Wood, Corp was created on June 1, 2019. The company owns and operates a shoe store. Using the "Accounting Review" spreadsheet, complete the following: a. Prepare journal entries for each transaction below, which occurred in the first month, June 2019, of business for Wood, Corp 1. Issued 100,000 shares of common stock in exchange for $250,000 cash. 2. Purchased fixtures (asset) at a cost of S100,000. $40,000 was paid in cash and a note payable was signed for the balance owed. 3. Paid S14,000 in rent on the building for the month of June. 4. Purchased inventory on account at a cost of $200,000. The company uses the periodic method. 5. Credit sales (on account) for the month totaled $280,000. 6. Paid S120,000 on account for merchandise purchased in transaction 4 7. Collected $55,000 from customers on account billed in transaction5 8. Paid S2,500 for utilitics expense 9. Paid S24,000 for 12 months of insurance 10. Paid $3,000 for advertising expense. 11. Paid dividends of $4.750. b. Post the journal entries to general ledgers by linking the numbers. C. Using the general ledger accounts (tab b), create an UNADJUSTED trial balance for Wood, Corp as of June 30, 2019 d. Prepare adjusting entries for each transaction below, which occurred at the end of June. 1. At the end of the month, the inventory was counted and had a value of S125,000. Make the necessary adjusting journal entry to close the purchases account and calculate the cost of goods sold. If needed, refer to Accounting Procedures Handbook p. 36 for help 2. Adjust the prepaid insurance account for the amount used during the month. 3. All employees are paid once a month and receive their paycheck on the tenth of each month. Payroll Expense for the month was $150,000 e. Post the remaining journal entries to general ledgers accounts (tab b). At this point, you need to think about how adding lines and fixing totals to make your t-accounts functional. From this point on, numbers CANNOT be manually entered. Instead they have to be linked! Linking is worth 10 points of your grade. f. Using the general ledger accounts (tab b), create an ADJUSTED trial balance for Wood, Corp as of June 30, 2019 g. Using the info in the Adjusted Trial Balance, create an Income Statement. h. Using the info in the Adjusted Trial Balance, create a Balance Sheet. i. Create closing journal entries. At this point, you need to think about how adding lines and fixing totals to make your t-accounts functional. Remember REDI (Revenue, Expense, Dividend, Income Summary). Post journal entries to general ledger accounts (tab b) for Closing Entries HINT: Think about what general ledger accounts should be zero when you are done with this process. j. Using your general ledger accounts (tab b), create a POST-CLOSING Trial Balance for Wood, Corp as of June 30, 2019 k Perform a vertical analysis of the income statement and compute the current ratio for Wood, Corp Turn in your Excel sheet via Blackboard under "Accounting Review Submit
