A$.$ Record Transactions

Lidia is looking to open another brick$-$and$-$mortar shop, but is not sure if she has the funding or the staff to handle another store. Prepare a tabular summary for Lidia of the following transactions for the months of June, July, and August. Be sure to include explanations for any revenues or expenses recorded. Include only one totals line at the

end of August $($after recording all transactions$).$

June

$1$ Lidia invested $$10,000$ cash in the business as owner$$s capital

$2$ Paid $$1,200$ cash for June building rent

$3$ Purchased furniture for $$3,300$ cash

$3$ Paid $$650$ for supplies

$4$ Obtains $$20,000$ cash loan from the bank, due in $6$ months plus $6\%$ interest

$5$ Incurred $$250$ of advertising costs in the Albuquerque Journal on account

$7$ Received $$4,700$ in cash from Mr$.$ Ortega for prepaid consulting services

$13$ Paid $$250$ cash for advertising costs incurred on June $5$

$15$ Paid $$2,500$ for merchandise inventory

$17$ Purchased computers for the office for $$1,850$ cash

$22$ Hired two part$-$time employees and agreed to pay them $$15$ an hour for $20$ hours

a week starting in July

$25$ Received $$3,300$ in cash from Ms$.$ Black for prepaid consulting services

$29$ Purchased $$1,200$ merchandise inventory on account

$30$ ADJ: Incurred $$200$ worth of utilities expense to be paid in July

$30$ ADJ: Consulted with Mr$.$ Ortega and earned $50\%$ of his prepayment from June $7$

$30$ ADJ: Counted supplies and only $$400$ worth remains

$30$ ADJ: Incurs one month of interest on bank loan due upon maturity of note

July

$2$ Paid $$1,200$ cash for July building rent

$3$ Paid $$475$ for supplies

$5$ Incurred $$250$ of advertising costs in the Albuquerque Journal on account

$6$ Performed services for Children$$s Preschool for $$2,500$ cash

$7$ Paid $$200$ in utilities from June

$9$ Paid for merchandise inventory purchased on June $29$

$10$ Sold merchandise inventory costing $$800$ to the local sorority house for $$1,300$

cash

$11$ Sold $$700$ worth of merchandise inventory to Bob$$s Auto Parts for $$1200$ on account

$13$ Paid $$250$ cash for advertising costs incurred on July $5$

$15$ Paid $$4,000$ for merchandise inventory

$15$ Paid both employees for two weeks of work each

$21$ Received $$4,250$ in cash from Team Adventures for prepaid consulting services

$24$ Performed services for Mini Brick Fun, Inc. for $$1,200$ cash.

$24$ Sold Mini Brick Fun, Inc. merchandise inventory worth $$1,200$ for $$1,700$ cash to help organize their mini bricks

$25$ Lidia made a $$650$ owner$$s withdrawal

$26$ Performed the rest of the consulting services for Mr$.$ Ortega

$28$ Performed $75\%$ of services for Ms$.$ Black from her June $25$ prepayment

$30$ Paid both employees for two weeks of work each

$31$ ADJ: Incurred $$200$ worth of utilities expense to be paid in August

$31$ ADJ: Consulted with Team Adventures and earned $20\%$ of their prepayment from July $21$

$31$ ADJ: Counted supplies and only $$325$ worth remains

$31$ ADJ: Incurs one month of interest on bank loan due upon maturity of note

August

$1$ Mini Brick Fun, Inc. returned merchandise inventory for $$600$ cash back. The cost is $$100$ and the merchandise is put back into the inventory room to be sold to another customer

$2$ Paid $$1,200$ cash for August building rent

$3$ Paid $$1,500$ for supplies

$5$ Incurred $$250$ of advertising costs in the Albuquerque Journal on account

$6$ Performed services for House Decor for $$4,800$ on account

$7$ Paid $$200$ in utilities from July

$9$ Purchased $$5,000$ of merchandise inventory on account

$10$ Sold merchandise inventory costing $$3,700$ to the House Decor for $$4,200$ cash

$10$ Received payment from House D$$cor for services provided on August $6$

$13$ Paid $$250$ cash for advertising costs incurred on August $5$

$14$ Paid both employees for two weeks of work each. Hired a third employee to start immediately at same pay rate and hours

$16$ Performed remaining services for Ms$.$ Black

$19$ Recorded $$1,300$ in cash sales $($$$800$ cost$)$ at a special wedding expo event

$21$ Performed another $20\%$ of services for Team Adventures

$23$ Paid for merchandise inventory purchased on August $9$

$24$ Sold merchandise inventory costing $$1,700$ to The Law Offices of Marianne Martinez for $$2,200$ cash

$27$ Lidia makes an owner withdrawal of $$975$

$29$ Paid all three employees for two weeks of work each

$31$ ADJ: Incurred $$200$ worth of utilities expense to be paid in September

$31$ ADJ: Performed remaining services for Team Adventures

$31$ ADJ: Counted supplies and only $$600$ worth remains

$31$ ADJ: Incurs one month of interest on bank loan due upon maturity of note

Final Check Figures:

Cash $$28,600$

Net Income $$10,575$

Total Assets $$39,450$

Total Liabilities $$20,500$