The Case: Emma Grace opened Java Queen, Inc. on May 1, 2023. During May, the following transactions were completed. May 1 Issued 10,000 shares of common stock for $10,000 cash. Borrowed $40,000 from Ahody Bank. Interest is payable annually each May 1. Principle is due in three years. The annual interest rate is 6%. Paid $12,000 in advance for 4 months of rent. Purchased equipment costing $8,000 in cash. Paid $2,400 cash on a 1-year insurance policy effective May 1 . Paid $5,000 for caf supplies. Purchased $12,000 of food and beverage inventory on account. Grand Opening Day! Sold $4,000 of food and beverages costing $1,500. Paid for half of the inventory that was purchased on account. Paid $1,000 for the current month's utilities Sold $12,000 of food and beverage costing $4,500. Declared and paid $600 cash dividend. The chart of accounts for Java Queen, Inc. contains the following accounts: Cash, Supplies, Inventory. Prepaid Rent, Prepaid insurance, Equipment, Accumulated Depreciation, Accounts Payable, Salaries and Wages Payable, Interest Payable, Notes Payabie, Common Stock Retained Earnines, Dividends, Sales Revenue, Cost of Goods Sold, Supplies Expense, Depreciation Expense, Rent Expense, Insarance Expense, Utilities Expense, and Salaries and Wages Expense. Instructions: Use the enclosed Excel template to complete the May monthly accounting cycle for lava Queen. The lines and t-accounts provided in the template are not an indication of how many you will need. Add or delete as necessary. Step 1 - Journalize the May transactions (Excel Tab 1) Step 2 - Post to the general ledger accounts (T-Accounts) and determine unadjusted ending balances for each account (Excel Tab 2) Step 3-Prepare an unadjusted trial balance at May 31. (Excel Tab 3) Step 4 - Joumalize the following adjustments. (Excel Tab 4) (1) Employee wages earned but not yet paid at the end of the month was $2,500. (2) Depreciation on equipment for the month was $200. (3) Adjust for the amount of prepaid rent that has expired (4) Adjust for the amount of prepaid insurance that has expired (5) A count shows $4,000 of cafe supplies on hand at May 31. (6) Acerue interest expense for the month of May. Step 5 - Enter the unadjusted balances from the unadjusted trial balance [Excel Tab 3\} as beginning balances in the Updated GL (Excel Tab 5). Step 6 - Post adjusting entries to the updated generat ledger and determine the ending adjusted balances for each account. (Excel Tab 5) Step 7 - Prepare an adjusted trial balance (Excel Tab 6) from the Updated GL. Step 8 - Prepare the income statement (including gross profit) and a statement of stockholders equity for the month of May and a classified balance sheet as of May 31 (Excel Tab 7) Step 9 - Journalize the closing entries (Excel Tab 8) Step 10 - Post dosing entries from Step 9 to the Updated GL (Excel Tab 5) and recompute ending balances. Step 11 - Prepare a post-closing trial balance as of May31 (Excel Tab 9) The Case: Emma Grace opened Java Queen, Inc. on May 1, 2023. During May, the following transactions were completed. May 1 Issued 10,000 shares of common stock for $10,000 cash. Borrowed $40,000 from Ahody Bank. Interest is payable annually each May 1. Principle is due in three years. The annual interest rate is 6%. Paid $12,000 in advance for 4 months of rent. Purchased equipment costing $8,000 in cash. Paid $2,400 cash on a 1-year insurance policy effective May 1 . Paid $5,000 for caf supplies. Purchased $12,000 of food and beverage inventory on account. Grand Opening Day! Sold $4,000 of food and beverages costing $1,500. Paid for half of the inventory that was purchased on account. Paid $1,000 for the current month's utilities Sold $12,000 of food and beverage costing $4,500. Declared and paid $600 cash dividend. The chart of accounts for Java Queen, Inc. contains the following accounts: Cash, Supplies, Inventory. Prepaid Rent, Prepaid insurance, Equipment, Accumulated Depreciation, Accounts Payable, Salaries and Wages Payable, Interest Payable, Notes Payabie, Common Stock Retained Earnines, Dividends, Sales Revenue, Cost of Goods Sold, Supplies Expense, Depreciation Expense, Rent Expense, Insarance Expense, Utilities Expense, and Salaries and Wages Expense. Instructions: Use the enclosed Excel template to complete the May monthly accounting cycle for lava Queen. The lines and t-accounts provided in the template are not an indication of how many you will need. Add or delete as necessary. Step 1 - Journalize the May transactions (Excel Tab 1) Step 2 - Post to the general ledger accounts (T-Accounts) and determine unadjusted ending balances for each account (Excel Tab 2) Step 3-Prepare an unadjusted trial balance at May 31. (Excel Tab 3) Step 4 - Joumalize the following adjustments. (Excel Tab 4) (1) Employee wages earned but not yet paid at the end of the month was $2,500. (2) Depreciation on equipment for the month was $200. (3) Adjust for the amount of prepaid rent that has expired (4) Adjust for the amount of prepaid insurance that has expired (5) A count shows $4,000 of cafe supplies on hand at May 31. (6) Acerue interest expense for the month of May. Step 5 - Enter the unadjusted balances from the unadjusted trial balance [Excel Tab 3\} as beginning balances in the Updated GL (Excel Tab 5). Step 6 - Post adjusting entries to the updated generat ledger and determine the ending adjusted balances for each account. (Excel Tab 5) Step 7 - Prepare an adjusted trial balance (Excel Tab 6) from the Updated GL. Step 8 - Prepare the income statement (including gross profit) and a statement of stockholders equity for the month of May and a classified balance sheet as of May 31 (Excel Tab 7) Step 9 - Journalize the closing entries (Excel Tab 8) Step 10 - Post dosing entries from Step 9 to the Updated GL (Excel Tab 5) and recompute ending balances. Step 11 - Prepare a post-closing trial balance as of May31 (Excel Tab 9)
