PROJECT DETAILS The following is a list of transactions that have occurred during the month of June. Date Transaction June 1 Started the business with (5708x 500) in cash. June 2 Borrowed (5708 x 50) + $100,000 in the form of a note payable. June 2 Purchased land with cash for (5708 x 12). June 2 Purchased building with cash for (5708 x 150). June 3 Purchased equipment on account for (5708 x 50). June 4 Purchased a 12-month insurance policy for $24,000. June 5 Purchased $10,000 of Food and Beverage Inventory on account. June 5 Generated $12,000 in room revenue. The guests paid cash. June 6 Generated $3,000 in food and beverage revenue on account. June 10 Paid $1,500 in cash for advertising. June 15 Paid a utility bill of $2,000 in cash. June 18 Received a $5,000 cash deposit for a future banquet. June 22 Paid $1,800 in cash to repair an elevator. June 28 Paid $4,000 in wages in cash. June 30 You withdraw $500 from the business for personal use. Required: 1. Prepare Journal Entries in good form for the transactions above. 2. Post the Journal Entries into T-accounts (make sure you post them in order and ending balance) 3. Complete the trial balance in good form as of June 30, 2018 (make sure you have headers and totals). After completing Part 1 of the project, you need to fix any errors you may have had. It is your responsibility to make sure and fix any journals or T-accounts that were wrong and to make sure the trial balance you have now is correct. Also, this project is an extension of Part 1, so just like in the real world the previous transactions do not go away. You start from where that part ended and add this information. 1. The money borrowed on June 2 is an interest loan with a 10 percent interest rate and one year loan. The interest accrues each month even though interest is paid annually. Compute interest on a monthly basis not by number of days. 2. The building has no salvage value and is depreciated on a straight-line basis over 30 years. The equipment has no salvage value and is depreciated on a straight-line basis over 10 years. Compute Depreciation Expense on a daily basis 3. Insurance coverage has expired the number of days between payment and end of June. 4. There is $8,500 of food and beverage inventory left in storage at the end of the month and there was no inventory used for internal purposes (Employee meal or transfer to other department). 5. The last payday was June 28th employees were paid for working that day). Wages accrue at $200 per day. Required 1. Prepare adjusting entries in good form based on the above information. 2. Post the adjusting entries into T-accounts (make sure you have a total amount for each account and that the T-accounts have Project 1 amounts). Remember t- accounts do not go away. Any T-account from Project 1 (whether it was affected or not) needs to be included. 3. Complete an adjusted trial balance in good form as of June 30, 20X8. 4. Prepare closing entries of all required accounts. 5. Complete the Income Statement for June 20X8. 6. Complete a final Balance Sheet in good form as of June 30, 20X8. A PROJECT DETAILS The following is a list of transactions that have occurred during the month of June. Date Transaction June 1 Started the business with (5708x 500) in cash. June 2 Borrowed (5708 x 50) + $100,000 in the form of a note payable. June 2 Purchased land with cash for (5708 x 12). June 2 Purchased building with cash for (5708 x 150). June 3 Purchased equipment on account for (5708 x 50). June 4 Purchased a 12-month insurance policy for $24,000. June 5 Purchased $10,000 of Food and Beverage Inventory on account. June 5 Generated $12,000 in room revenue. The guests paid cash. June 6 Generated $3,000 in food and beverage revenue on account. June 10 Paid $1,500 in cash for advertising. June 15 Paid a utility bill of $2,000 in cash. June 18 Received a $5,000 cash deposit for a future banquet. June 22 Paid $1,800 in cash to repair an elevator. June 28 Paid $4,000 in wages in cash. June 30 You withdraw $500 from the business for personal use. Required: 1. Prepare Journal Entries in good form for the transactions above. 2. Post the Journal Entries into T-accounts (make sure you post them in order and ending balance) 3. Complete the trial balance in good form as of June 30, 2018 (make sure you have headers and totals). After completing Part 1 of the project, you need to fix any errors you may have had. It is your responsibility to make sure and fix any journals or T-accounts that were wrong and to make sure the trial balance you have now is correct. Also, this project is an extension of Part 1, so just like in the real world the previous transactions do not go away. You start from where that part ended and add this information. 1. The money borrowed on June 2 is an interest loan with a 10 percent interest rate and one year loan. The interest accrues each month even though interest is paid annually. Compute interest on a monthly basis not by number of days. 2. The building has no salvage value and is depreciated on a straight-line basis over 30 years. The equipment has no salvage value and is depreciated on a straight-line basis over 10 years. Compute Depreciation Expense on a daily basis 3. Insurance coverage has expired the number of days between payment and end of June. 4. There is $8,500 of food and beverage inventory left in storage at the end of the month and there was no inventory used for internal purposes (Employee meal or transfer to other department). 5. The last payday was June 28th employees were paid for working that day). Wages accrue at $200 per day. Required 1. Prepare adjusting entries in good form based on the above information. 2. Post the adjusting entries into T-accounts (make sure you have a total amount for each account and that the T-accounts have Project 1 amounts). Remember t- accounts do not go away. Any T-account from Project 1 (whether it was affected or not) needs to be included. 3. Complete an adjusted trial balance in good form as of June 30, 20X8. 4. Prepare closing entries of all required accounts. 5. Complete the Income Statement for June 20X8. 6. Complete a final Balance Sheet in good form as of June 30, 20X8. A