Danny and Brice paid $2,400 to an advertising firm to design and host a website for one year (May 2018 to April 2019). They also paid the firm to design and mail out flyers for them at a cost of $800 on May 15. Also, thanks to Brice’s dad co-signing for the loan, they were able to secure a 5 year small business loan from the bank for $75,000 at 6% interest, with the interest being due every May 1 beginning May 1, 2019. With the help of the loan and the inheritance they were able to buy some important stuff needed to run their business.
They picked out all they wanted and purchased the following on May 1 – shelves and cases to display the drones for sell was $1,200. The useful life of the shelves/cases is 5 years with no salvage value. They also purchased a computer for $2,500 that are expected to last 4 years with a $100 salvage value. They purchased office supplies (e.g. receipt paper, ink, staples, paper clips, pens, pencils, post-its, etc.) for $450 on May 1. When Brice counted the supplies on May 31, the remaining amount was $175.
An adjusted trial balance for June. Be sure to review how an adjusted trial balance is prepared, and the format of an adjusted trial balance.