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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

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 30,20xx (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.
Lets 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 30,20XX:
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 2,20xx.
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 months 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 20xx.
4. Complete a final Balance Sheet as of June 30,20xx. This includes subtotals and totals for all categories
we discussed in class.
5. Prepare a post-closing trial balance.

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