60.1K

Verified Solution

Link Copied!

Joe's Music Shop Project Information and Instructions Joe Smith own a shop in downtown Little Rock that sells musical instruments. He is looking for a new accountant for his business. He has asked you to prepare monthly financial statements for him to access your capabilities. He has provided the following information: - His balance sheet for June 2021 - Joe uses the specific identification method of inventory. All sales are billed and are recorded on the 15th and last day of each month. Sales for July were: - 15th Sales =9,425 Cost of Goods Sold =5,340 - 31st Sales =8,900 Cost of Goods Sold =4,250 - Joe has one employee that he pays $625 every Friday. The month started on a Monday and ended on a Wednesday. (Ignore payroll tax and withholdings) - Depreciation expense for the building is $9,600 per year - Depreciation expense for equipment is $720 per month - A count revealed $450 supplies remained on July 31 - $1,600 of the unearned revenue was earned during the month - The company also had the following transactions throughout the month: July 1 - Paid $1,250 for July rent July 5 - Received $2,600 from customers July 7 - Paid $5,200 on accounts payable due July 10 - Paid $1350 to repaint the salesroom July 14 - Received $9,700 worth of inventory on account July 19 - Paid $5,000 on accounts payable due July 20 - Purchased new office equipment for $2400 cash July 24 - Received $14,375 from customers Journal each transaction in chronological order. Do not forget the paydays, sales and adjusting entries at the end of the month. Then post these entries into your T accounts. Use the provided balance sheet for beginning balance information. Lastly, use the T accounts to create a trial balance. Joe's Music Shop Balance Sheet 30-Jun-21 Current Liabilites Liabilites and Stockholders Equity Accounts Payable Unearned Revenue Total Current Liabilities Long Term Liabilites: Bonds Payable Total Liabilities 322,025 Stockholder Equity Common Stock Add. PIC Common Stock Total Paid-In-Capital Retained Earnings Total Equity Total Liabilities and Equity 286,075$608,100

Answer & Explanation Solved by verified expert

See Answer