On June 1, 2014, Natalie becomes both a shareholder and chief administrator of operations of Koebels Family Bakery Ltd. After much discussion with her parents, Janet and Brian, Natalie decides not to accept the Biscuits retail chains offer to supply oatmeal chocolate chip cookies. At this point, Natalie believes that it is best to focus on providing Coffee Beans, the national coffee shop, with all of its cupcake requirements. After becoming comfortable with Coffee Beans contractual commitment and determining the extent of oven space available, Natalie and Koebels Family Bakery can then reconsider the Biscuits offer. Natalie obtains a copy of Koebels Family Bakery Ltd.s trial balance at June 30 to become familiar with the organizations accounting records.

While a number of transactions have already been recorded and posted for the month of June, there are other transactions listed below that have not yet been recorded in the accounting records:

June 2: A one-year insurance policy is purchased for $15,360. This policy represents property insurance on the buildings and equipment for the period June 1, 2014 to May 31, 2015. (The balance in the Prepaid Insurance account represents a one-year vehicle-insurance policy on a delivery truck, recorded in the Vehicles account, purchased on January 1.)

5 : Natalie attends to the receipt of advertising supplies. 5,000 brochures were purchased on account from Nakhooda Printing for $2,500. (Hint: Use the Supplies account.)

16: Koebels Family Bakery purchases baking equipment for $2,520 cash to accommodate the production of cupcakes. (Hint: Use the Equipment account.)

18 Natalies good friend is getting married in July and wants Koebels Family Bakery to provide a wedding cake and cupcakes for the wedding celebration. A $500 cash deposit is received in advance.

19 Natalie teaches a cookie-making class that was booked a number of months ago. A $100 deposit had been received in advance and is included in the Unearned Revenue account. $300 is collected in cash at the end of the class, representing the remaining balance due.

20 The first order for the preparation of 200 dozen miniature cupcakes is received from Coffee Beans. Natalie supervises the preparation of these cupcakes. She ensures that there are adequate amounts of baking ingredients on hand and that the order is appropriately filled.

23 200 dozen cupcakes are delivered to the Coffee Beans warehouse in Calgary. An invoice of $2,040 for the preparation of these cupcakes is included.

27 A $100 invoice for use of Natalies cell phone is received. The cell phone is used exclusively for Koebels Family Bakerys business. The invoice is for services provided in June and is due on July 15. (Hint: Use the Utilities Expense account.)

30 Natalie receives her first paycheque from Koebels Family Bakery, $3,250.

30 250 dozen cupcakes are delivered to the Coffee Beans warehouse in Calgary. An invoice of $2,550 for the preparation of these cupcakes is included\

. Required:

(a) Using T accounts, enter the opening balances in the general ledger as at June 30.

(b) Journalize the above transactions.

(c) Post the journal entries to the general ledger.

(d) Prepare an updated trial balance at June 30.

Trial Balance June 30, 2014 Credit Debit $ 39,004 5,900 16,250 1,875 12,000 100,000 165,000 Cash Accounts receivable Merchandise inventory Supplies Prepaid insurance Land Buildings Accumulated depreciation buildings Equipment Accumulated depreciation equipment Vehicles Accounts payable Unearned revenue Bank loan payable Mortgage payable Common shares Retained eamings Dividends Rent revenue Sales Sales returns and allowances Cost of goods sold Salaries expense Freight out Utilities expense Advertising expense Property tax expense Interest expense Income tax expense Total $137,500 42,000 14,000 52,500 3,540 100 22,500 53,200 300 66,788 30,000 6.000 638,768 5,000 102,386 287,532 18.000 12.000 9,000 5.950 5,299 33.000