Question
1. The following transactions occurred for Jackson Properties, Inc. during June 2022. Using the space provided below, record each transaction in proper journal entry format.
1.
The following transactions occurred for Jackson Properties, Inc. during June 2022. Using the space provided below, record each transaction in proper journal entry format. A written explanation for each journal entry is not required.
June 1 | Jackson prepaid advertising to a local radio station for 7 months totaling $700 ($100 month). |
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June 8 | Accepted $500 of advance payments from customers for services to be provided in July. |
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June 15 | Billed customers for $1,500 services provided in June. Payment is due in 30 days. |
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June 20 | Received $500 from customers who were billed on June 15. |
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June 30 | Received, but did not pay, the June utility bill of $300. Payment will be made in July. |
2.
Refer back to Jackson Properties from Problem #4. Assume it is now the end of June. Using the table below, calculate Jacksons net income (or net loss) for the month of June under cash-basis accounting and under accrual-basis accounting. If there is no impact for a transaction, you can leave the cell blank or put $0. For an expense, please specifically use a negative (-) sign or put the expense in (parentheses/brackets).
Date | Cash-Basis Accounting | Accrual-Basis Accounting |
June 1
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June 8
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June 15
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June 20
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June 30
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Total Net Income or (Loss)
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