You have secured a loan through “PSU Bank”$48 000 principleLength of note: 5 yearsInterest: 1 1/2 % (could be expressed as 1.5%)Appropriateprincipalandaccruedinteresttoberepaidattheendofeachyeartheloanisoutstanding(i.e. thenextpaymentwillbeOctoberofnextyear).Day2Buy office supplies: $100Rent office equipment: $150/month- pay 3 months worthRent office space $1500/month- pay 3 months worth and 1 month security deposit (same dollar amount as the monthly rent)- “Security Deposit” usually listed as an Asset;same amount as one month’s rentSecurebasicinsurance:$100/month-pay6monthsworthNote:eventhoughthesetransactionsoccurredonDay2 anynecessaryadjustmentswillbemadeforthefullmonth.Day 3Hire a receptionist: salary: $275/week- Pay on bi-weekly basis – first pay day is Day 12- Work schedule: Mon-Fri 9am-5pm- Today is the first day of employmentDay 4Provide 120 units of service -70on account and50 for cashYoursellingpriceis$26.50Day 12PayyourreceptionistnowandeverytwoweeksfromhereDay18Collectonallaccountsreceivableoutstanding.Day 30The 3 corporate directors want a dividend payment.Can you? The answer is no why not?Instead since they are also officers of the company pay each of them a salary of $100Usingthe process for a general ledger system prepare the following for your first month of operation:Trial BalanceMake necessary adjustments(Note: The Receptionist calculates $45 of office suppliesare on hand.)Adjusted Trial BalanceClose the books for the month and preparethe following financial statements:Income StatementBalance SheetProduceaPost-closingTrialBalance
