The following information relates to Shelby Simms business for the month of June, 2020: Jun

The following information relates to Shelby Simms business for the month of June, 2020: Jun. 1 Ms. Simms books showed the following balances brought forward from May 31st, 2020; Loan (Due 2024) $2,500,000; Cash $1,500,000; Inventory $350,000; Bank $900,000; Land and building $2,000,000; Motor vehicle $950,000 Jun. 2 Paid rent for June by cheque $120,000. Jun. 3 Purchased of office furniture by cheque $150,000. Jun. 3 Bought goods by cheque $175,000. Jun. 4 Sold goods for cash $800,000. Jun. 5 Sold goods on credit to Kemp $100,000. Jun. 5 Sold goods on credit to Jane $25,000. Jun. 6 Kemp settled his account with cash receiving a 5% cash discount. Jun. 6 Jane returned $10,000 worth of goods Jun. 7 Bought goods on credit from Masters $250,000. Jun. 10 Bought stationery for cash $35,000. Jun. 11 Paid wages by cash $95,000. Jun. 13 Returned goods to Masters $50,000. Jun. 15 Bought goods on credit from Generals $166,000. Jun. 16 Sold goods for cash $100,000 Jun. 18 Lodged cash of $60,000 to the business bank account. Jun. 20 Paid Masters by cheque in full settlement of the balance outstanding having received a discount of $3,000. Jun. 23 Purchased equipment by cheque $170,000. Jun. 25 Paid staff salaries by cheque $40,000 Jun. 26 Commission Received $90,000 by cheque. Jun. 27 Purchased goods on credit from Sills for $85,000. Jun. 30 Proprietor withdrew Cash of $20,000 for personal use. REQUIRED: 1. Journalize the transactions for the month. (26 marks) 2. Post the above transactions in the relevant ledgers (45 marks) 3. Extract a trial balance as at June 30 2020. (13 marks) 4. Prepare an adjusted trial balance with the following information: · The Closing Inventory at cost is $400,000. (Do not Journalize) · The monthly rental expense is $100,000. · One employee complained that their salary was short by $2,000. Investigation proved that the employee was indeed short paid for the month. · The Loan has an interest rate of 12% per annum (1% per month) which has not yet been accounted for. Insurance of $50,000 per month for the motor vehicle has not yet been paid. · Depreciation for the motor vehicle has not been taken into account. The business uses the straight line method at a rate of twenty percent (24%) per annum (2% per month). NB – Show the Ledger and Journal Entries for each Adjusting Entry. (23 marks) 5. · Prepare the Income Statement and Balance Sheet for the period under review. (40 marks) 6. Briefly comment on the performance of the business. (3 marks)