Part $1$

The following is a list of transactions that have occurred during the month of June.

Date Transaction

June $1$ Invested cash into the company for stock $($ID x $500)$

June $2$ Borrowed $($ID x $50)+$ $$100,000$ in the form of a note payable.

June $2$ Purchased land with cash for $($ID x $12).$

June $2$ Purchased building with cash for $($ID x $150).$

June $3$ Purchased equipment on account for $($ID x $50).$

June $4$ Purchased a $12-$month insurance policy for $$24,000.$

June $5$ Purchased $$10,000$ of Inventory on account.

June $5$ Generated $$20,000$ in revenues. This was paid in cash.

June $6$ Generated $$10,000$ in revenues on account.

June $10$ Paid $$1,500$ in cash for advertising.

June $15$ Paid a utility bill of $$2,000$ in cash.

June $18$ Received a $$500$ cash deposit for a future services.

June $22$ Paid $$1,800$ in cash to repair an elevator.

June $28$ Paid $$4,000$ in wages in cash.

June $30$ $$500$ in dividends were paid in cash.

Required:

$1.$ Prepare journal entries in good form for the transactions above.

$2.$ Post the journal entries into T$-$accounts $($make sure you have a total amount for each account$).$ There should

be no hardcoded numbers on the T$-$accounts, only formulas.

$3.$ Complete a trial balance in good form as of June $30,20$xx $($make sure you have headers and totals$).$ There

should be no hardcoded numbers on the trial balance, only formulas.

HELPFUL HINTS

This is a real$-$world financial accounting experience. It is intended to integrate the material learned in class.

Make sure they are legible and presented in good order.

Let$$s say the ID is $5634$

Part $2$

This project is an extension of Part $1,$ so just like in the real world the previous transactions do not go away.

Review your transaction analysis, journal entries, T$-$Account postings and Trial Balance for accuracy. You start

from where that part ended and add this information.

The following transactions are adjusting entries that need to be booked as of June $30,20$XX:

$1.$ The money borrowed on June $2$ is an interest$-$only loan with a $10$ percent interest rate. The interest accrues

each month even though it is only paid quarterly with the first payment not due until September $2,20$xx$.$

Compute interest on a monthly basis not by number of days.

$2.$ The building has no salvage value and is depreciated on a straight$-$line basis over $30$ years. The equipment

has no salvage value and is depreciated on a straight$-$line basis over $10$ years.

$3.$ One month of insurance coverage has expired. Assume an entire month$$s worth of insurance has expired

not only the number of days between payment and end of June.

$4.$ There is $$8,500$ of inventory left in storage at the end of the month and there was no inventory used for

internal purposes.

$5.$ The last payday was June $28$ th $($employees were paid for working that day$).$ Wages accrue at $$200$ per day.

Required:

$1.$ Prepare adjusting entries in good form based on the above information. Create separate adjusting journal

entries from your part $1$ journal entries.

$2.$ Post the adjusting journal entries into T$-$accounts $($make sure you have a total amount for each account

and that the T$-$accounts have Part $1$ and Part $2$ amounts$).$ Remember t$-$accounts do not go away. Any T$-$

account from Part $1$ whether it was affected or not needs to be included.

$3.$ Complete an adjusted trial balance.

Good luck

Part $3$

$1.$ Prepare closing journal entries to $$close out$$ all required accounts. $($Part $1$ & $2$ entries are not required

and should not be turned in$)$

$2.$ Post the journal entries into T$-$accounts $($make sure you have a total amount for each account$).$

Remember t$-$accounts do not go away. Any T$-$account from Part $1$ & $2$ whether it was affected or not

needs to be included.

$3.$ Complete the Income Statement for June $20$xx$.$

$4.$ Complete a final Balance Sheet as of June $30,20$xx$.$ This includes subtotals and totals for all categories

we discussed in class.

$5.$ Prepare a post$-$closing trial balance.