Mary Jane opened her new retail business of selling scented candles called Jasmine Inc., on April 1, 2020 with a cash investment of $20,000. Jasmine Inc. follows the fiscal year starting April 1 and adjusts monthly. The following activities/transactions occurred during the month of April 2020: April 1 Mary Jane invested $20,000 cash to start the business. April 1 Mary Jane paid $12,000 cash for 6-months' rent extending from April 1 till September 30, 2020. April 2 Paid $1,800 cash for a 2-year insurance policy, effective April 1, 2020 April 2 Hired 2 salespeople for $450 each one, payable on a biweekly basis every Saturday for the 12 days' work, Monday Saturday April 3 Paid for furniture through a bank note from NBAD Bank for the amount of $60,000. The note is for 5 years and charges 6% interest. (Consider the partial month as a full month), April 4 Jasmine bought 300 candles from Tulip Co for $8 each FOB Shipping point, terms 3/10-n/30. The responsible party paid $ 60 transportation fees. Aprils Bought $250 worth of supplies from Malik's Bookshop by paying cash. April 10 Sold 120 candles to Forever Bliss Wedding Planners for $13 each, FOB Destination terms 1/10-1/60. The responsible party paid $10 shipment fees. The cost of each candle was 58. April 12 Sold 3 candles to a walk-in customer for a total of $30 cash The cost of each candle was $8. April 13 Mary Jane returned 4 deformed Candles to Tulip Co. (Exclude freight charges in your calculation) April 14 Mary Jane paid Tulip Co what it owes April 17 Mary Jane withdrew $ 700 for her personal use April 17 Mary Jane Paid S 900 cash to its 2 employees April 18 Mary Jane paid $100 for advertising on Facebook April 18 Forever Bliss returned 5 candles as they were not ordered (Exclude Freight charges in your calculation) April 19 Forever Bliss paid in full. April 19 April 23 April 26 April 26 Forever Bliss paid in Full. Sold 5 candles for $14 each for cash. The cost of each candle was $8. Mary Jane purchased a used delivery Truck for $6,000 Cash Bought 200 candles from Tulip Co for $7 each, FOB Destination terms 3/10-n/30. The responsible party paid $15 transportation fee Sold 180 candles for $10 each for a private dinner party terms 1/10- n/30, FOB shipping point. The cost of 1 candle is $7. The responsible party paid $20 for the shipment. Mary Jane invested another $7,000 cash in the business. April 28 April 30 A. Journalize the entries on the General Journal of Jasmine Inc. It uses the Perpetual Inventory System. (31%) . Consider the following additional information regarding the adjustments necessary at the end of the month The Furniture is expected to be used for 10 years with no Salvage Value. The Annual depreciation is $6,000. April 30, 2020 is a Thursday. The physical inventory checkup revealed the actual ending inventory is $1500. The supplies on hand at April 30 was worth $100 only. The truck will be depreciated $70 a month. B. Journalize the adjusting entries on April 30, 2020. There are a total of 8 adjusting entries (16%) . C. Prepare the necessary Closing entries on April 30, 2020. (10%) D. Prepare Multiple Step Income Statement for the month ended April 30, 2020. (20%) E. Prepare the Classified Balance Sheet at April 30, 2020. (23%) A B I - I ES Xx* S *** U
