Sophie's Sensational Syrups, a sole proprietorship that makes specialty mocktails with fancy organic syrups, has hired you as an accountant to record journal entries and prepare the financial statements for the first month of business ended June 30, 2023. For now, the business is operated out of a food truck converted to disburse chilled beverages. Sophie predominately caters to private events where there is a guaranteed large crowd of customers. The business, to date, has been funded by a small group of friends, as well as a sizeable bank loan. Sophie headquarters their small business in Federal Way, Washington, a suburb south of Seattle. If profitable at the end of the first month, Sophie has indicated they would like to provide a small dividend back to each of the investors. Sophie is looking forward to your knowledge of accounting to help them make more informed business decisions in order to expand in the future. Using the instructions provided in class (Canvas), complete the following Excel worksheets. Remember to use good accounting form and consider the overall professional presentation of your work. Sophie not only wants accurate financial statements, but professionally formatted statements she can show her outside investors, banks, and friends.

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During June 2023 the following activities occurred: 6/1/2023 Sophie borrowed $80,000 with 6% interest from HomeStreet Bank to start her business. 6/1/2023 Sophie contacted 4 friends, each of which contributed $25,000 to her business venture. 6/2/2023 Sophie purchased a food truck, including a cash register, retrofitted for her specific business costing $75,000. Sophie wants to classify the long-term asset as Equipment in her books. 6/2/2023 $600 was paid in advance for 1 year of insurance. 6/3/2023 Purchased supplies costing $500 from Best Buy, paying $100 cash and putting the rest on account. 6/4/2023 Paid $90 for a newspaper advertisement that was also printed on 6/4. 6/5/2023 In preparation for all upcoming events, Sophie purchased $16,000 of inventory (food, promotional cups with logo, etc.). Sophie's first event was for Seattle University. She earned $2,500 all from cash sales. $1,100 of 6/8/2023 inventory was used. When Sophie counted the cash at the end of the day only $2,490 was in the register. 6/9/2023 6/10/2023 6/11/2023 One of Sophie's employees noticed that a cooler was left open during the night and $675 of inventory was spoiled (i.e., obsolete). Paid cash for half of office supplies purchased on credit earlier in the month. Sophie's second event was for a community charity event in which she did not charge for any of her drinks. Sales would have been $2,000. $700 of inventory was still used for the cause. Sophie worked an event for the Seattle Mariners for $8,000 with a promise to pay and terms of 2/10, n/30. COGS totaled $3,000. 6/12/2023 6/13/2023 Sophie contracted with the Chieftain and sold $1,000 of drinks costing $400. The Chieftain didn't pay that night, but agreed to terms with Sophie of 2/10, n/30 before closing up. 6/14/2023 Purchased additional inventory for $4,000 on account. 6/15/2023 Sophie's employee sold 2 gift cards for $150 each. No beverages were sold at this time. Returned $300 of groceries from the 6/14 transaction. Sophie accidentally bought bananas not 6/16/2023 plantains (and the store accepted the return b/c of the simple mistake). Sophie and her employee canvased the Freemont Solstice Parade and sold $400 worth of 6/17/2023 promotional cups (inventory) with Sophie's logo on them for $500 all on account. No sales discounts were offered but all customers promised to pay by 7/15/23. A couple of customers from 6/17/23 returned $40 worth of cups. Sophie accepted the return and waived the $50 owed. 6/28/2023 6/18/2023 6/21/2023 The Mariners paid for the event that occurred earlier in the month. 6/24/2023 The Chieftain paid Sophie for the event that occurred earlier in the month. 6/27/2023 Amazon paid Sophie $10,000 in advance for mocktails to be made for an event at the Spheres on 7/7/23. Sophie purchased a $1,500 credit card machine (equipment) with cash to boost sales at upcoming events. All future credit card sales will incur a 3% transaction fee. Sophie was asked to cater for a Seattle Storm event. She earned $4,500 all from credit card sales. $2,700 of inventory was used. 6/29/2023 6/30/2023 Paid wages to employees for June totaling $1,250. 6/30/2023 Sophie paid a dividend of $100 each to her four investor friends ($400 total). The following data are available for adjusting entries at the end of April 2023: 6/30/2023 Record insurance expense for June. 6/30/2023 Record interest expense for June on the bank loan. 6/30/2023 Records show customers used $200 of gift cards to purchase drinks costing $75 to make. 6/30/2023 Sophie's business had a water (utility) bill of $750 unpaid at end of the month. 6/30/2023 Record total depreciation on the truck, register, and credit card machine of $500. 6/30/2023 Sophie's employee counted all remaining supplies. $25 remained ready for use. 6/30/2023 Sophie calculated (but did not pay yet) tax expense of $600. When recording these activities, only use account titles discussed in class and used in your homework (i.e., do not create new account names). During June 2023 the following activities occurred: 6/1/2023 Sophie borrowed $80,000 with 6% interest from HomeStreet Bank to start her business. 6/1/2023 Sophie contacted 4 friends, each of which contributed $25,000 to her business venture. 6/2/2023 Sophie purchased a food truck, including a cash register, retrofitted for her specific business costing $75,000. Sophie wants to classify the long-term asset as Equipment in her books. 6/2/2023 $600 was paid in advance for 1 year of insurance. 6/3/2023 Purchased supplies costing $500 from Best Buy, paying $100 cash and putting the rest on account. 6/4/2023 Paid $90 for a newspaper advertisement that was also printed on 6/4. 6/5/2023 In preparation for all upcoming events, Sophie purchased $16,000 of inventory (food, promotional cups with logo, etc.). Sophie's first event was for Seattle University. She earned $2,500 all from cash sales. $1,100 of 6/8/2023 inventory was used. When Sophie counted the cash at the end of the day only $2,490 was in the register. 6/9/2023 6/10/2023 6/11/2023 One of Sophie's employees noticed that a cooler was left open during the night and $675 of inventory was spoiled (i.e., obsolete). Paid cash for half of office supplies purchased on credit earlier in the month. Sophie's second event was for a community charity event in which she did not charge for any of her drinks. Sales would have been $2,000. $700 of inventory was still used for the cause. Sophie worked an event for the Seattle Mariners for $8,000 with a promise to pay and terms of 2/10, n/30. COGS totaled $3,000. 6/12/2023 6/13/2023 Sophie contracted with the Chieftain and sold $1,000 of drinks costing $400. The Chieftain didn't pay that night, but agreed to terms with Sophie of 2/10, n/30 before closing up. 6/14/2023 Purchased additional inventory for $4,000 on account. 6/15/2023 Sophie's employee sold 2 gift cards for $150 each. No beverages were sold at this time. Returned $300 of groceries from the 6/14 transaction. Sophie accidentally bought bananas not 6/16/2023 plantains (and the store accepted the return b/c of the simple mistake). Sophie and her employee canvased the Freemont Solstice Parade and sold $400 worth of 6/17/2023 promotional cups (inventory) with Sophie's logo on them for $500 all on account. No sales discounts were offered but all customers promised to pay by 7/15/23. A couple of customers from 6/17/23 returned $40 worth of cups. Sophie accepted the return and waived the $50 owed. 6/28/2023 6/18/2023 6/21/2023 The Mariners paid for the event that occurred earlier in the month. 6/24/2023 The Chieftain paid Sophie for the event that occurred earlier in the month. 6/27/2023 Amazon paid Sophie $10,000 in advance for mocktails to be made for an event at the Spheres on 7/7/23. Sophie purchased a $1,500 credit card machine (equipment) with cash to boost sales at upcoming events. All future credit card sales will incur a 3% transaction fee. Sophie was asked to cater for a Seattle Storm event. She earned $4,500 all from credit card sales. $2,700 of inventory was used. 6/29/2023 6/30/2023 Paid wages to employees for June totaling $1,250. 6/30/2023 Sophie paid a dividend of $100 each to her four investor friends ($400 total). The following data are available for adjusting entries at the end of April 2023: 6/30/2023 Record insurance expense for June. 6/30/2023 Record interest expense for June on the bank loan. 6/30/2023 Records show customers used $200 of gift cards to purchase drinks costing $75 to make. 6/30/2023 Sophie's business had a water (utility) bill of $750 unpaid at end of the month. 6/30/2023 Record total depreciation on the truck, register, and credit card machine of $500. 6/30/2023 Sophie's employee counted all remaining supplies. $25 remained ready for use. 6/30/2023 Sophie calculated (but did not pay yet) tax expense of $600. When recording these activities, only use account titles discussed in class and used in your homework (i.e., do not create new account names).

Answer rating: 100% (QA)

To record the financial transactions and prepare the financial statements for Sophies Sensational Syrups for the month of June 2023 we will need to analyze each transaction and create journal entries ... View the full answer