PROBLEM #2 - ADJUSTING ENTRIES. (Based on the transactions above for "Shade Store, Inc.") 1. At the end of the month, Shade Store had $625 worth of supplies on hand. 2. All Equipment Shade Store has is depreciated on a 5 year Straight Line (60 month) basis. Please do the necessary Depreciation entries for the period. (lf an asset is acquired in the month, assume it has a start date the 1st of that month for depreciation purposes) 3. Provide necessary adjustments for any unearned revenue accounts. 4. Provide necessary adjustments for any prepaid expense accounts 5. The utility bill for January did not arrive at the Shade Store Inc office. Utilities are typically $325 per month. PROBLEM #1 - JOURNAL ENTRIES Dave and Tink started a Company "Shade Store, Inc.". They sell Bedframes to the public and also teach courses related to the Bedding Industry. They prepare their financials on a monthly basis. They also use a perpetual inventory system. 1/1 - Dave Contributed $9,000 in exchange for company stock in Shade Store Inc 1/2 - Tink contributed $5,000 of Equipment and $4,000 in cash in exchange for company stock in Shade Store Inc 1/3 - Shade Store paid $3,600 for a 1 year insurance policy from Farmers Insurance. The policy effective start date is 1/1/X1 1/4 - Shade Store purchases 15 units of Bed Frame Inventory from Haines Bedding on credit with the terms 2/10, N30, $1,500 1/5 - Shade Store purchases $1,700 of supplies on account from Amazon.com 1/6 - Shade Store return 3 units of inventory back to Haines Bedding that were defective. Malnes Bedding issued Shade Store a credit 1/7 - Shade Store went to Home Depot and Purchased $20,000 worth of Equipment. They had to put 20% cash down and financed the remainder of the purchase price with a 5 year Note. 1/8-Shade Store received $24,000 from Client #1 for 12 months of consulting classes that take place the last day of each month. The first class will start on 1/31/XI. 1/9- Shade Store sold 6 bedframes to Client #2 on account with the terms, 1/10, N30, $3,000 1/10-Shade Store pays $425 to Advertise in Black Brand Publication 1/11 - Shade Store pays GG Property Solutions $375 for repair services (fixing plumbing and electrical issues). 1/12 - Shade Store pays $1,450 for Office Rent 1/13 - Shade store sent the payment that was due to Haines Bedding for the bedframe inventory purchased on 1/4 1/14 - Shade Store received the full payment from Client #2 relating to the transaction on 1/9. 1/15 - Shade Store pays $675 towards the balance they owe to Amazon.com 1/16 - Shade Store sells to 3 bedframes to client #3 for a total of $1,800 cash 1/17 - Tink and Dave each receive $500 dividend from Shade Store ($1,000 total). Tink and Dave will use these funds for their personal use. 1/18 - Client #3 returns 1 of the bedframes they purchased on 1/16 back to Shade Store. Shade Store gave them a cash refund PROBLEM #1 - JOURNAL ENTRIES Dave and Tink started a Company Shade Store, Inc.". They sell Bedframes to the public and also teach courses related to the Bedding Industry. They prepare their financials on a monthly basis. They also use a perpetual inventory system. 11 - Dave Contributed $9,000 in exchange for company stock in Shade Store Inc 1/2 - Tink contributed $5,000 of Equipment and $4,000 in cash in exchange for company stock in Shade Store Inc. 1/3 - Shade Store paid $3,600 for a 1 year insurance policy from Farmers Insurance. The policy effective start date is 1/1/X1. 1/4 - Shade Store purchases 15 units of Bed Frame Inventory from Haines Bedding on credit with the terms 2/10, N30, S1,500 1/5 - Shade Store purchases $1,700 of supplies on account from Amazon.com 1/6 - Shade Store return 3 units of inventory back to Haines Bedding that were defective. Haines Bedding issued Shade Store a credit. 1/7- Shade Store went to Home Depot and Purchased $20,000 worth of Equipment. They had to put 20% cash down and financed the remainder of the purchase price with a 5 year Note. 1/8 - Shade Store received $24,000 from Client #1 for 12 months of consulting classes that take place the last day of each month. The first class will start on 1/31/XI. 1/9 - Shade Store sold 6 bedframes to Client #2 on account with the terms, 1/10, N30, 3,000 1/10- Shade Store pays $425 to Advertise in Black Brand Publication 1/11 - Shade Store pays GG Property Solutions S375 for repair services (fixing plumbing and electrical issues). 1/12 - Shade Store pays S1,450 for Office Rent. 1/13 - Shade Store sent the payment that was due to Haines Bedding for the bedframe inventory purchased on 1/4