Leon Jackson is ecstatic! First National Bank just approved a loan for Leon to start a Web site design and maintenance business called Webworks. He is now ready to purchase his needed equipment, hire his administrative help, and begin designing sites. During June, his first month of business, the following occur:

a. Webworks signs a note at the bank and is given $10,000 cash.

b. Leon deposits $2,000 of his own money into Webworkss checking account.

c. Webworks purchases a new computer and additional equipment for $3,000.

d. Webworks purchases supplies worth $200 on account that should last Webworks two months.

e. Webworks hires Nancy Po to assist with administrative tasks. She will charge $100 per Web site for her assistance.

f. Webworks begins working on his first two Web sites, one for Juan Sanchez, a friend of his dads and the other for Pauline Smith, a local businesswoman.

g. Webworks completes the site for Mr. Sanchez and sends him a bill for $600.

h. Webworks completes the site for Ms. Smith and sends her a bill for $450.

i. Webworks collects $600 in cash from Mr. Sanchez.

j. Webworks pays Nancy $100 for her work on Mr. Sanchezs Web site.

k. Webworks receives $500 in advance to work on a Web site for a local restaurant. Work on the site will not begin until July.

l. Webworks pays taxes of $200 in cash.

Required:

A. Prepare journal entries for the above events if needed.

B. Post the journal entries to T-accounts.

C. Prepare an unadjusted trial balance for Webworks for June.

D. Prepare adjusting entries for the following and post them to your T-accounts, adding any additional T-accounts as necessary.

m. Webworks owes Nancy $100 for her work on Ms. Smiths Web site.

n. Leons parents let him know that Webworks owes $80 toward the electricity bill. Webworks will pay them in July.

o. Webworks only used half of the supplies purchased in (d) above.

E. Prepare an adjusted trial balance for Webworks for June.