This question has been posted previously but I need help and to ask some questions (below REQUIRED).

Happy Harry Pets was incorporated n Jan 1. The following transactions occurred during the first 12 months of operations.

Jan 1: Common Stock issued for cash: $295,000

Feb 8: Company purchases and pays for 160 units of dog food at $25 per unit: $4,000

Mar 1: Company pays cash for a 1-yr insurance policy: $9,300

Mar 31: Rent on retail space for 12 months: $12,480

Apr 1: Grooming and boarding equipment w/useful life of 2 years is purchased for cash: $18,000

Apr 10: Grooming supplies purchased on account: $1,450

May 15: Company purchases and pays for another 370 units of dog food at $29 per unit: $10,730

May 30: Grooming supplies are performed on account: $13,625

June 1: Company pays for advertisements to run for the next 12 months: $864

June 30: Company issues a 5-year bond with face value of $100,000 and a stated annual rate of 6%. Interest is due June 30th each year.

The market rate is 8% on the date of issuance: $100,000

July 25: Dog-walking services are performed on account: $14,225

July 31: 95 units of dog food are sold for $70 per unit with terms 2/10, n/30. The sales are recorded using Gross Method (see Note C for Cost Flow Assumptions): $6,650

Aug 2: Boarding services are provided on account: $6,280

Aug 6: Company receives full payment from July 31 sale: $6,517

Sep 15: Pet sitting services are performed on account: $6,245

Sep 29: Customer payments are received for services previously provided: $1,250

Oct 13: 100 units of dog food are sold for $73 per unit with terms 2/10, n/30. The sale is recorded using Gross Method: $7,300

Oct 29: Company receives payment for half of October 13th sale: $3,650

Nov 1: Equipment originally purchased on April 1 for $2400 is sold for $2,000 cash.

Nov 15: A bookkeeper is hired to help with daily accounting taxes and annual tax prep

Dec 15: Bookkeeper is paid $3,500 for previous months' services: $3,500

ADDITIONAL INFORMATION

a. Grooming Supplies on hand at end of the month: $870

b. The year-end balance reported at the end of the year for the Allowance for Doubtful Accounts is estimated at 4% of outstanding receivables at the end of the year.

c. Company uses a perpetual inventory system and accounts for costs using the FIFO cost flow assumption. On Dec 31, the ending inventory is 335 bags of dog food.

d. All revenue is recorded in the Sales Revenue account and reported net of cash discounts on the Income Statement.

e. The Effective Interest Method is used to amortize bond premiums and discounts.

f. Adjustments are made at year-end for prepaid insurance, rent, advertising, depreciation, and interest expense.

g. Bookkeeper is paid a salary of $3,500 on 15th of each month.

h. Company declared dividends of $650 for the year.

i. Assume selling expenses include Advertising and Supplies Expenses. All other expenses, other than Depreciation and Interest Expenses, are considered General and Administrative.

REQUIRED

1. Prepare Journal Entries for each transaction with descriptions.

2. Post Journal Entries to General Ledger Accounts.

3. Prepare an Unadjusted Trial Balance.

4. Prepare Adjusting Journal Entries with descriptions and Post to General Ledger.

5. Prepare Adjusted Trial Balance on Dec 31st.

6. Prepare Closing Entries, post to General Ledger, and carry forward balance to Jan 1st of next year.

7. Prepare financial statements on Dec 31st:

a. Multi-step Income Statement

b. Statement of Stockholders' Equity

c. Classified Balance Sheet

d. Indirect Method Statement of Cash Flows

QUESTIONS & ISSUES:

#1: Prepare Journal Entries w/descriptions: I need help with the June 30 Bond issuance. Please show how you got the answer. (The Effective Interest Method is used to amortize bond discounts).

#2: Post Journal Entries to General Ledger Accounts: Dividends are listed under the Temporary Accounts page of the Gen. Ledger. The company did not pay dividends, only declared them. The Dividends Payable account (Liabilities) has $650 credit. What do I put in the Dividends account?

#5: Prepare Adjusted Trial Balance. Do I included the $650 Dividends Payable and $650 Retained Earnings on the Adjusted Trial Balance? Why or why not?

I need someone to show me how to complete #6 and #7 if possible.

Thanks in advance!