PROBLEM 3-13, PAGE 133 (ADAPTED) NEVERANERROR, INC. PART 1 Use the JAN 1 BTB (BEGINNING TRIAL BALANCE) to fill in the 1-Jan BB for each GENERAL LEDGER account. PART 2 Prepare GENERAL JOURNAL ENTRIES (GJEs) for the JUNE TRANSACTIONS. Use the accompanying Excel spreadsheet labeled General Journal. JUNE TRANSACTIONS Jun 2: Received contributions of $10,000 cash from each of the three owners. Jun 5: Purchased a computer system for a total of $12,000. Paid cash of $2,500 and the balance is due in 60 days. Jun 8: Borrowed $20,000 on a 2-year promissory note. Jun 15: Billed $12,350 to clients for services performed during the first half of June. The clients have 10 days to pay Jun 17: Paid a $900 bill to the newspaper for advertisements that already ran. Jun 23: Collected from clients billed on June 15. Jun 28: Paid $2,700 on bills for gas, electricity and water that was already consumed. Jun 29: Received the landlord's bill for $2,200 due on July 10. The bill relates to the occupation of office space during June. Jun 30: Paid salaries and wages totaling $5,670 for work performed during June. Jun 30: Billed $18,400 to clients for services performed during the second half of June. Jun 30: Declared and paid dividends of $6,000. PART 3 Post the GENERAL JOURNAL ENTRIES (GJEs) to the GENERAL LEDGER accounts. PART 4 Calculate the UNADJUSTED BALANCE (UAB) for each GENERAL LEDGER account. PART 5 Prepare an UNADJUSTED TRIAL BALANCE (UATB) for June 30. PART 6 Use the information below to prepare the June 30 ADJUSTING JOURNAL ENTRIES (AJES). AJE 1 June DEPRECIATION EXPENSE is for the COMPUTER SYSTEM is $200. AJE 2 Accrued INTEREST EXPENSE for June is $167. Accrued interest payments are due every May 1 and November 1, until the principle is repaid. AJE 3 INCOME TAX EXPENSE is 30% of the PRE-TAX INCOME amount. FINANCIAL ACCOUNTING - THE IMPACT ON DECISION MAKERS; Edition 10e; Porter & Norten PART 7 Post the ADJUSTING JOURNAL ENTRIES (AJES) to the GENERAL LEDGER accounts. PART 8 Calculate the ADJUSTED BALANCE (AB) for each GENERAL LEDGER account. PART 9 Prepare an ADJUSTED TRIAL BALANCE (ATB) for June 30. PART 10 Use the ADJUSTED BALANCES to prepare a multi-step INCOME STATEMENT for the month ending June 30, 20XX. NEVERANERROR, INC. INCOME STATEMENT FOR MONTH ENDING JUNE 30, 20XX PART 11 Prepare the CLOSING JOURNAL ENTRY (CJE) for the month ending June 30, 20XX. PART 12 Post the CLOSING JOURNAL ENTRY (CJE) to the GENERAL LEDGER accounts. PART 13 Calculate the POST CLOSING BALANCE (PCB) for each GENERAL LEDGER account. PART 14 Prepare a POST CLOSING TRIAL BALANCE (PCTB) for June 30. PART 15 Prepare a STATEMENT OF RETAINED EARNINGS for the month ending June 30, 20XX. Note that June is the first month of OPERATIONS. NEVERANERROR, INC. STATEMENT OF RETAINED EARNINGS FOR MONTH ENDING JUNE 30, 20XX PART 16 Prepare a STATEMENT OF CASH FLOWS using the direct method. NEVERANERROR, INC. STATEMENT OF CASH FLOWS FOR MONTH ENDING JUNE 30, 20XX PART 17 Prepare a classified BALANCE SHEET for June 30, 20XX. NEVERANERROR, INC. BALANCE SHEET JUNE 30, 20XX @ 23:59:59 PROBLEM 3-13, PAGE 133 (ADAPTED) NEVERANERROR, INC. PART 1 Use the JAN 1 BTB (BEGINNING TRIAL BALANCE) to fill in the 1-Jan BB for each GENERAL LEDGER account. PART 2 Prepare GENERAL JOURNAL ENTRIES (GJEs) for the JUNE TRANSACTIONS. Use the accompanying Excel spreadsheet labeled General Journal. JUNE TRANSACTIONS Jun 2: Received contributions of $10,000 cash from each of the three owners. Jun 5: Purchased a computer system for a total of $12,000. Paid cash of $2,500 and the balance is due in 60 days. Jun 8: Borrowed $20,000 on a 2-year promissory note. Jun 15: Billed $12,350 to clients for services performed during the first half of June. The clients have 10 days to pay Jun 17: Paid a $900 bill to the newspaper for advertisements that already ran. Jun 23: Collected from clients billed on June 15. Jun 28: Paid $2,700 on bills for gas, electricity and water that was already consumed. Jun 29: Received the landlord's bill for $2,200 due on July 10. The bill relates to the occupation of office space during June. Jun 30: Paid salaries and wages totaling $5,670 for work performed during June. Jun 30: Billed $18,400 to clients for services performed during the second half of June. Jun 30: Declared and paid dividends of $6,000. PART 3 Post the GENERAL JOURNAL ENTRIES (GJEs) to the GENERAL LEDGER accounts. PART 4 Calculate the UNADJUSTED BALANCE (UAB) for each GENERAL LEDGER account. PART 5 Prepare an UNADJUSTED TRIAL BALANCE (UATB) for June 30. PART 6 Use the information below to prepare the June 30 ADJUSTING JOURNAL ENTRIES (AJES). AJE 1 June DEPRECIATION EXPENSE is for the COMPUTER SYSTEM is $200. AJE 2 Accrued INTEREST EXPENSE for June is $167. Accrued interest payments are due every May 1 and November 1, until the principle is repaid. AJE 3 INCOME TAX EXPENSE is 30% of the PRE-TAX INCOME amount. FINANCIAL ACCOUNTING - THE IMPACT ON DECISION MAKERS; Edition 10e; Porter & Norten PART 7 Post the ADJUSTING JOURNAL ENTRIES (AJES) to the GENERAL LEDGER accounts. PART 8 Calculate the ADJUSTED BALANCE (AB) for each GENERAL LEDGER account. PART 9 Prepare an ADJUSTED TRIAL BALANCE (ATB) for June 30. PART 10 Use the ADJUSTED BALANCES to prepare a multi-step INCOME STATEMENT for the month ending June 30, 20XX. NEVERANERROR, INC. INCOME STATEMENT FOR MONTH ENDING JUNE 30, 20XX PART 11 Prepare the CLOSING JOURNAL ENTRY (CJE) for the month ending June 30, 20XX. PART 12 Post the CLOSING JOURNAL ENTRY (CJE) to the GENERAL LEDGER accounts. PART 13 Calculate the POST CLOSING BALANCE (PCB) for each GENERAL LEDGER account. PART 14 Prepare a POST CLOSING TRIAL BALANCE (PCTB) for June 30. PART 15 Prepare a STATEMENT OF RETAINED EARNINGS for the month ending June 30, 20XX. Note that June is the first month of OPERATIONS. NEVERANERROR, INC. STATEMENT OF RETAINED EARNINGS FOR MONTH ENDING JUNE 30, 20XX PART 16 Prepare a STATEMENT OF CASH FLOWS using the direct method. NEVERANERROR, INC. STATEMENT OF CASH FLOWS FOR MONTH ENDING JUNE 30, 20XX PART 17 Prepare a classified BALANCE SHEET for June 30, 20XX. NEVERANERROR, INC. BALANCE SHEET JUNE 30, 20XX @ 23:59:59