The Hydrangea Plant Shop, owned by P. Pope, sells plants. The shop has an August 31, 2020 fiscal year end, uses a perpetual inventory system. On August 1, 2020, the companys trial balance reported the following:

ACCOUNTS PAYABLE: 65,450

Transaction for the Month

During the last month of the fiscal year, the company had the following transactions:

1. Paid $3000 for rent for the month
2. Hired a new employee to be paid $1,600 per week.
3. Collected $3,000 of the accounts receivable
4. Received $525 cash in advance from customers for merchandise to be delivered next month.
5. Paid salaries, $3,100 cash
6. P. Pope withdrew $4,800 cash.

Adjustment and additional data:

1. A count of supplies on August 31 shows $1200 on hand. 2. The Truck has an estimated 7-year useful life. 3. Of the mortgage payable, $60,000 must be paid on September 30 each year 4. An analysis of the Unearned Revenue account shows that 20% has been earned by August 31. 5. On August 31, services of $25,000 were provided but not recorded as of August 31. 6. The mortgage payable has a 3% interest rate. Interest is paid on the first day of each month for the previous months interest. 7. Employees earned $700 per day. On August 31/2020, 6 employees were unpaid for 4 days. 8. A 12-month insurance policy was purchase February 1, 2020 for $1,800 9. The telephone bill for the month was for $550, and at the end of the month it was not recorded or paid

ANSWER PART D, E, F ONLY

(a) Using the T-Accounts provided below enter the opening balances for each account. Note- not all T Accounts needed may be created and blank T- Accounts are provided if accounts need to be created. (b) Journalize the transactions for the month. Post the transactions and update the balances in the T-accounts.

(c) Prepare an unadjusted trial balance at year end. (d) Record the adjustments required at the year end. Post the adjusting entries in the T Accounts created and update the account balances as required. (e) Prepare an adjusted trial balance at year end. (f) Prepare a multiple-step income statement, statement of owners equity, and classified balance sheet

Cash Merchandise inventory Supplies Sales Returns and Allowances Sales discounts Land Truck Accumulated depreciation-Truck Accounts payable Interest Payable Unearned revenue Notes payable-Due Dec. 2022 Mortgage Payable-Due 2025 $21,385 64,125 3,750 42,800 13,800 180,000 70,800 13,275 12,650 6,070 4,680 42,000 200,000 P. Pope, capital P. Pope, drawings Sales Rent revenue Cost of goods sold Advertising expense Salaries expense Rent expense Insurance expense Interest expense Accounts Receivable $58,400 52,800 474,080 1,200 301,010 2,270 68,200 18,150 4,140 1,925 20,000 Cash Merchandise inventory Supplies Sales Returns and Allowances Sales discounts Land Truck Accumulated depreciation-Truck Accounts payable Interest Payable Unearned revenue Notes payable-Due Dec. 2022 Mortgage Payable-Due 2025 $21,385 64,125 3,750 42,800 13,800 180,000 70,800 13,275 12,650 6,070 4,680 42,000 200,000 P. Pope, capital P. Pope, drawings Sales Rent revenue Cost of goods sold Advertising expense Salaries expense Rent expense Insurance expense Interest expense Accounts Receivable $58,400 52,800 474,080 1,200 301,010 2,270 68,200 18,150 4,140 1,925 20,000