PB3 3 (Algo) Analyzing the Effects of Transactions Using T Accounts, Preparing an Unadjusted Trial Balance, and Determining Net Income and Net Profit Margin LO 3 1, LO 3 2, LO 3 3, LO 3 4, LO 3 5 Jessica Pothier opened FunFlatables on June 1 The company rents out moon walks and inflatable slides for parties and corporate events The company also has obtained the use of an abandoned ice rink located in a local shopping mall, where its rental products are displayed and available for casual hourly rental by mall patrons The following transactions occurred during the first month of operations Jessica contributed $52,000 cash to the company on June 1 in exchange for its common stock Purchased inflatable rides and inflation equipment on June 2, paying $22,050 cash Received $6,900 cash from casual hourly rentals at the mall on June 3 Rented rides and equipment to customers for $12,100 Received cash of $3,650 on June 4 and the rest is due from customers Received $5,150 from a large corporate customer on June 5 as a deposit on a party booking for July 4 Began to prepare for the July 4 party by purchasing and receiving various party supplies on June 6 on account for $1,580 On June 7, paid $8,150 in cash for renting the mall space this month On June 8, prepaid next months mall space rental charge of $8,150 Received $1,650 on June 9 from customers on accounts receivable Paid $2,100 for running a television ad on June 10 Paid $4,300 in wages to employees on June 30 for work done during the month Required 1 Prepare the journal entry for each of the above transactions 2 Post the transaction activity from requirement 1 to the T Accounts below All accounts begin with zero balances because this is the first month of operations 3 Prepare an unadjusted trial balance for the end of June 4 a Refer to the revenues and expenses shown on the unadjusted trial balance to calculate preliminary net income and net profit margin 4 b Determine whether the net profit margin is better or worse than the 30 0 percent earned by a close competitor Prepare an unadjusted trial balance for the end of June FUNFLATABLES Unadjusted Trial Balance Account Name Debit Credit Cash Accounts Receivable Supplies Prepaid Rent Equipment Accounts Payable Deferred Revenue Common Stock Service Revenue Rent Expense Salaries and Wages Expense Advertising Expense Total $0 $0

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PB3-3 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Unadjusted Trial Balance, and Determining Net Income and Net Profit Margin [LO 3-1, LO

PB3-3 (Algo) Analyzing the Effects of Transactions Using T-Accounts, Preparing an Unadjusted Trial Balance, and Determining Net Income and Net Profit Margin [LO 3-1, LO 3-2, LO 3-3, LO 3-4, LO 3-5]

Jessica Pothier opened FunFlatables on June 1. The company rents out moon walks and inflatable slides for parties and corporate events. The company also has obtained the use of an abandoned ice rink located in a local shopping mall, where its rental products are displayed and available for casual hourly rental by mall patrons. The following transactions occurred during the first month of operations.

Jessica contributed $52,000 cash to the company on June 1 in exchange for its common stock.
Purchased inflatable rides and inflation equipment on June 2, paying $22,050 cash.
Received $6,900 cash from casual hourly rentals at the mall on June 3.
Rented rides and equipment to customers for $12,100. Received cash of $3,650 on June 4 and the rest is due from customers.
Received $5,150 from a large corporate customer on June 5 as a deposit on a party booking for July 4.
Began to prepare for the July 4 party by purchasing and receiving various party supplies on June 6 on account for $1,580.
On June 7, paid $8,150 in cash for renting the mall space this month.
On June 8, prepaid next months mall space rental charge of $8,150.
Received $1,650 on June 9 from customers on accounts receivable.
Paid $2,100 for running a television ad on June 10.
Paid $4,300 in wages to employees on June 30 for work done during the month.

Required:

1. Prepare the journal entry for each of the above transactions.
2. Post the transaction activity from requirement 1 to the T-Accounts below. All accounts begin with zero balances because this is the first month of operations.
3. Prepare an unadjusted trial balance for the end of June.
4-a. Refer to the revenues and expenses shown on the unadjusted trial balance to calculate preliminary net income and net profit margin.
4-b. Determine whether the net profit margin is better or worse than the 30.0 percent earned by a close competitor.

Prepare an unadjusted trial balance for the end of June.

FUNFLATABLES
Unadjusted Trial Balance

Account Name	Debit	Credit
Cash
Accounts Receivable
Supplies
Prepaid Rent
Equipment
Accounts Payable
Deferred Revenue
Common Stock
Service Revenue
Rent Expense
Salaries and Wages Expense
Advertising Expense
Total	$0	$0