JUNE JOURNAL TRANSACTIONS June 1 Signed a one-year 18.5%, $180,000 note payable with First Bank....

JUNE JOURNAL TRANSACTIONS
June 1	Signed a one-year 18.5%, $180,000 note payable with First Bank.
June 1	Purchased 3,000 GPS units on Credit from Navistar for $35.00 per unit.
June 1	Issued 5,500 shares of common stock for $11 per share (Refer to General ledger for description of common stock).
June 1	Sold 2,000 DVD players on account to Toyota for $75 per units, Invoice #5555.
June 2	Sold 3,500 GPS units on account to Kia for $52 per unit, Invoice #5556.
June 2	Purchases office supplies from Office Max on credit for $1,200.
June 2	Sold 900 docking stations for $64 per unit and 1950 GPS units for $83 per unit on account to Nissan, Invoice #5560.
June 3	The Board of Directors declared a cash dividend of $5 per share for shareholders of record on June 5th, payable on June 12th.
June 4	Received payment from Toyota for May 11th sale
June 4	Rented part of the warehouse to a new tenant and received $4,900 for three months rent (June, July, August).
June 5	Paid $2,100 to Michigan Utility Co. for utilities bill that was recorded in May as an Account Payable, Check #5278.
June 7	Received and paid expense reports for travel and entertainment totaling $925, Check #5279.
June 8	Paid for office supplies purchased on June 2nd, Check #5280.
June 11	Paid in full for the June 1 purchase from Navistar, Check #5281.
June 11	Received a bill from the law firm of Larry, Moe & Curly for $5,400, payable upon receipt, for bond consulting fees, Check #5282.
June 12	Paid the dividend that was declared on June 3, Check #5283.
June 13	Took advantage of a special deal to purchase 3,250 DVD players on account from JVC for $48 per unit.
June 13	Purchased 850 GPS units on credit from Magellan for $33 per unit.
June 15	Sold 2,000 DVD players on credit to Fort Motor Co. for $89.00 per unit, Invoice 5557.
June 15	Check # 5284 was issued for payroll: $14,500 for salaried and $4,750 for wages.
June 16	Purchased 1,800 docking stations on credit from Samsung for $42 per unit.
June 17	Issued a credit to Kia for the return of 350 defective units from the June 2nd sale. These units has a cost basis of $35 per unit.
June 17	Returned the 350 defective units received from Kia to Navistar.
June 18	Received payment in full from Toyota for the June 1st sale.
June 20	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.
June 20	A bankruptcy judge disallowed AC Speed\'s claim for $5,000 due from General Motors. Management Decided to write off this accounts receivable.
June 22	Sold 1,650 docking stations on credit to Kia for $64.50 per unit, Invoice #5559.
June 23	Paid $75,000 of the $162,500 owed to JVC from May 25, Check #5285.
June 23	Received payment from Ford Motor Co. for $175,000 of the $300,000 owed from May 5.
June 24	Purchased a $100 international phone card for one of the sales representative\'s upcoming European business trip, Check #5286.
June 25	Paid in full for the purchase from JVC on June 13, Check #5287
June 26	Purchased 1,250 docking station from Samsung for $41 per unit paying in cash, Check #5288
June 27	Sold 1,500 docking stations on credit to Honda for $61 per unit, Invoice 5558.
June 27	Hired and paid a consultant $75,000 to devise a marketing plan. AC Speed\'s management felt this was necessary to develop brand awareness. Check #5289.
June 28	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.
June 29	Received payment in full from Honda for the June 27th transaction.
June 29	Paid in full for the purchase from Magellan on May 31st, Check #5291.
June 29	Check #5292 was issued for payroll: $14,500 for salaries and $4,750 for wages.
June 30	Paid the first month\'s principal payment of $15,000 on the note payable. In addition, paid one month\'s interest, Check #5293
June 30	Issued bonds payable at face value for $350,000
*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 )	AC Speed has earned one month of the prepaid rent received from their tenant at the beginning of June.
( B )	The Company took a physical count of Office Supplies on June 30 and found the following to be on hand:
	Office Supplies - $2,465
( C )	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 the allowance account should be 2.5% of accounts receivable.
( D )	The Company took a physical inventory count on June 30 and found the following inventory on hand:
	Merchandise Inventory - $122,221
( E )	The Balance in the prepaid insurance account at the beginning of June represents 4 months of coverage. Record the amount of insurance for June.
( F )	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 7 year life, an expected salvage value of $1,500, and are depreicated using stright-line method.

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