Question

Create the Trial Balance for Be Jeweled, Inc. as of June 30, 2017 in proper form. (12.5 points--graded for accuracy and format, including Excel spreadsheet links and formulas)

Transactions:
1	1/2/2017	Issued 7,100 shares of stock to investors consisting of friends and family. Shares were sold at par value of $21 each.
2	2/1/2017	Paid $2,400 in cash to purchase display equipment for the jewelry showroom.
3	2/1/2017	Puchased a building for office, workshop, and retail space for $348,000. They paid 35% down in cash and signed a 20 year mortgage note with a 4.5% interest rate for the rest. Principal and interest payments will be made annually.
4	2/1/2017	Purchased inventory on account for $66,350.
5	2/1/2017	The company purchased a twelve month insurance policy and paid cash in advance of $2,100.
6	2/26/2017	Recorded jewelry sales to a local art gallery, sold on account for $8,500.
7	4/1/2017	Received a 5 year loan of $260,000, requiring annual payments, from the bank. The annual interest rate was 4.75%.
8	4/2/2017	Paid $42,000 of the Account Payable for the inventory to the supplier.
9	4/30/2017	The company received a cash payment of $5,505 from the sales on account from the local art gallery.
10	6/30/2017	Jewelry sales in cash for February through June 30th were $62,835.
11	6/30/2017	Cost of Goods Sold for the February through June 30th sales (cash and credit) were $30,340.
12	6/30/2017	Salaries and wages expense for February through June 30th combined was $28,065. Of this total, $24,530 was paid in cash and the rest will be paid in July.
13	6/30/2017	The company records depreciation monthly. The building has a useful economic life of 40 years and the company uses the straight line depreciation method. Pay attention to the purchase date!
14	6/30/2017	The company records depreciation monthly. The display equipment has a useful economic life of 10 years and the company uses the straight line depreciation method.
15	6/30/2017	Insurance expense for Feb through June 30th is 5/12 of the amount paid in advance.
16	6/30/2017	The company accrued interest expense for the first five months they held the mortgage and the first three months they held the bank loan.

Answer 1

Be Jeweled, Inc. Journal Enteries Date Particulars 2.1.2017 Cash a/c To Common Stock (Common Stock issued) Dr. Debit in $ Credit in $ 149100 149100 Dr. 2400 1.2.2017 Equipment a/c To Cash (Equipment purchased) 2400 1.2.2017 Dr. 348000 Building a/c To Cash To Note Payable (Workshop purchased) 121800 226200 66350 1.2.2017 Inventory a/c Dr. To Accounts Payable (Inventory on account) 66350 2100 1.2.2017 Prepaid Insurance a/c Dr. To Cash (12 month insurance paid) 2100 Dr. 8500 26.2.2017 Accounts Receivable a/c To Sales (Sales on account) 8500 1.4.2017 Dr. 260000 Cash a/c To Bank Loan (Bank Loan received) 260000 Dr. 42000 2.4.2017 Accounts Payable a/c To Cash (Creditors paid) 42000 5505 30.4.2017 Cash a/c Dr. To Accounts Receivable (Cash from debtors) 5505 Dr. 62835 30.6.2017 Cash a/c To Sales (Sales in cash) 62835 30340 30.6.2017 Cost of goods sold a/c Dr. To Inventory (Cost of goods sold recorded) 30340 28065 30.6.2017 Salaries and wages expense a/c Dr. To Cash To Salaries and wages payable (Salary paid) 24530 3535 30.6.2017 Depreciation Expense a/c Dr. 7250 To Accum. Depre- Build 7250 (To record depreciation ) 348000 / 40 = 8700 x 5/6 = 7250 30.6.2017 Depreciation Expense a/c Dr. 200 To Accum. Depre - Equip. (To record depreciation ) 2400 / 10 = 240 x 5/6 = 200 200 875 30.6.2017 Insurance Expense a/c Dr. To Prepaid Insurance (Insurance expensed) 2100 x 5/12 875 30.6.2017 Interest Expense a/c Dr. 7329 To Interest Payable 7329 (Interest accrued) 226200 x 4.5% x 5/12 = 4241 + 3088 = 7329 260000 x 4.75% x 3/12 = 3088

Adjusted Trial Balance For the period ending 30.6.2017 Particulars Cash Accounts Receivable Inventory Prepaid Insurance Building Accum. Depre - Build Equipment Accum. Depre - Equip. Accounts Payable Salaries and wages payable Interest Payable Note Payable Bank Loan Common Stock Sales Cost of goods sold Salaries and wages expense Depreciation Expense Insurance Expense Interest Expense Totals Debit in $ Credit in $ 284610 2995 36010 1225 348000 7250 2400 200 24350 3535 7329 226200 260000 149100 71335 30340 28065 7450 875 7329 749299 749299 71335 -30340 40995 Statement of Income For the period ending 30.6.2017 Sales Cost of goods sold Gross Profit Salaries and wages expense Depreciation Expense Insurance Expense Interest Expense Net Loss 28065 7450 875 7329 43719 -2724

Amounts in $ Amounts in $ 24350 3535 7329 35214 Balance sheet As at 30.6.2017 Assets Amounts in $ Amounts in $ Liabilities Current Assets Current Liabilities Cash 284610 Accounts Payable Accounts Receivable 2995 Salaries and wages payable Inventory 36010 Interest Payable Prepaid Insurance 1225 324840 Non Current Liabilities Non Current Assets Note Payable Building 348000 Bank Loan Accum. Depre - Build -7250 340750 Equipment 2400 Share holders Equity Accum. Depre - Equip. -200 2200 Common Stock Retained Earnings Total Assets 667790 Total Liabilities & Equity 226200 260000 486200 149100 -2724 146376 667790