1 Transaction Entries, Posting, Trial Balance, and Adjusting Entries The Wellness Catering Service had the following transactions in July, its first month of operations Kelly Foster contributed personal funds in exchange for common stock to begin the business. $40,000 2 Purchased the following for cash: (make a compound entry): Delivery van 3,780 Equipment 3,240 Supplies 5,600 3 Paid one-year premium on liability insurance policy 5,100 4 Entered into a contract with a local service club to cater weekly luncheon meetings for one year at $790 per month. Received 6 months fees in advance 4,740 5 Paid rent for July, August, and September 6,345 6 Paid employee's two weeks' wages (five-day week) 5,700 7 Billed customers for services rendered 8,500 8 Purchased supplies on account 7,400 9 Paid employee's two weeks' wages 5,700 10 Paid July bill for gas, oil and repairs on delivery van 730 11 Collected on account from customers 7,700 12 Billed customers for services rendered 8,800 13 Foster received a dividend 5,900 Required Using the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Rent; Prepaid Insurance; Delivery Van; Accumulated Depreciation-Delivery Van; Equipment; Accumulated Depreciation- Equipment; Accounts Payable; Wages Payable; Unearned Catering Fees; Common Stock; Dividends; Retained Earnings; Catering Fees Revenue; Wages Expense; Rent Expense; Supplies Expense; Insurance Expense; Delivery Van Expense; Depreciation Expense-Delivery Van; and Depreciation Expense-Equipment. a. Record July transactions in the general journal. b. Post transactions to the ledger accounts. C. Prepare an unadjusted trial balance as of July 31. d. Record adjusting journal entries in the general journal and post to the ledger accounts in part b. The following information is available on July 31: $4,500 Supplies on hand $910 Accrued wages Estimated life of delivery van(assume van was purchased July 1) 3 years 6 years Estimated life of equipment(assume equipment was purchased July 1) Also, make any necessary adjusting entries for insurance, rent and catering fees indicated by the July transactions. (Assume original transactions occurred July 1.) Journal Entries T-Accounts Unadjusted Trial Balance Adjusted Journal Entries 0 0 0 0 0 0 WELLNESS CATERING SERVICE Unadjusted Trial Balance July 31 Cash $ 33545 $ Accounts Receivable 9600 Supplies 13000 Prepaid Rent 6345 Prepaid Insurance 5100 Delivery Van 3780 Equipment 3240 Accounts Payable 0 Unearned Catering Fees 0 Common Stock 0 Dividends 0 Catering Fees Revenue 0 Delivery Van Expense 730 Wages Expense 11400 Totals $ 0 $ 0 7400 4740 40000 5900 17300 0 0 0 Check (1) $ 40000 $ 0 0 40000 July Cash Common Stock To record issuance of common stock. Delivery Van Equipment Supplies Cash (2) 3780 0 3240 0 5600 0 0 12620 (3) 5100 0 0 5100 (4) 4740 0 0 4740 (5) 6345 0 0 6345 To record purchase of delivery van, equipment and supplies for cash. Prepaid Insurance Cash Paid one-year premium on liability insurance. Cash - Unearned Catering Fees Received 6-months advance payment for services. Prepaid Rent Cash To record rent payment for July, August and September. Wages Expense . Cash To record 2-week wages paid. Accounts Receivable Catering Fees Revenue Billed customers for service. Supplies Accounts Payable (6) 5700 0 o 5700 (7) 8500 0 0 8500 (8) 7400 0 0 7400 To record 2-week wages paid. Accounts Receivable (7) 8500 0 Catering Fees Revenue A 0 8500 Billed customers for service. (8) 7400 o A 7400 O (9) 5700 0 - 0 5700 Supplies Accounts Payable To record supplies purchased on account. Wages Expense Cash To record 2-week wages paid. Delivery Van Expense Cash To record payments for gas, oil, and repairs on delivery van. Cash - (10) 730 0 A 0 730 (11) 7700 0 Accounts Receivable A 0 7700 Collection on account from customers. Accounts Receivable (12) 8800 0 Catering Fees Revenue - 0 8800 Billed customers for service. Dividends - (13) 5900 0 Cash - 0 5900 To record Dividend paid. 1 Transaction Entries, Posting, Trial Balance, and Adjusting Entries The Wellness Catering Service had the following transactions in July, its first month of operations Kelly Foster contributed personal funds in exchange for common stock to begin the business. $40,000 2 Purchased the following for cash: (make a compound entry): Delivery van 3,780 Equipment 3,240 Supplies 5,600 3 Paid one-year premium on liability insurance policy 5,100 4 Entered into a contract with a local service club to cater weekly luncheon meetings for one year at $790 per month. Received 6 months fees in advance 4,740 5 Paid rent for July, August, and September 6,345 6 Paid employee's two weeks' wages (five-day week) 5,700 7 Billed customers for services rendered 8,500 8 Purchased supplies on account 7,400 9 Paid employee's two weeks' wages 5,700 10 Paid July bill for gas, oil and repairs on delivery van 730 11 Collected on account from customers 7,700 12 Billed customers for services rendered 8,800 13 Foster received a dividend 5,900 Required Using the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Rent; Prepaid Insurance; Delivery Van; Accumulated Depreciation-Delivery Van; Equipment; Accumulated Depreciation- Equipment; Accounts Payable; Wages Payable; Unearned Catering Fees; Common Stock; Dividends; Retained Earnings; Catering Fees Revenue; Wages Expense; Rent Expense; Supplies Expense; Insurance Expense; Delivery Van Expense; Depreciation Expense-Delivery Van; and Depreciation Expense-Equipment. a. Record July transactions in the general journal. b. Post transactions to the ledger accounts. C. Prepare an unadjusted trial balance as of July 31. d. Record adjusting journal entries in the general journal and post to the ledger accounts in part b. The following information is available on July 31: $4,500 Supplies on hand $910 Accrued wages Estimated life of delivery van(assume van was purchased July 1) 3 years 6 years Estimated life of equipment(assume equipment was purchased July 1) Also, make any necessary adjusting entries for insurance, rent and catering fees indicated by the July transactions. (Assume original transactions occurred July 1.) Journal Entries T-Accounts Unadjusted Trial Balance Adjusted Journal Entries 0 0 0 0 0 0 WELLNESS CATERING SERVICE Unadjusted Trial Balance July 31 Cash $ 33545 $ Accounts Receivable 9600 Supplies 13000 Prepaid Rent 6345 Prepaid Insurance 5100 Delivery Van 3780 Equipment 3240 Accounts Payable 0 Unearned Catering Fees 0 Common Stock 0 Dividends 0 Catering Fees Revenue 0 Delivery Van Expense 730 Wages Expense 11400 Totals $ 0 $ 0 7400 4740 40000 5900 17300 0 0 0 Check (1) $ 40000 $ 0 0 40000 July Cash Common Stock To record issuance of common stock. Delivery Van Equipment Supplies Cash (2) 3780 0 3240 0 5600 0 0 12620 (3) 5100 0 0 5100 (4) 4740 0 0 4740 (5) 6345 0 0 6345 To record purchase of delivery van, equipment and supplies for cash. Prepaid Insurance Cash Paid one-year premium on liability insurance. Cash - Unearned Catering Fees Received 6-months advance payment for services. Prepaid Rent Cash To record rent payment for July, August and September. Wages Expense . Cash To record 2-week wages paid. Accounts Receivable Catering Fees Revenue Billed customers for service. Supplies Accounts Payable (6) 5700 0 o 5700 (7) 8500 0 0 8500 (8) 7400 0 0 7400 To record 2-week wages paid. Accounts Receivable (7) 8500 0 Catering Fees Revenue A 0 8500 Billed customers for service. (8) 7400 o A 7400 O (9) 5700 0 - 0 5700 Supplies Accounts Payable To record supplies purchased on account. Wages Expense Cash To record 2-week wages paid. Delivery Van Expense Cash To record payments for gas, oil, and repairs on delivery van. Cash - (10) 730 0 A 0 730 (11) 7700 0 Accounts Receivable A 0 7700 Collection on account from customers. Accounts Receivable (12) 8800 0 Catering Fees Revenue - 0 8800 Billed customers for service. Dividends - (13) 5900 0 Cash - 0 5900 To record Dividend paid