The Wyndham Wholesale Company began operations on 8/1/16. The following transactions occur during the month of August.

1. Aug 1. Owners invest $100,000 cash in exchange for 10,000 shares of $1 par-common stock.
2. Aug 1. Equipment is purchased for $20,000 in exchange for a 6 month, 6% note. Interest is not to be paid until the end of the life of the note (i.e., on 7/31/2017). The equipment has a 5 year life and a $2,000 salvage value. Depreciation will be taken on a straight-line basis.
3. Aug 1. A rent agreement is signed and $6,000 is remitted for rent on a building for the months of August, September and October.
4. Aug 5. Merchandise inventory costing $48,000 is purchased on account. The company uses the perpetual inventory system.
5. Credit sales for the month are $80,000. The cost of merchandise sold is $32,000.
6. $25,000 is collected on account from customers.
7. $20,000 is paid on account to suppliers of merchandise.
8. Employees earn $3,000 / 5-day week and are paid bi-weekly (one week after the pay period ends). The first pay periods was for the 2 weeks 8/1/16-8/12/16 and was paid on 8/19/16. The last pay date for the month of August was 8/19.
1. A bill for $4,000 is received from the local utility company for the month of August and is not paid until September.
10. $20,000 cash is loaned to another company, evidenced by a note receivable. The note receivable is dated 8/16/16. The note requires the entire $20,000 in principal plus interest at 12% to be repaid in 4 months (the loan was outstanding for month during August)
11. The corporation declares its shareholders a cash dividend of $1,000.

REQUIREMENTS

• Prepare any necessary adjusting entries at 8/31/16.
• Post the adjusting entries to the UNADJUSTED trial balance in PART 1 to get an ADJUSTED TRIAL BALANCE.
• What is the total (amount) net effect on income and direction (overstated or understated) if these entries are not made?
• Prepare an income statement, statement of stockholders equity for the month ended 8/31/16 and a balance sheet as of 8/31/16.
• Assume that 8/31 is the companys fiscal year-end. Prepare the necessary closing entries.

The initial journal entries and unadjusted trial balance are below. I need help with the above please! ^^^

TRIAL BALANCE Account Debit Credit $73,000 $55,000 $20,000 $6,000 $16,000 $20,000 Cash Accounts Receivable Note Receivable Prepaid Rent Merchandise Inventor Equipment Accounts Payable Note Payable Accrued expenses Dividend Payable Common Stock Sales Revenue Cost of goods sold Wages expenses Utilities expenses Dividend Total $28,000 $20,000 $4,000 $1,000 $100,000 $80,000 $32,000 $6,000 $4,000 $1,000 233,000 2 233,000 JOURNAL ENTRY Ref Date Account Title Debit Credit Aug.1 Cash $100,000 Common stock $100,000 Aug.1 Equipment $20,000 Notes Payable $20,000 Aug.1 Prepaid Rent $6,000 Cash $6,000 Cash Aug.5 Merchandise Inventory $48,000 Accounts Payable $48,000 Aug.5 Accounts Receivable $80,000 $80,000 Sales Revenue Cost of goods sold Merchandise Inventory $32,000 $32,000 Aug.5 Cash $25,000 Accounts receivable $25,000 9 Aug.5 Accounts Payable $20,000 Cash $20,000 Aug.19Wage expenses $6,000 Cash $6,000 Aug.19 Utilities expenses $4,000 Accrued expenses $4,000 Aug.16 Note receivable $20,000 Cash $20,000 Dividend $1,000 Dividend payable $1,000