1. On the Excel Spreadsheet found in Angel, please do the following:

a.Record the following transactions as journal entries

b.Post the entries to the T-accounts

c.Link the T-accounts to the Trial Balance

d.Record the adjusting journal entries

e.Prepare the Adjusted Trial Balance

f.Link the Adjusted Trial Balance to the Income Statement, Statement of Retained Earnings, and Balance Sheet.

g.Prepare the closing entries

h.Prepare the post-closing Trial Balance

i.Answer the multiple choice questions at the bottom.

You own an apple orchard, Paradise Lost, Inc., in the northwest part of Michigan. Below is the trial balance from June 30, 2015 and the listing of transactions you encountered for the month of July, 2015 which is the last month in your fiscal year. Please record these transactions in the general journal, post them to the T-accounts and link the final balances of the T-accounts to the Trial Balance. (Hint: you will need to enter the balances from the June 30 Trial Balance as the beginning balances in your T-accounts).

July 2015 Transactions

July 2 Sold 200 bushels of apples to Martins Supermarkets on account for $4,000. These bushels are in Inventory at $ 2,200.

July 5 Purchased additional machinery for $ 12,300. Didnt put into service until August of 2015.

July 10 Paid mortgage payment of $ 17,600. This included interest of $9,825.

July 13

Paid bill to local cooperative of $ 2,800. This was for fertilizer received and recorded in June of 2015.

July 18 - Invested $25,000 in the business by purchasing 10 shares of common stock.

July 22 Received $ 29,500 from Martins Supermarkets for apples purchased on account.

July 29 Purchased $14,000 of fertilizer on account from local cooperative (Inventory).

July 31 - Martins Supermarkets (a customer) prepaid $ 7,500 for apples yet to be delivered.

July 2015 Adjusting Journal Entries

Based on your depreciation records, the Fruit-bearing trees will depreciate $ 1,200 this month and the Machinery and Equipment will depreciate $ 3,800.

Your next mortgage payment is due on August 10. The payment will again be for $17,600, which includes interest of $ 9,650.

Prepaid Expenses represents a 6 month insurance policy that expires on October 31. Please make the proper adjustment to show the use of Julys premiums.

Paradise Lost, Inc. Trial Balance As of June 30, 2015 Account Cash Accounts Receivable Prepaid Expenses Inventory Non fruit-bearing trees Fruit-bearing trees Machinery and Equipment Accumulated Depreciation Accounts Payable Interest Payable Unearned Revenues Mortgage Payable Common Stock ($100 par value, 100 shares outstanding) Paid in Capital in Excess of Par Retained Earnings Dividends Sales Cost of Goods Sold Depreciation Expense Insurance Expense Interest Expense $ 38,500 S 112,200 $ 18,500 $ 87,400 $ 325,000 $1,720,250 $ 687,150 349,800 $ 28,600 0 0 $ 854,700 100,000 $ 280,000 $1,328,750 $ 24,000 $832,000 365,000 $ 49,600 110,000 $ 68,400