| JUNE JOURNAL TRANSACTIONS | |
| June 1 | Signed a one year 18.5%, $180,000 note payable with First Bank. |
| June 1 | Purchased 3,000 GPS units on Credit from Navistar for $35.00 per unit. |
| June 1 | Issued 5,500 shares of common stock for $11 per share (Refer to General ledger for description of common stock). |
| June 1 | Sold 2,000 DVD players on account to Toyota for $75 per units, Invoice #5555. |
| June 2 | Sold 3,500 GPS units on account to Kia for $52 per unit, Invoice #5556. |
| June 2 | Purchases office supplies from Office Max on credit for $1,200. |
| June 2 | Sold 900 docking stations for $64 per unit and 1950 GPS units for $83 per unit on account to Nissan, Invoice #5560. |
| June 3 | The Board of Directors declared a cash dividend of $5 per share for shareholders of record on June 5th, payable on June 12th. |
| June 4 | Received payment from Toyota for May 11th sale |
| June 4 | Rented part of the warehouse to a new tenant and received $4,900 for three months rent (June, July, August). |
| June 5 | Paid $2,100 to Michigan Utility Co. for utilities bill that was recorded in May as an Account Payable, Check #5278. |
| June 7 | Received and paid expense reports for travel and entertainment totaling $925, Check #5279. |
| June 8 | Paid for office supplies purchased on June 2nd, Check #5280. |
| June 11 | Paid in full for the June 1 purchase from Navistar, Check #5281. |
| June 11 | Received a bill from the law firm of Larry, Moe & Curly for $5,400, payable upon receipt, for bond consulting fees, Check #5282. |
| June 12 | Paid the dividend that was declared on June 3, Check #5283. |
| June 13 | Took advantage of a special deal to purchase 3,250 DVD players on account from JVC for $48 per unit. |
| June 13 | Purchased 850 GPS units on credit from Magellan for $33 per unit. |
| June 15 | Sold 2,000 DVD players on credit to Fort Motor Co. for $89.00 per unit, Invoice 5557. |
| June 15 | Check # 5284 was issued for payroll: $14,500 for salaried and $4,750 for wages. |
| June 16 | Purchased 1,800 docking stations on credit from Samsung for $42 per unit. |
| June 17 | Issued a credit to Kia for the return of 350 defective units from the June 2nd sale. These units has a cost basis of $35 per unit. |
| June 17 | Returned the 350 defective units received from Kia to Navistar. |
| June 18 | Received payment in full from Toyota for the June 1st sale. |
| June 20 | While inspecting the June 13th purchase, it was discovered that the GPS units were programmed for South America instead of North America. AC Speed returned the entire order to Magellan. |
| June 20 | A bankruptcy judge disallowed AC Speed’s claim for $5,000 due from General Motors. Management Decided to write off this accounts receivable. |
| June 22 | Sold 1,650 docking stations on credit to Kia for $64.50 per unit, Invoice #5559. |
| June 23 | Paid $75,000 of the $162,500 owed to JVC from May 25, Check #5285. |
| June 23 | Received payment from Ford Motor Co. for $175,000 of the $300,000 owed from May 5. |
| June 24 | Purchased a $100 international phone card for one of the sales representative’s upcoming European business trip, Check #5286. |
| June 25 | Paid in full for the purchase from JVC on June 13, Check #5287 |
| June 26 | Purchased 1,250 docking station from Samsung for $41 per unit paying in cash, Check #5288 |
| June 27 | Sold 1,500 docking stations on credit to Honda for $61 per unit, Invoice 5558. |
| June 27 | Hired and paid a consultant $75,000 to devise a marketing plan. AC Speed’s management felt this was necessary to develop brand awareness. Check #5289. |
| June 28 | AC Speed is behind in its mortgage payments to Bank of America. Paid a total of $10,000 ($2,000 principal and $8,000 interest), Check #5290. |
| June 29 | Received payment in full from Honda for the June 27th transaction. |
| June 29 | Paid in full for the purchase from Magellan on May 31st, Check #5291. |
| June 29 | Check #5292 was issued for payroll: $14,500 for salaries and $4,750 for wages. |
| June 30 | Paid the first month’s principal payment of $15,000 on the note payable. In addition, paid one month’s interest, Check #5293 |
| June 30 | Issued bonds payable at face value for $350,000 |
| *All purchases of inventory on account terms of 2/15, n/30 | |
| **All credit sales have terms of 2/30, n/45 | |
| June Month end Adjustments: | |
| ( A ) | AC Speed has earned one month of the prepaid rent received from their tenant at the beginning of June. |
| ( B ) | The Company took a physical count of Office Supplies on June 30 and found the following to be on hand: |
| Office Supplies $2,465 | |
| ( C ) | AC Speed estimates bad debt expense on a monthly basis rather than waiting until year end. The company uses the allowance method. Based on recent industry estimates, AC Speed estimates that the allowance account should be 2.5% of accounts receivable. |
| ( D ) | The Company took a physical inventory count on June 30 and found the following inventory on hand: |
| Merchandise Inventory $122,221 | |
| ( E ) | The Balance in the prepaid insurance account at the beginning of June represents 4 months of coverage. Record the amount of insurance for June. |
| ( F ) | Depreciation on the company’s fixed assets for the month of June is as follows: |
| 1. The furniture and equipment for the warehouse was purchased a few years ago for $10,000. These assets have a 5 year life, an expected salvage value of $1,000, and are depreciated using the straight line method. | |
| 2. The furniture and equipment for the office was purchased last year for $8,500. these assets have a 7 year life, an expected salvage value of $1,500, and are depreicated using stright line method. | |
Attachments:
project.xlsx