) at the end of the period; they are cleared to Cost Of Goods Sold and Inventory accounts. On June 30, 2019, $45,000 of inventory remained on hand, to be sold in future. d) Interest on Notes Payable and Bank Loans accrue each month. Round to the nearest dollar, and record one full month of interest to be paid. e) Account for the Insurance expense, if applicable. f) Unrecorded corporate income tax expense for June is $2,500. Post the accrual entry.

need help with adjusting entries

financial statement.docx - Microsoft Word X Home Incert Page Layout References Maling Ravi View 701 Anal Bold - 12 A. 12 EFF 2. 41 , , c I Normal 1 No Spoong Heading Heading a B 11 the XX A. BE >A cony Paste Format Panter Clipboard Title Subtitle subtle Emo.. Emphasis ntense im Strong Quote AN Find - Replace change Styles Select 19 Editing Font Tarsarah Styles Gear Up (GU) Inc. Statement of Financial Position As at May 31, 2019 ASSETS Current Assets Cash $ 2,000 Held-for-trading investments 3,000 Accounts Receivable 2,000 Inventory 50,000 Total Current Assets $ 57,000 Long Term Assets Store equipment $ 10,000 Less: Accum. depreciation, equipment 2,000 Property and Equipment $ 8,000 Land 30,000 Total Long Term Assets $38,000 TOTAL ASSETS $95,000 LIABILITIES & SHAREHOLDERS' EQUITY Current Llabilities Accounts payable $ 6,000 Notes Payable 30,000 Total Current Liabilities $36,000 Total liabilities $36,000 Shareholder's Equity Common Shares $20,000 Retained Earnings 39,000 Total Shareholder's Equity $59,000 TOTAL LIABILITIES & SHAREHOLDER'S EQUITY $95,000 Page 1 oft Word 07 English unted States Type here to search o HC1304 ENG 11:27 PM IN 11/20/2020 23 9291