1.Please record the transactions listed that occurred up until June 30^th into T-accounts. Please label each transaction based on the transaction #s

2. After you have recorded the entries, please construct an Income Statement (i.e., Gross Profit, Operating Inc., etc.) and Balance Sheet following the formats used in class examples (i.e., Current Assets, Current Liabilities, etc.).

ABC Corp. sales laptop computers and conducted the following transactions occurred six-month accounting period ending June 30^th.

January 1^st, received $100k from investors to create the company.

January 1^st paid $24,000 in advance for two years worth of access to a manufacturing facility.

January 15^th purchased $4,000 of office supplies and will pay the bill at a later date.

January 17^th purchased office furniture and equipment totaling $35,000 with cash.

February 1^st. Borrowed $50k from a local bank that will be paid back in 8 months at a 4% annual interest rate. The loan proceeds will be used to finance the companys initial operating expenses, such as funding payroll.

March 1^st ABC contacted a website design contractor who agreed to build a website for $6,000 to create a website and another $12,000 to maintain the website for the remainder of the year.

March 15^th, ABC Corp. hired five employees to help run the business.

March 30^th, Paid employee salaries totaling $10,000.

April 1^st Acquired a total of 30 laptops from Dell, Inc. for a total price of $30,000. $10,000 was paid to Dell at that time; the remaining $20,000 will be paid on a future date.

April 15^th, Paid $5,000 to sponsor a local tennis tournament that took place during the final weekend of April.

April 20^th. Sold 10 laptops to a local university for a total price of price of $20,000. The university paid ABC Corp half that amount on April 20^th and will pay the remainder during May.

On April 30^th, ABC paid Dell the remaining balance owed for the April 1^st transaction.

On May 15^th, ABC received the remaining balance owed to them by the university that purchased laptops on April 20^th.

On May 20^th, ABC received a $40,000 order from a local hospital for 20 laptops that must be delivered before July 15^th.

On May 30^th, ABC received cash for a sale 15 laptops for a total sales price of $30,000.

On June 15^th, ABC purchased an additional 50 laptops from Dell (on credit) for a total of $50,000.

On June 20^th, ABC delivered 10 laptops to the local hospital that ordered them on May 20^th.

On June 30^th, ABC recorded the following adjusting entries:

18. $1,000 of depreciation was recorded on the office furniture & equipment.

19. $500 of office supplies were used since January 15^th

20. $10,000 of wages were owed to employees but will not be paid until the first week of July.

21. Interest expense on bank loan was recorded (you need to compute the $ amount).

22. Recorded rent expense for the six month period ending June 30^th

23. ABC estimated that $500 of taxes on profits earned through June 30^th would have to be paid to the IRS during July.

24. ABC performed the closing entries for the income statement accounts.