Jordan River Laundry, a sole proprietorship service business, started on September 2, 2021. The company reports...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Jordan River Laundry, a sole proprietorship service business, started on September 2, 2021. The company reports on a monthly basis. The following are the transactions that transpired during the month of September. Sep 2 Sep Sep Sep Sep Sep Sep Sep Sep Sep The initial investments of Mr. Jordan were: 120,000 35,000 _22,500 4,200 5,000 Cash Laundry Equipment Furniture & Fixtures Office Supplies Laundry Supplies 8 Bought dryers and spinners from Mirzi Outlet for 40,000. Jordan paid 30% downpayment and the balance on account. 10 Laundry services rendered totaled 195,000, of which 40% on account. 12 Received proceeds of 220,000 from a bank loan for business use. Jordan would use this to purchase a van for pick-up and delivery of laundry from and to clients. 14 Purchased a delivery van from Renzo Motors for 250,000. Jordan used the entire proceeds from the bank loan to pay for the delivery van and the balance on account. 15 Paid various operating expenses during the month: water and electricity, 28,000; telephone expense, 6,000; and repairs expense, 3,500. 18 Laundry services rendered totaled 180,000, of which 30% was settled with a note and the balance on account. 20 Received laundry advances from Madeleine Hotel for services to be rendered next month, 90,000. 22 Collected 90% of the outstanding receivable from September 10 transaction. 26 Purchased detergents and fabric conditioners from Ivana Cleaning Scents, 12,000. Paid 8,000 cash and the balance on account. Sep Sep 29 Sep 30 28 Returned 2,000 worth of damaged detergents and fabric conditioners bought last September 26. Mr. Jordan withdrew 3,000 for personal use. Paid wages of two staff, 10,000 each. The following pieces of information were obtained regarding accounts that require adjusting entries: Notes Receivable - it bears an interest of 10% and has a term of 45 days. Loan Payable - it bears an interest of 12% and has a term of 180 days. Laundry Supplies - 80% of the laundry supplies, net of returns, were used up in September. Office Supplies - 40% of the office supplies remained unused at the end of September. Furniture and Fixtures - it is the policy of the company to depreciate furniture and fixtures using the following terms: no salvage value, useful life of 5 years, and full month depreciation on the month of purchase. Laundry Equipment - it is the policy of the company to depreciate laundry equipment using the following terms: 10% salvage value, useful life of 5 years, and full month depreciation on the month of purchase. Delivery Vehicle - it is the policy of the company to depreciate delivery vehicles using the following terms: 10% salvage value, useful life of 10 years, and full month depreciation on the month of purchase. Accounts Receivable - Doubtful Accounts are estimated at 2% of the outstanding accounts receivable. CHART OF ACCOUNTS Cash Doubtful Accounts Expense Utilities Payable Laundry Equipment Prepaid Rent Furniture & Fixture Allowance for Doubtful Accounts Laundry Supplies Accounts Payable Loan Payable Notes Payable Repairs Expense Interest Receivable Depreciation Expense Interest Payable Delivery Vehicle Laundry Services Revenue Office Supplies Acc. Depreciation - Laundry Equipment Jordan, Capital Acc. Depreciation - Furniture & Fixtures Laundry Supplies Expense Wages Expense Advances from Clients Notes Receivable Interest Income Acc. Depreciation - Delivery Vehicle Office Supplies Expense Accounts Receivable Utilities Expense Jordan, Drawing Interest Expense REQUIREMENTS: 1. JOURNALIZE ALL TRANSACTIONS IN THE JOURNAL PAPER. 2. POST TO THE LEDGER IN A LEDGER PAPER. 3. MAKE AN UNADJUSTED TRIAL BALANCE IN THE WORKSHEET. 4. JOURNALIZE ADJUSTING ENTRIES AND POST THEM TO THE LEDGER AND IN THE WORKSHEET. 5. MAKE ADJUSTED TRIAL BALANCE IN THE WORKSHEET 6. EXTEND TO THE INCOME STATEMENT AND BALANCE SHEET COLUMNS IN THE WORKSHEET. 7. JOURNALIZE CLOSING ENTRIES AND POST THEM TO THE LEDGER AND IN THE WORKSHEET. 8. MAKE A POST-CLOSING TRIAL BALANCE IN THE WORKSHEET. 9. JOURNALIZE REVERSING ENTRIES. Jordan River Laundry, a sole proprietorship service business, started on September 2, 2021. The company reports on a monthly basis. The following are the transactions that transpired during the month of September. Sep 2 Sep Sep Sep Sep Sep Sep Sep Sep Sep The initial investments of Mr. Jordan were: 120,000 35,000 _22,500 4,200 5,000 Cash Laundry Equipment Furniture & Fixtures Office Supplies Laundry Supplies 8 Bought dryers and spinners from Mirzi Outlet for 40,000. Jordan paid 30% downpayment and the balance on account. 10 Laundry services rendered totaled 195,000, of which 40% on account. 12 Received proceeds of 220,000 from a bank loan for business use. Jordan would use this to purchase a van for pick-up and delivery of laundry from and to clients. 14 Purchased a delivery van from Renzo Motors for 250,000. Jordan used the entire proceeds from the bank loan to pay for the delivery van and the balance on account. 15 Paid various operating expenses during the month: water and electricity, 28,000; telephone expense, 6,000; and repairs expense, 3,500. 18 Laundry services rendered totaled 180,000, of which 30% was settled with a note and the balance on account. 20 Received laundry advances from Madeleine Hotel for services to be rendered next month, 90,000. 22 Collected 90% of the outstanding receivable from September 10 transaction. 26 Purchased detergents and fabric conditioners from Ivana Cleaning Scents, 12,000. Paid 8,000 cash and the balance on account. Sep Sep 29 Sep 30 28 Returned 2,000 worth of damaged detergents and fabric conditioners bought last September 26. Mr. Jordan withdrew 3,000 for personal use. Paid wages of two staff, 10,000 each. The following pieces of information were obtained regarding accounts that require adjusting entries: Notes Receivable - it bears an interest of 10% and has a term of 45 days. Loan Payable - it bears an interest of 12% and has a term of 180 days. Laundry Supplies - 80% of the laundry supplies, net of returns, were used up in September. Office Supplies - 40% of the office supplies remained unused at the end of September. Furniture and Fixtures - it is the policy of the company to depreciate furniture and fixtures using the following terms: no salvage value, useful life of 5 years, and full month depreciation on the month of purchase. Laundry Equipment - it is the policy of the company to depreciate laundry equipment using the following terms: 10% salvage value, useful life of 5 years, and full month depreciation on the month of purchase. Delivery Vehicle - it is the policy of the company to depreciate delivery vehicles using the following terms: 10% salvage value, useful life of 10 years, and full month depreciation on the month of purchase. Accounts Receivable - Doubtful Accounts are estimated at 2% of the outstanding accounts receivable. CHART OF ACCOUNTS Cash Doubtful Accounts Expense Utilities Payable Laundry Equipment Prepaid Rent Furniture & Fixture Allowance for Doubtful Accounts Laundry Supplies Accounts Payable Loan Payable Notes Payable Repairs Expense Interest Receivable Depreciation Expense Interest Payable Delivery Vehicle Laundry Services Revenue Office Supplies Acc. Depreciation - Laundry Equipment Jordan, Capital Acc. Depreciation - Furniture & Fixtures Laundry Supplies Expense Wages Expense Advances from Clients Notes Receivable Interest Income Acc. Depreciation - Delivery Vehicle Office Supplies Expense Accounts Receivable Utilities Expense Jordan, Drawing Interest Expense REQUIREMENTS: 1. JOURNALIZE ALL TRANSACTIONS IN THE JOURNAL PAPER. 2. POST TO THE LEDGER IN A LEDGER PAPER. 3. MAKE AN UNADJUSTED TRIAL BALANCE IN THE WORKSHEET. 4. JOURNALIZE ADJUSTING ENTRIES AND POST THEM TO THE LEDGER AND IN THE WORKSHEET. 5. MAKE ADJUSTED TRIAL BALANCE IN THE WORKSHEET 6. EXTEND TO THE INCOME STATEMENT AND BALANCE SHEET COLUMNS IN THE WORKSHEET. 7. JOURNALIZE CLOSING ENTRIES AND POST THEM TO THE LEDGER AND IN THE WORKSHEET. 8. MAKE A POST-CLOSING TRIAL BALANCE IN THE WORKSHEET. 9. JOURNALIZE REVERSING ENTRIES.
Expert Answer:
Answer rating: 100% (QA)
1 Journal Entries 2 Unadjusted Trial Balance 3 Adjusting Entries 4 Adjusted Trial Bala... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
Posted Date:
Students also viewed these accounting questions
-
Jen and Berry's sells ice-creams from its factory-shop in Petone. There is a managing director (Maynard Dibble), a marketing manager (Mary Salman) and a production manager (Peter Pritchard). Maynard...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Strike Bowling installs automatic scorekeeping equipment with an invoice cost of $180,000. The electrical work required for the installation costs $8,000. Additional costs are $3,000 for delivery and...
-
Benz Corporation produces a filter that has a per unit cost of $18. The company would like a 30% markup. Using cost-plus pricing, determine the per unit selling price.
-
Some multicomputers allow running processes to be migrated from one node to another. Is it sufficient to stop a process, freeze its memory image, and just ship that off to a different node? Name two...
-
Sales Discounts Not Taken} Assume the same information as in Brief Exercise 5-42: Gordon's Grocers purchases bread from Buddy's Bread Company at \(\$ 1.45\) per loaf. Gordon's engaged in a customer...
-
The adjusted trial balance of Penny OHara Dance Studio Company follows: Requirements 1. Prepare the classified balance sheet of Penny OHara Dance Studio Company at August 31, 2016. Use the report...
-
a car and a train both travelled 200 km. the speed of the car was 30km/hr faster than the speed of the train. if the car took 40 minutes less to travel than 200 km, what was the speed of the car to...
-
JOB ANALYSIS AND DESIGN Case Study: How Google Searches for the Right Job Requirements Each year, around 2.5 million people apply to work at Googleabout 60 rsums for every current employee. What...
-
The following is total monthly budgeted cost and activity information for the four activity centers in the billing department of Oregon Power Company: Activity Center Cost Driver Statement inquiry...
-
You decided to use attributes sampling in your testing of Frederics Clothings sales procedures for the year ended July 31, 198X. The client has a straightforward system that in previous years has...
-
The determination of a sampling distribution requires a population with a known mean, standard deviation, sample size, and knowledge of the population distribution. In practice, the auditor is...
-
Identify the four ways the auditor can change evidence in a particular engagement. For each of the four, state a circumstance that may affect the decision.
-
Calculate the confidence limits of the population mean at a confidence level of 95% if one sample of 100 items resulted in a point estimate of the mean of \($937\) and a standard error of the mean of...
-
State the relationship between analytical tests, tests of transactions, and direct tests of balances.
-
The president of the United States is commander-in-chief of the U.S. military I believe that the president has Legitimate power. I say this because in the textbook it shows that those with legitimat
-
On March 31, 2018, Gardner Corporation received authorization to issue $30,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated...
-
The comparative balance sheets for Hinckley Corporation show the following information. Additional data related to 2014 are as follows. 1. Equipment that had cost $11,000 and was 40% depreciated at...
-
Use the information presented in BE7-11 for Arness Woodcrafters but assume that the recourse liability has a fair value of $4,000, instead of $8,000. Prepare the journal entry and discuss the effects...
-
Gonzalez Equipment Company sold 600 Rollomatics during 2014 at $4,000 each. During 2014, Gonzalez spent $30,000 servicing the 2-year warranties that accompany the Rollomatic. All applicable...
-
Define various cost equations (Learning Objective 2) Write the cost equation for each of the following cost behaviors. Define the variables in each equation. a. Fixed b. Mixed c. Variable
-
Predict total mixed costs (Learning Objective 2) Ritter Razors produces deluxe razors that compete with Gillette's Mach line of razors. Total manufacturing costs are \(\$ 100,000\) when 20,000...
-
Prepare and analyze a scatter plot (Learning Objective 3) Lube-for-Less is a car care center specializing in ten-minute oil changes. Lube-for-Less has two service bays, which limits its capacity to...
Study smarter with the SolutionInn App