Page $|7$

The following additional information is available at June $30,2022$:

$($i$)$ Store Supplies on hand at June $30,2022$ amounted to $$80,000.$

$($ii$)$ Insurance of $$132,000$ was paid on April $1,2022,$ for $8-$months to November $2022$

$($iii$)$ Rent was prepaid on March $1,2022,$ for $7-$months to September $2022.$

$($iv$)$ The furniture and fixtures have an estimated useful life of $10$ years and is being

depreciated on the straight$-$line method down to a residual value of $$10,000.$

$($v$)$ The motor truck was acquired on May $1,2022,$ and is being depreciated

over $5$ years on the double$-$declining balance method of depreciation, down to

a residue of $$10,000$

$($vi$)$ Salaries earned by employees not yet paid amounted to $$108,000$ at June $30,2022.$

$($vii$)$ Accrued interest expense as of June $30,2022,$ $$24,000.$

$($viii$)$ On June $30,2022,$ $$85,000$ of the previously unearned sales revenue had been earned.

$($ix$)$ The aging of the Accounts Receivable schedule at June $30,2022$ indicated that the

Allowance for Bad Debts should be $$70,000.$

$($x$)$ After making all other adjustments, a physical count of inventory was done, which

reveals that there was $$1,100,000$ worth of inventory on hand at June $30,2022$

Other data:

$($xi$)$ The business is expected to make principal payments totalling $$250,000$ towards the

loan during the fiscal year to June $30,2023$

Required:$$a$)$ Prepare the necessary adjusting journal entries on June $30,2022.[$Narrations are not required$]$b$)$ Prepare the Adjusted Trial balance at June $30,2022.$c$)$ Prepare the company$$s multiple$-$step income statement for the period ending June $30,2022$d$)$ Prepare the company$$s statement of owner$$s equity at June $30,2022$e$)$ Prepare the company$$s classified balance sheet at June $30,2022$