Record the Elijah's Home Furnishings transactions in its general journal.  The company uses a perpetual inventory system.

June 1        Started business by issuing common stock for $100,000.
June 1        Paid $9,000 to rent store space for the months of June, July and August
June 1        Purchased $8,000 of display equipment by paying $3,500 cash and promising to pay the balance due by July 11.
June 3        Purchased $30,000 of merchandise on account, terms n/30, FOB destination.
June 9        Paid $3,500 to advertise the business for June and July.
June 17      Sold merchandise on credit for $25,000 (cost $15,000), terms 2/10, n/30, FOB shipping point.
June 23      Paid $800 for store supplies.
June 26      Paid June telephone bill of $150.
June 27      Received payment in full from the customer for sale of merchandise on June 17, less the sales discount.
June 29      Sold merchandise on credit for $15,000 (cost $8,500), terms 2/10, n/30, FOB shipping point.
June 30      Store supplies on hand were $300.
June 30      Salaries paid to employees in June were $7,500.
June 30      Display equipment has an economical life of 60 months and a salvage value of $2,000.

Required:

i)Journalize the transactions (explanations are not required).
ii)Set up T-accounts and post the journal entries to T-accounts.
iii)Close all revenue/expense accounts to the income summary and then close the income summary to the retained earnings.
iv)Prepare a multi-step income statement. All operating expenses are selling expenses.
v)Prepare a classified balance sheet.