Need help on questions 3 and 4 please!

Accounting Cycle Review Project C. Brown recently expanded to open a 2nd fly fishing shop, CB's Fly Shop2. In order to finance the 2nd shop, C. Brown contributed $20,000 and raised another $50,000 from friends and family. With the additional cash, he is able to get his 2nd fly shop open and operational in June 2015. He is too busy with it being prime fishing season to do the accounting and has hired you to help him prepare financials for his 2nd shop. Required: Complete the following Accounting Cycle steps for the month of June. 1) Record all necessary journal entries for CB's Fly Shop for the month ended June 30, 2015 (A list of transactions and additional information re: adjusting entries is provided on pages 2 and 3). 2) Post the transactions to T-Accounts (a chart of accounts is given on page 2) 3) Prepare a trial balance as of June 30, 2015. 4) Prepare (in good form) a multi-step income statement (see pg 76 for an example) for the month of June. Assume a 35% tax rate. 5) Prepare (in good form) a classified balance sheet as of June 30, 2015. (See pg 77) 6) Record all necessary closing entries Additional Information: You are allowed to work on this project in pairs (just make sure you include both of your names when you submit. I highly encourage you to use excel and link your journal entries, T-accounts, and financial statements. This will allow you to easily make changes. Your journal entries and financial statements must be typed. T-accounts can be done by hand and scanned in. Chart of Accounts: No. Account Cash Accounts Receivable 403 Account Guiding Revenue Store Sales No. 101 106 404 Fly Rod Inventory Supplies for guides Prepaid Insurance Prepaid Rent 119 125 128 131 153 Trucks 502 613 615 623 633 637 638 155 COGS Depreciation Expense - Trucks Depreciation Expense - Rafts Wages Expense Interest Expense Insurance Expense Rent Expense Supplies Expense Advertising Expense Telephone Expense Repairs Expense Income Summary Rafts Accumulated Depreciation - Accumulated Depreciation- Accounts Payable Wages Payable Interest Payable Unearned Guiding Revenue Notes Payable Common Stock, $5 par value Retained Earnings Dividends 652 163 165 201 210 212 236 655 677 684 901 240 307 318 319 The following is a list of transactions for CB's Fly Shop in June. If no entry is required - write "No Entry in the General Journal. June 1 C. Brown, his family, and friends all invest $70.000 cash in the corporation, in exchange for 14,000 shares of common stock ($5 par value) Additic 1 Received and paid the bill for a two-year premium for insurance, $12,240. 1 Borrowed $25,000 for Alpine Bank, promising to pay back the principal on June 1, 2021 and interest (6%) monthly on July 1. Using the money borrowed from Alpine Bank, Brown bought two rafts, $6,000 each (total $12,000) and a truck, valued at $12,500 paying cash for all three. 2 3 Rented a shop and paid rent for the first 3 months, $3,600. 3 Signed a contract to take the staff at CMC on 2 days worth of float trips over the summer. CMC paid $5,000 up-front for the float trips. Bought 6 fly rods, on account from Winston FlyRod Company for $1200. (Debit Inventory - fly rods). Bought 1200 flies on account from FlyDeals, $300 (Debit Supplies). June 4 5 Hired two employees - one head guide and a shop manager. The head guide will be paid $1000/wk and the shop manager makes $15/hr. 6 Took a client on a guided float trip down the Roaring Fork and received $500 for the trip. Sold two fly rods to a customers for $1600 cash. (Note: CB FlyShop uses a perpetual inventory system). 10 Took a group of 5 clients on guided fishing trips, float trip income for these trips totaled $2,500 which was paid in cash. 15 Received and paid for a bill for advertising in the Post Independent - $60. 17 Paid the bill from Winston FlyRod company. 18 Took one of the rafts to Alpine Rafting to fix a tear in the floor. Alpine made minor repairs on the raft and sent CB FlyShop an invoice for $200. (Hint: Debit repair expense). 19 Paid the head guide for his first two weeks of work. 19 The shop manager has worked 30 hours since starting and was paid on June 19. 22 A client purchases a fly rod ($800) and goes on a float trip. The client doesn't have any cash on hand but promises to pay the shop for both the trip ($450) and the fly rod next month. 24 Took half of the CMC employees on the first float trip. 27 Received and paid the telephone bill, $150. 28 Paid Alpine Rafting on account, $200. 29 Paid investors $200 in dividends. Additional Information: a) Record the adjusting entry for insurance expense. b) The truck is expected to last 5 years and have a salvage value of $1500. (The Fly Shop uses Straight-line depreciation) c) The rafts are expected to have a useful life of 3 years and have no salvage value. d) The head guide and the shop manager work a 7 day work week starting on Saturdays and are paid every two weeks on a Friday. The last day of the month falls on a TUESDAY. The shop manager worked 35 hours from June 19 to the end of the month. e) Record the adjusting entry for rent expense. f) An inventory of flies (Supplies) showed $150 on hand at month end. g) Record the interest payable for the first month