On May $31,2023,$ the end of its most recent fiscal year, Heroic Hold ings' post$-$closing trial balance was as

follows:

Debit

Credit

The company underwent a major expansion in Jun. New staff was hired and more financing was

obtained. Heroic Holdings conducted the following transactions during Jun $2023,$ and adjusts its

accounts monthly.

Jun $01$ Purchased equipment, paying $$80,000$ cash and signing a $2-$year note payable for

$$120,000.$ The equipment has a $5-$year useful life. The note has a $3\%$ interest rate, with interest payable

on the first day of each following month.

Jun $02$ Issued $560,000$ shares of common stock for $$1,400,000$ cash.

Jun $03$ Paid $$25,200$ cash for a $12-$month insurance policy effective Jun $01.$

Jun $10$ Collected $$194,068$ cash on account from Michael Scott Paper Company. This client was

billed in May when Heroic Holdings performed the service.

Jun $14$ Paid $$36,400$ cash for a utility bill. This was related to May utilities that were accrued at

the end of May.

Jun $20$

Performed services worth $$110,000$ on account and billed customers.

Adjustment data:

Adjustment of prepaid insurance.

Equipment depreciation, $$3,333$ per month.

Accrual of interest on note payable.

Estimated utilities expense for June, $$1,630($invoice will be received next month$).$

Income tax for June, $$4,876$ will be paid next month.

The chart of accounts for Heroic Hold ings contains the following accounts: Cash, Accounts Receivable,

Supplies, Prepaid Insurance, Prepaid Rent, Equipment, Accumulated Depreciation$-$Equipment, Accounts

Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned

Service Revenue, Common Stock, Retained Earnings, Income Summary, Service Revenue, SuppliesExpense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense,

Income Tax Expense, Interest Expense, Rent Expense, and Utilities Expense.

Instructions

Part$1.$ Journalize the transactions $($including adjusting entries$).$

Part$2-$a$.$ Enter the opening balances in the ledger accounts $($Use T$-$accounts$).$

Part$2-$b$.$ Post only non$-$adjustment transactions to the ledger accounts.

Part$2-$c$.$ Post adjusting entries for the month ending Jun $30,2023.$

Part$2-$d$.$ Prepare the adjusted trial balance.

Part$2-$e$.$ Prepare an income statement and a retained earnings statement for June and a balance sheet at

Jun $30,2023.($Net income $$97,761,$ Total assets $$3,140,717)$

Submit your answers in the Excel file provided separately.

DS version: ds$240219002314$