PENPEN-NOW is a French manufacturer of fancy pens. The CO had the following simplified balance on May 31st, 2021:

PENPEN-NOW

Balance sheet Accounts (KE). May 31 21

Cash

56

2

Office supplies

60

Equipment

65

Merchandise inventory Accumulated

5

Depreciation (Equipment)

31

Accounts payable

100 47

Paid-in capital

Retained Earnings

183

183

Summarized transactions for June 2021 were as follows:

1) In the beginning of June, one of the CO's most relevant suppliers begged them for financial aid. Due to that, on the same June 1st the CO decided to make a cash loan to them for 5k. The loan repayment shall be carried out 1 year later, together with a 8% interest per annum.

2) On June 1st, the company signs a agreement with a prestigious marketing expert, paying 10k in cash. This agreement would allow the Company to receive the expert's assessment for the next 15 months.

3) In this same first day of June another CO paid to ours 1,5k as an advance rental for temporary use of part of our equipment. The rental paid to our company covers 3 months from June to August.

The CO decided to move in to a new store located near P Castellana (an excellent choice for this type of business). Therefore on June 1st the CO paid in advance 8k for rent from June to September (four months included).

5) Despite the CO already had some merchandise inventory, on June.2nd the CO decided to purchase more (4k), 75% on account (to be finally disburshed on June 27th) and 25% in cash, in order to be ready for the future.

6) June's sales were great, so the CO achieved to sell product during this month

for 100k, 75% in cash. The cost of the inventory was 30k.

7) The CO's total monthly wages for June (which has a total of 25 working days) are 25k. A payment for the period worked between June 1st and June 25th is done on this June 25th (covering 21 working days), but the payment for the remaining four working days of June will be done during the next month.

8) The depreciation of the equipment corresponding to June 2021 is 0,8k. 9) The CO shall accrue income tax expense on June's income at a 30% rate, to

be paid at the end of December.

Required:

1) Analyze each transaction, record that analysis in a journal entry, and post it to the general ledger (including any required adjustment to be done at the end of June).

2) Prepare a trial balance as of June 30th, 2021.

3) Close the accounts and prepare a classified balance sheet and a multiple-step income statement.

4) Prepare a statement of cash flows from the June's data.

5) What would you state concerning the liquidity situation of the CO at the end of June? Support your arguments in no more than four lines. In this same first day of June another CO paid to ours 1,5k as an advance rental for temporary use of part of our equipment. The rental paid to our company covers 3 months from June to August.