Sunny's Emporium's articles of incorporation authorize $250,000$ shares of no par value stock.

So far, Sunny Fields has sold $110,000$ shares of stock to family and friends for $$1$ per share.

Sunny's Emporium had the following transactions in June, $2024,$ the final month in their fiscal year:

TRANSACTIONS

June $1$ The company had repurchased $500$ shares of stock in November at $$75$ per share $($you do not need to make this entry$-$it is included

in the account balances$).$ They resell all of these shares at $$95$ per share $($this is the piece you need to record$).$

June $10$ The company issues $2,500$ shares of no$-$par common stock at $$98$ per share.

June $15$ The company declares a cash dividend of $$\mathrm{.}25($twenty$-$five cents$)$ per share. The date of record is June $20.$

June $25$ In addition to declaring the cash dividend, the company decides to declare a $5\%$ stock dividend that is to be capitalized

at the market price of the stock, which is $$7$ per share.

June $28$ Paid the cash dividend declared on June $15$ and distributes the stock dividend declared on June $25.$

$30-$Jun Repurchased $1,000$ shares of stock at $$6$ per share.

Required:

$1$ Journalize the transactions$--$DONE

Assume a $360$ day year for all transactions related to interest calculations.

$2$ Complete the worksheet. The information you need for the adjusting entries is:

a Evaluation of the years sales indicated that warranties related to current years sales

are estimated to be $$35,000.$

b The balance in notes payable is related to a $3-$year $6\%$ note signed on June $1,2024.$

c The annual liability insurance policy was renewed on August $1,2023.$ $$3,000$ was left from last year.

d Office supplies on hand were $$2,000$ and store supplies on hand were $$74,750.$

e Depreciation on the building is calculated using straight line with a $50$ year life and $$50,000$ residual value.

f Depreciation for the office equipment is calculated using double declining balance method, has

a five year life and it is expected to have a $$5,000$ residual value. Round to the nearest dollar.

g Store equipment has an expected useful life of $4$ years, no residual value and is being depreciated using

the straight line method. It was purchased on June $1,2023.$

h Payroll for June is going to be paid in early July. Salaries earned were $$46,000.$ The FICA rate is $7\mathrm{.}65\%$

and is paid by both the employee and the employer. Employee income taxes are withheld at a rate of $15\%.$

$3$ Journalize and post the adjusting entries.

$4$ Prepare a multiple$-$step income statement.

$5$ Prepare a statement of stockholders$$ equity.

$6$ Prepare a balance sheet.

$7$ Prepare the operating section of the statement of cash flows using the indirect method.

$8$ Journalize and post the closing entries.

$9$ Prepare a post$-$closing trial balance.

Journal entries refrenced

DATE DESCRIPTION "POST.

REF." DEBIT CREDIT

$2023$

Jun $1$ Cash $11047,500\mathrm{.}00$

Treasury Stock $31537,500\mathrm{.}00$

Paid$-$In Capital from Sale of Treasury Stock $33110,000\mathrm{.}00$

Resold treasury stock shares

$10$ Cash $110245,000\mathrm{.}00$

Common Stock $(250,000$ shares authorized, $110,000$ issued$)311245,000\mathrm{.}00$

Issued $2,500$ shares of stock

$15$ Cash Dividends $35128,125\mathrm{.}00$

Dividends Payable $26028,125\mathrm{.}00$

Declared cash dividend

$25$ Stock dividends $35239,375\mathrm{.}00$

Stock dividends Distributable $26639,375\mathrm{.}00$

Declared $5\%$ stock dividend

$28$ Dividends Payable $26028,125\mathrm{.}00$

Stock dividends Distributable $26639,375\mathrm{.}00$

Cash $11028,125\mathrm{.}00$

Common Stock $(250,000$ shares authorized, $110,000$ issued$)31139,375\mathrm{.}00$

Paid cash dividend and distributed stock dividend

$30$ Treasury Stock $3156,000\mathrm{.}00$

Cash $1106,000\mathrm{.}00$

Bought back treasury stock

CHART OF ACCOUNTS

Sunny's Emporium

General Ledger

ASSETS REVENUE

$110$ Cash $410$ Sales

$111$ Petty Cash

$120$ Accounts Receivable EXPENSES

$131$ Notes Receivable $510$ Cost of Goods Sold

$132$ Interest Receivable $515$ Credit Card Expense

$141$ Merchandise Inventory $516$ Cash Short and Over

$145$ Office Supplies $520$ Sales Salaries Expense

$146$ Store Supplies $525$ Payroll Tax Expense

$151$ Prepaid Insurance $530$ Store Supplies Expense

$181$ Land $531$ Selling Expenses

$185$ Building $532$ Product Warranty Expense

$186$ Accumulated Depreciation$-$Building $533$ Advertising Expense

$191$ Office Equipment $534$ Delivery Expense

$192$ Accumulated Depreciation$-$Office Equipment $540$ Insurance Expense

$193$ Store Equipment $541$ Office Supplies Expense

$194$ Accumulated Depreciation$-$Store Equipment $542$ Rent Expense

LIABILITIES $543$ Repairs Expense

$210$ Accounts Payable $550$ Depreciation Expense$-$Building

$221$ Notes Payable $551$ Depreciation Expense$-$Office Equipment

$225$ Bonds Payable $552$ Depreciation Expense$-$Store Equipment

$226$ Discount on Bonds $560$ Miscellaneous Administrative Expense

$227$ Premium on Bonds $561$ Miscellaneous Selling Expense

$229$ Interest Payable $710$ Interest Expense

$231$ Salaries Pay