June 1

June 1
June 1

June 1
June 2
June 2
June 2

June 3

June 4
June 4

June 5

June 7

June 8
June 11
June 11

June 12
June 13

June 13

June 15
June 15
June 16
June 17

June 17
June 18
June 20

June 20

June 22
June 23
June 23
June 24

June 25
June 26
June 27
June 27

June 28

June 29
June 29

June 29
June 30

June 30
*All purchases of inventory on account terms of 2/15, n/30
**All credit sales have terms of 2/30, n/45

June Month-end Adjustments:

(A)

(B)

(C)

(D)

(E)

(F)

Signed a one-year 18.5%, $180,000 note payable with First Bank.

Purchased 3,000 GPS units on Credit from Navistar for $35.00 per unit.
Issued 5,500 shares of common stock for $11 per share (Refer to General ledger for description of
common stock).
Sold 2,000 DVD players on account to Toyota for $75 per units, Invoice #5555.
Sold 3,500 GPS units on account to Kia for $52 per unit, Invoice #5556.
Purchases office supplies from Office Max on credit for $1,200.
Sold 900 docking stations for $64 per unit and 1950 GPS units for $83 per unit on account to Nissan,
Invoice #5560.

The Board of Directors declared a cash dividend of $5 per share for shareholders of record on June 5th
payable on June 12th.
Received payment from Toyota for May 11th sale
Rented part of the warehouse to a new tenant and received $4,900 for three months rent (June, July,
August).
Paid $2,100 to Michigan Utility Co. for utilities bill that was recorded in May as an Account Payable,
Check #5278.

Received and paid expense reports for travel and entertainment totaling $925, Check #5279.
Paid for office supplies purchased on June 2nd, Check #5280.
Paid in full for the June 1 purchase from Navistar, Check #5281.
Received a bill from the law firm of Larry, Moe & Curly for $5,400, payable upon receipt, for bond
consulting fees, Check #5282.
Paid the dividend that was declared on June 3, Check #5283.

Took advantage of a special deal to purchase 3,250 DVD players on account from JVC for $48 per unit.
Purchased 850 GPS units on credit from Magellan for $33 per unit.

Sold 2,000 DVD players on credit to Fort Motor Co. for $89.00 per unit, Invoice 5557.
Check # 5284 was issued for payroll: $14,500 for salaried and $4,750 for wages.
Purchased 1,800 docking stations on credit from Samsung for $42 per unit.

Issued a credit to Kia for the return of 350 defective units from the June 2nd sale. These units has a co
basis of $35 per unit.
Returned the 350 defective units received from Kia to Navistar.
Received payment in full from Toyota for the June 1st sale.

While inspecting the June 13th purchase, it was discovered that the GPS units were programmed for
South America instead of North America. AC Speed returned the entire order to Magellan.
A bankruptcy judge disallowed AC Speed's claim for $5,000 due from General Motors. Management
Decided to write off this accounts receivable.
Sold 1,650 docking stations on credit to Kia for $64.50 per unit, Invoice #5559.
Paid $75,000 of the $162,500 owed to JVC from May 25, Check #5285.
Received payment from Ford Motor Co. for $175,000 of the $300,000 owed from May 5.
Purchased a $100 international phone card for one of the sales representative's upcoming European
business trip, Check #5286.
Paid in full for the purchase from JVC on June 13, Check #5287
Purchased 1,250 docking station from Samsung for $41 per unit paying in cash, Check #5288
Sold 1,500 docking stations on credit to Honda for $61 per unit, Invoice 5558.

Hired and paid a consultant $75,000 to devise a marketing plan. AC Speed's management felt this wa
necessary to develop brand awareness. Check #5289.
AC Speed is behind in its mortgage payments to Bank of America. Paid a total of $10,000 ($2,000
principal and $8,000 interest), Check #5290.
Received payment in full from Honda for the June 27th transaction.
Paid in full for the purchase from Magellan on May 31st, Check #5291.

Check #5292 was issued for payroll: $14,500 for salaries and $4,750 for wages.
Paid the first month's principal payment of $15,000 on the note payable. In addition, paid one month
interest, Check #5293
Issued bonds payable at face value for $350,000

purchases of inventory on account terms of 2/15, n/30

credit sales have terms of 2/30, n/45

e Month-end Adjustments:

AC Speed has earned one month of the prepaid rent received from their tenant at the beginning of Jun
The Company took a physical count of Office Supplies on June 30 and found the following to be on
hand:
Office Supplies - $2,465

AC Speed estimates bad debt expense on a monthly basis rather than waiting until year-end. The
company uses the allowance method. Based on recent industry estimates, AC Speed estimates that th
allowance account should be 2.5% of accounts receivable.

The Company took a physical inventory count on June 30 and found the following inventory on hand:
Merchandise Inventory - $122,221
The Balance in the prepaid insurance account at the beginning of June represents 4 months of
coverage. Record the amount of insurance for June.
Depreciation on the company's fixed assets for the month of June is as follows:

1. The furniture and equipment for the warehouse was purchased a few years ago for $10,000. These
assets have a 5-year life, an expected salvage value of $1,000, and are depreciated using the straight
line method.
2. The furniture and equipment for the office was purchased last year for $8,500. these assets have a
year life, an expected salvage value of $1,500, and are depreicated using stright-line method.