PROBLEM #$1$

The Board Shop, owned by Andrew John, sells skateboards in the summer and snowboards in the winter. The shop has an August $31$ fiscal year$-$end and uses a perpetual inventory system and the earnings approach. On August $1,2024,$ the company had the following balances in its general ledger:

During August, the last month of the fiscal year, the company had the following transactions:

Aug.

$1$ Paid $$1,650$ for August$$s rent.

$2$ Paid $$6,500$ of the amount included in Accounts Payable.

$4$ Sold merchandise costing $$7,900$ for $$12,260$ cash.

$5$ Purchased merchandise on account from Orange Line Co$.,$ n$/30,$ FOB shipping point, for $$24,500.$

$5$ Paid freight charges of $$500$ on merchandise purchased from Orange Line Co$.$

$8$ Purchased supplies on account for $$345.$

$9$ Refunded a customer $$425$ cash for returned merchandise. The merchandise had cost $$265$ and was returned to inventory.

$10$ Sold merchandise on account to Spider Company for $$15,750,$ terms $2/10,$ n$/30,$ FOB shipping point. The merchandise had a cost of $$9,765.$

$11$ Paid Orange Line Co$.$ for half of the merchandise purchased on August $5.$

$12$ Spider Company returned $$750$ of the merchandise it purchased. Board Shop issued Spider a credit to its account. The merchandise had a cost of $$465$ and was returned to inventory.

$15$ Paid salaries, $$3,100.$

$19$ Spider Company paid the amount owing.

$21$ Purchased $$9,900$ of merchandise from Rainbow Option Co$.$ on account, terms $2/10,$ n$/30,$ FOB destination.

$23$ Returned $$800$ of the merchandise to Rainbow Option Co$.$ and received a credit on the account.

$24$ Received $$525$ cash in advance from customers for merchandise to be delivered in September.

$30$ Paid salaries, $$3,100.$

$30$ Paid Rainbow Option Co$.$ the amount owing.

$31$ Andrew John withdrew $$4,800$ cash.

Adjustment and additional data:

$1.$ A count of supplies on August $31$ shows $$755$ on hand.

$2.$ The equipment has an estimated eight$-$year useful life. Remember that adjusting entries are done annually, not monthly.

$3.$ Of the notes payable, $$6,000$ must be paid on September $1$ each year.

$4.$ An analysis of the Unearned Revenue account shows that $$3,750$ has been earned by August $31.$ A corresponding entry of $$2,325$ for Cost of Goods Sold will also need to be recorded for these sales.

$5.$ Interest accrued on the note payable to August $31$ was $$175.$

$6.$ A count of the merchandise inventory on August $31$ shows $$76,560$ of inventory on hand.

Instructions

record all august transactions please