Part A: Journalize the following transactions for June. Dean Winchester opened Ghost Cleaners on June 1, 2021. He is the sole owner of the corporation. During June, the following transactions were completed by Dean. 1-Jun Invested $65,000 in exchange for common stock in Ghost Cleaners, Inc. 1-Jun Purchased a used van for $12,000, paying $3,000 cash and the taking out a note payable for the rest. He plans to pay off the remaining balance on the van by June 1, 2022. The note has a 10% APR with interest being payable at the end of every month. No principle payments are due until August 1, 2021. 1-Jun Paid $1,800 cash on a 12-month insurance policy effective June 1, 2021. 1-Jun Hired his brother, Sam, to help with the corporation. He will be paid $1,000 per month for now. 5-Jun Purchased cleaning supplies for $1,500 on account. 7-Jun Billed a client, F. Crowley, for services performed on June 7 in the amount of $3,000. 8-Jun Paid $100 for gasoline for the van. 12-Jun Paid $200 for maintenance on the van. 15-Jun Incurred wages expense of $2,000. 16-Jun Received payment of $3,000 for services performed on June 7. 18-Jun Paid $1,500 of accounts payable off for cleaning supplies purchased on June 5th. 20-Jun Billed a client, J. Mills, for services performed on June 20 in the amount of $8,000. 26-Jun Received payment of $4,000 for services performed on June 20. 30-Jun Paid employee wages incurred on June 15 in full. 30-Jun Paid interest on the van note payable for June in the amount of $75. Part B: Post the above transactions to the appropriate general ledger accounts and find balances. Part C: Prepare a trial balance as of June 30, 2021. Part D: Journalize and post to general ledger accounts the following adjustments for June: 1. Depreciation on the van was $200. 2. Services performed for a client, B. Singer, but unbilled as of June 30 totaled $3,500. 3. Insurance expired by one month. 4. Wages expense incurred but unpaid as of June 30 totaled $1,700. 5. Supplies used during the month totaled $700. 6. A dividend was declared for $1,000 at June 30 but remained unpaid at June 30. Part E: Prepare an adjusted trial balance as of June 30, 2021. Part F: Prepare an income statement, statement of retained earnings, and classified balance sheet for Ghost Cleaners, Inc. for June 30, 2021. Part G: Journalize and post closing entries for Ghost Cleaners, Inc. as of June 30, 2021. Part H: Prepare a post-closing trial balance as of June 30, 2021.
Part A: Journalize the following transactions for June.
Dean Winchester opened Ghost Cleaners on June 1, 2021. He is the sole owner of the corporation.
During June, the following transactions were completed by Dean.
1-Jun Invested $65,000 in exchange for common stock in Ghost Cleaners, Inc.
1-Jun Purchased a used van for $12,000, paying $3,000 cash and the taking out a note payable for the rest.
He plans to pay off the remaining balance on the van by June 1, 2022. The note has a 10% APR
with interest being payable at the end of every month. No principle payments are due until August 1, 2021.
1-Jun Paid $1,800 cash on a 12-month insurance policy effective June 1, 2021.
1-Jun Hired his brother, Sam, to help with the corporation. He will be paid $1,000 per month for now.
5-Jun Purchased cleaning supplies for $1,500 on account.
7-Jun Billed a client, F. Crowley, for services performed on June 7 in the amount of $3,000.
8-Jun Paid $100 for gasoline for the van.
12-Jun Paid $200 for maintenance on the van.
15-Jun Incurred wages expense of $2,000.
16-Jun Received payment of $3,000 for services performed on June 7.
18-Jun Paid $1,500 of accounts payable off for cleaning supplies purchased on June 5th.
20-Jun Billed a client, J. Mills, for services performed on June 20 in the amount of $8,000.
26-Jun Received payment of $4,000 for services performed on June 20.
30-Jun Paid employee wages incurred on June 15 in full.
30-Jun Paid interest on the van note payable for June in the amount of $75.
Part B: Post the above transactions to the appropriate general ledger accounts and find balances.
Part C: Prepare a
Part D: Journalize and post to general ledger accounts the following adjustments for June:
1.
2. Services performed for a client, B. Singer, but unbilled as of June 30 totaled $3,500.
3. Insurance expired by one month.
4. Wages expense incurred but unpaid as of June 30 totaled $1,700.
5. Supplies used during the month totaled $700.
6. A dividend was declared for $1,000 at June 30 but remained unpaid at June 30.
Part E: Prepare an adjusted trial balance as of June 30, 2021.
Part F: Prepare an income statement, statement of
Ghost Cleaners, Inc. for June 30, 2021.
Part G: Journalize and
Part H: Prepare a post-closing trial balance as of June 30, 2021.
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