On June 1st, 2015, Jim Galla started his consulting firm, Galla & Associates Inc.The firm is a service company but also sells workbooks, manuals, and textbooks as part of its consulting services. The following transactions occurred during the company's first month. Galla & Associates, Inc. uses a perpetual inventory system. 20 ACCT 1100 On June 1, 2015, Jim Galla started his consulting firm, Galla & Associates, Inc. The firm is a service company but also sells workbooks, manuals, and textbooks as part of its consulting services. The following transactions occurred during the companys first month. Galla & Associates, Inc. uses a perpetual inventory system. June 1:Galla invested $60,000 cash, $20,000 inventory (workbooks, manuals, and textbooks), and office furniture worth $10,000 to the company in exchange for 5,000 shares of common stock. The common stock has a par value of $1. June 1: The firm paid $20,000 for leasehold improvements. June 2:The firm purchased $900 of office supplies for cash. June 2: The firm paid $3,600 cash for the premium on a 12-month life insurance policy. Coverage begins on June 1st. June 10: The firm rented office space by paying $1,600 cash for the first months ( June) rent. June 14: The firm paid $1,000 cash for two weeks salaries earned by employees. June 15: The firm sold bonds to investors to raise more capital. $10,000 par value sold at a price of 98. June 16: The firm performed consulting services on account with terms 1/10, n/30 for $8,000. June 17: The firm sold manuals and workbooks for cash amounting to $6,000. The cost of the inventory was $2,000. June 18: The firm bought $225 of professional publications on account. June 23: The firm performed consulting services of $6,000 on account with terms 1/10, net 30. June 28: The firm paid $1,000 cash for two weeks salaries earned by employees. June 28: A customer paid $5,000 in advance as a retainer for future consulting work. June 28: The firm paid commission reps who sell the textbooks for $350 cash. June 29: The firm paid $200 cash for repairs to the computers used by employees. June 30: The firm paid $600 cash for Junes telephone bill and $550 cash for the electric bill. June 30:The firm paid $1,000 cash for dividends. June 30: At month-end, the firm estimates its bad debts as 1% of the months credit sales. Galla uses the allowance method of accounting for bad debt. 1.At to set up each ledger account listed in its chart of accounts. 2. Prepare journal entries to record the transactions for June and post them to the ledger accounts. The company records prepaid and unearned items in balance sheet accounts. 3. Prepare an unadjusted trial balance as of June 30. 4. Use the following information to journalize and post adjusting entries for the month: a. One months insurance coverage has expired. b. At month-end, $300 of office supplies are still available. c. The months depreciation on the office furniture and leasehold improvements is $400. d. Employees earned $200 of unpaid and unrecorded salaries at month-end. e. The firm earned $500 of revenue paid on retainer by the customer at month-end. f. The firm accrued $750 in unpaid and unrecorded payroll taxes. g. A physical count on the inventory (books, manuals, etc.) showed $8,000 remaining at June 30. h. Interest accrued but not paid on the note payable at June 30 was $100. The amount amortized on the discount is $30. 5. Prepare an income statement and the statement of retained earnings for the month of June and balance sheet at June 30, 2015. 6. Prepare journal entries to close the temporary accounts and post these entries to the ledger. 7. Prepare a post-closing trial balance. WHAT TO DO: 1. prepare adjusting entries for June 30th. template: June 30th: office supplies expense supplies June 30th: Depreciation Expense Accumulated depreciation June 30th: Salary Expense Salaries Payable June 30th: Unearned Revenue Revenue June 30th: Payroll Tax Expense Payroll taxes Payable June 30th: Interest Expense Discount on Notes Payable Interest Payable June 30th: Cost of goods sold Inventory