Post the journal entries to the T-accounts and calculate the account balances. Prepare an unadjusted trial balance.

Post the journal entries to the T-accounts and calculate the account balances.

Prepare an unadjusted trial balance. Check figure: Total Debits = $425,495.

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Prepare adjusting journal entries in the general journal based on the following

information (all AJEs are dated June 30):

a) The building (barn and office space) has an estimated useful life of 25

years. Record depreciation for one month.

b) The equipment has an estimated useful life of 7 years. Record depreciation for one

month.

c) Record insurance expired for one month.

d) Supplies on hand at the end of June have a cost of $1,305.

e) Accrue employee wages for 5 days from Monday June 24 through Friday June 28

(payroll is $5,500 for the two week pay period totaling 10 days for a Monday-Friday

workweek).

f) Accrue interest for June on the $234,000 Mountain High Bank note payable. The

annual interest rate is 4%.

g) As of the end of June, $1,365 of the services have been performed for

customers for which payment had been received in advance on June 18.

h) In June, entered into a contact with Barr & Associates, CPAs to provide gear

transport services for the firm’s professionals. Larry’s Llama Livery will bill Barr &

Associates in the following month for services provided. Services totaling

$1,100 were performed in June and will be billed in July 2016.

i) Income taxes to accrue for June are estimated to be $1,855.

Post the adjusting entries to the T-accounts and calculate the account balances.

Prepare an adjusted trial balance. Check figure: Total Debits = $433,335.

Prepare the financial statements:

a) Income Statement

b) Statement of Retained Earnings

c) Balance Sheet:

Prepare the closing entries in the general journal (all CJEs are dated June 30).

Post the closing entries to the T-accounts and calculate account balances.

Transactions:

June 3 Larry’s Llama Livery, Inc. sold 50,000 shares of $3 par value common stock for

$150,000.

3 Found the perfect building with barn and office space in which to locate the

business. Negotiated a price of $330,000; Larry’s Llama Livery paid $96,000 in

cash and signed a long term promissory note for the $234,000 remainder to

Mountain High Bank.

4 Purchased equipment for the business for $21,420 on account (credit) from Llama

Equipment Company.

4 Paid the $2,700 premium for a 1-year insurance policy.

5 Paid $850 for advertising in the Tree Tops Press Newspaper to run throughout the

month.

6 Purchased $2,235 of supplies on account.

7 Paid $8,000 on account to Llama Equipment Company for the equipment

purchased on June 4.

10 Employee wages are paid every two weeks on the Monday following the payroll

period (Monday- Friday workweek). Paid employee wages of $5,760 for the payroll

period ending June 7.

11 Gear transport services provided to customers on account totaled $7,950.

14 Gear transport services provided to customers for cash during the first half of June

totaled $8,640.

18 Received $2,500 cash in advance (deposits) from customers for services to be

performed in late June and early July.

21 Paid utility bills (water, electric, telephone) for the month totaling $870.

24 Received $3,680 from customers for payments on their accounts.

24 Paid employee wages of $5,890 for the payroll period ending June 21.

27 Gear transport services provided to customers for cash during the second half of

June totaled $6,750.

28 Declared and paid cash dividends to the stockholders, $1,100

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