Service Revenue per hour = $40

Sales Revenue per unit = $10

Purchase Price per unit = $2

Part 2 - General Journal - Record the following journal entries in the General Journal. Bison Corporation uses a perpetual inventory system and values inventory with the FIFO method. Bison Corporation offers a sales discount of 2/10, net 30 to all customers who purchase on account. Trans. Date May 1 Description Sell 60,000 shares of $1 par common stock for $60,000 to obtain the funds necessary to start your business. Borrow $25,000 from the local bank and sign a note promising to repay the full amount of the debt in 5 years. The interest rate is 10%. May 1 May 1 Issue 1,500 shares of $2 par value preferred stock at $25/share. May 1 Purchase equipment necessary for business operations for $15,000. May 1 Pay one year of rent in advance, $12,000 ($1,000 per month.) May 3 Purchase supplies on account, $800. May 3 Purchase 200 units of inventory with cash. May 6 Provide 40 hours of services to customers for cash (calculate using your hourly service rate). May 10 Sell 90 units of inventory to a customer on account. May 12 Sell 50 units of inventory to a customer on account. May 15 Purchase an additional 300 units of inventory on account. 12 May 20 The customer who purchased product on May 12th pays the full amount due. May 23 Receive cash in advance for 20 hours of services to be completed in the future. Sell 200 units of inventory to a customer who signs a 6-month promissory note at 10% interest for the balance due. May 31 May 31 Pay employee salaries, $1,500. May 31 Pay cash dividends to shareholders, $700. Part 3 - General Ledger - Post the journal entries into the General Ledger. Part 4 - Trial Balance - Prepare a Trial Balance from the information in the General Ledger. Part 2 cont. - Adjusting journal Entries - Record the following adjusting entries in the general journal. Adj-1 May 31 Record the portion of the Prepaid Rent used in May. Adj-2 May 31 The company has $250 of supplies left at month end. Adj-3 May 31 Record one month of depreciation on the equipment. The equipment has a useful life of 10 years and no salvage value. Adj-4 May 31 Provided 12 hours of services that were paid in advance on May 23 Adj-5 May 31 Record the receipt of a $300 utilities bill due on June 5th. Adj-5 May 31 Record the receipt of a $300 utilities bill due on June 5th. Record accrued interest on the $25,000-5 year note payable. Adj-6 May 31 Part 3 cont. - General Ledger - Post the adjusting entries to the General Ledger. Part 5 - Adjusted Trial Balance - Post the ending balances from the General Ledger to the Adjusted Trial Balance. Part 6 - Prepare the end of month Income Statement in multi-step format. Part 7 - Prepare the end of month Retained Earnings Statement Part 8 - Prepare the end of month Balance Sheet in classified format. Part 2 cont. - Add the following closing entries to the General Journal: Clo-1 May 31 Close out revenues/income Clo-2 May 31 Close out expenses/losses Clo-3 May 31 Close out dividends Part 3 cont. - Post the above closing entries to the General Ledger. Part 9- Prepare a Post-closing Trial Balance