The following transactions occurred during the companys first month.

June 1 The owner invested $32,000 cash and vehicle worth $26,000 in the company.

2 The company rented furnished office space by paying $7,800 cash for the 6 months rent in advance.

3 The company purchased $2,500 of office supplies for cash.

7 The company purchased goods for $4,500 on account.

10 The company paid $2,160 cash for the premium on a 6-month insurance policy.

16 The company sold goods for $4,050 by receiving a promissory note.

19 The company purchased goods for $2,250 in cash.

20 The company collected $1,600 cash for the services that will be rendered in coming days.

23 The company sold goods for $2,760 on account.

28 The company paid $4,400 cash for salaries earned by employees.

29 The company paid $750 cash for minor repairs to the companys vehicle.

30 The company paid $550 cash for this months telephone bill.

30 The owner withdrew $1,200 cash from the company for personal use.

Instructions:

1. Prepare journal entries to record the transactions for June and post them to the ledger accounts. Use Periodic Inventory Method for merchandising operations.

2. Use the following information to journalize and post adjusting entries for the month:

a) One months insurance coverage has expired and one months rent has expired.

b) At the end of the month, $700 of office supplies are still available.

c) This months depreciation on the computer equipment is $500.

d) Employees earned $520 of unpaid and unrecorded salaries as of month-end.

e) The company earned $1,300 of advanced collection made on June 20.

f) The company earned $3,050 of commissions that are not yet billed at month-end.

g) Cost of goods on hand as of June 30, 2017 is $1,250.

3. Prepare Adjusted Trial Balance.

4. Prepare journal entries to close revenues/expenses and post these entries to ledger.

5. Prepare the Income Statement for June and Balance Sheet as of June 30, 2017.