In this project, you will be reporting On-a-Rolls third month, June, of business.

When recording transactions use the Chart of Accounts below:

Chart of Accounts
Accounts Payable		Depreciation Expense		Inventory
Accounts Receivable		Dividends		Notes Payable
Accumulated Depreciation		Equipment		Prepaid Insurance
Cash		Insurance Expense		Retained Earnings
Common Stock		Interest Expense		Sales Revenue
Cost of Goods Sold		Interest Payable		Wages Expense
				Wages Payable

Record the transactions and adjusting entries based on the journal explanation provided for each journal entry in the Journal provided on the next page.

Post each journal entry to the ledger (T-accounts on the third page).

Prepare the Adjusted Trial Balance. (For sake of simplicity, we will skip the step of preparing the Unadjusted Trial Balance.)

Prepare the financial statements.

Show the effect of post the closing entries.

Journal:

DATE	ACCOUNT TITLES AND EXPLANATIONS	DEBIT	CREDIT
June 1
	Paid $500 of the amount owed from Mays wages.
June 1
	Purchased $15,000 for 5,000 pre-made sandwiches on account.
June 1
	Paid $2,000 of its accounts payable from Mays purchase of inventory.
June 5
	Collected $4,000 of its accounts receivable from May sales.
June 10
	Sold 4,000 sandwiches on account. The sales price was $7 per sandwich and the cost was $3 per sandwich.
June 30
	Paid the interest and principal due on the 3-month, 12%, $8,000 note payable.
June 30
	Declared and paid a $300 cash dividend to its shareholder.
June 30
	Adjusted for $600 of wages owed that will be paid in the first week of July.
June 30
	Adjusted for insurance used during the month. Recall that on May 1, $1,200 of insurance was paid in advance for six months of insurance coverage.
June 30
	Adjusted for depreciation of its equipment that cost $6,000 and has an estimated useful life of five years and $0 residual value.