(Solved): The following additional information is available June 30, 2024: (i) Store Supplies on hand on June ...

The following additional information is available June 30, 2024: (i) Store Supplies on hand on June 30, 2024, amounted to \( \$ 600,000 \). (iI) Insurance was paid on July 1, 2023, for the 13-months to July 31, 2024, at \( \$ 250,000 \) per month. (iii) Prepaid rent expired June \( 30^{\text {th }}, 2024 \), amounts to \( \$ 550,000 \) (iv) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of \( \$ 40,000 \). (v) The machinery cost includes two coffee processing machines purchased for \( \$ 1,800,000 \) each by the company on July 1, 2020. The double-declining balance method of depreciation is used to compute the machinery's depreciation charges and their expected useful life is 10 years or 100,000 beans. In 2020, 5,000 beans were sold, 6,500 in 2021, 11,500 in 2022, 12,800 in 2023 and 15,900 sold in 2024. The residual value on both machines is \( \$ 10,000 \) each. On January 1, 2024, the company sold one of the coffee processing machines for \( \$ 600,000 \) cash. (vi) Salaries earned by employees and not yet paid amounted to \( \$ 395,000 \) on June 30, 2024. (vii) Accrued interest expense as of June 30, 2024, \$102,500. (viii) On June 30, 2024, \( 90 \% \) of the previously unearned sales revenue had been earned. (ix) The aging of the Accounts Receivable schedule on June 30, 2024, indicated that the Allowance for Bad Debts should be \( 12 \% \) of Accounts Receivables. (x) A physical count of inventory was done on June 30, 2024, after making all the other adjustments and this revealed that there was \( \$ 2,800,000 \) worth of inventory on hand at this point. Other data: (xi) The business is expected to make principal payments totalling \( \$ 650,000 \) towards the Loan during the fiscal year to June 30, 2025. Required: a) Prepare the necessary adjusting journal entries on June 30, 2024. [Narrations are not required] b) Prepare the Adjusted Trial balance for the period ending June 30, 2024. c) Using the Adjusted trial balance, generate the statements requested by the company for the year ended June 30, 2024: 1. Multiple-step income statement. 2. Statement of owner's equity. 3. Classified balance sheet. Prepare the closing entries at year end Prepare the Post closing trail balance. The following additional information is available June 30, 2024: (i) Store Supplies on hand on June 30, 2024, amounted to \( \$ 600,000 \). (iI) Insurance was paid on July 1, 2023, for the 13-months to July 31, 2024, at \( \$ 250,000 \) per month. (iii) Prepaid rent expired June \( 30^{\text {th }}, 2024 \), amounts to \( \$ 550,000 \) (iv) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of \( \$ 40,000 \). (v) The machinery cost includes two coffee processing machines purchased for \( \$ 1,800,000 \) each by the company on July 1, 2020. The double-declining balance method of depreciation is used to compute the machinery's depreciation charges and their expected useful life is 10 years or 100,000 beans. In 2020, 5,000 beans were sold, 6,500 in 2021, 11,500 in 2022, 12,800 in 2023 and 15,900 sold in 2024. The residual value on both machines is \( \$ 10,000 \) each. On January 1, 2024, the company sold one of the coffee processing machines for \( \$ 600,000 \) cash. (vi) Salaries earned by employees and not yet paid amounted to \( \$ 395,000 \) on June 30, 2024. (vii) Accrued interest expense as of June 30, 2024, \$102,500. (viii) On June 30, 2024, \( 90 \% \) of the previously unearned sales revenue had been earned. (ix) The aging of the Accounts Receivable schedule on June 30, 2024, indicated that the Allowance for Bad Debts should be \( 12 \% \) of Accounts Receivables. (x) A physical count of inventory was done on June 30, 2024, after making all the other adjustments and this revealed that there was \( \$ 2,800,000 \) worth of inventory on hand at this point. Other data: (xi) The business is expected to make principal payments totalling \( \$ 650,000 \) towards the Loan during the fiscal year to June 30, 2025. Required: a) Prepare the necessary adjusting journal entries on June 30, 2024. [Narrations are not required] b) Prepare the Adjusted Trial balance for the period ending June 30, 2024. c) Using the Adjusted trial balance, generate the statements requested by the company for the year ended June 30, 2024: 1. Multiple-step income statement.