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1. What are the 8 adjusting entries? b.) How many adjusting entries for deferrals are recorded? c.) How many adjusting entries for accruals are recorded?

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1. What are the 8 adjusting entries?

b.) How many adjusting entries for deferrals are recorded?

c.) How many adjusting entries for accruals are recorded?

Additional Information for adjusting entries:

Fixed Assets: Property and Equipment are stated on the basis of historical cost. Depreciation of furniture, fixtures and equipment are computed for financial reporting purposes on a straight-line basis, using service lives of 8 years for furniture, 5 years for fixtures, and 4 years for equipment. No salvage value is anticipated.

  1. Salaries are paid to employees on the 1st and 15th of each month. As of July 31, accrued salaries earned but not yet paid totaled $6,675.
  2. There were $250 of Supplies still on hand as of July 31.
  3. At the end of the month, a physical count was taken of inventories. It revealed the following information:

a. Apparel Inventory on hand at the end of the month amounted to $5,075.

b. Gift Inventory on hand at the end of the month totaled $2,585.

Helpful Hints: When calculating interest expense and depreciation expense in your adjusting entries, please do not include anything that happened after the 15th of the month. You are only to include either a full month or a half a month of interest expense and depreciation expense. Please do not calculate by day

GENERAL JOURNAL Date Account Titles Debit Credit 1-Jul Cash 120,000 Common Stock 120,000 1-Jul Prepaid Rent (4500*2) Cash 9,000 9,000 2-Jul Prepaid Advertising 18,000 18,000 Cash 2-Jul Furniture Fixtures Equipment Cash Notes Payable 14,500 8,000 9,200 7,925 23,775 2-Jul Inventory - Apparel Cash Accounts Payable 15,400 4,620 10,780 3-Jul Prepaid Insurance Cash 2,400 2,400 4-Jul Supplies Accounts Payable 800 800 5-Jul Inventory - Gift Accounts Payable 9,410 9,410 6-Jul Accounts Receivables Sales Revenue 3,200 3,200 6-Jul COGS 1,325 Inventory-Apparel Inventory-Gift 880 445 8-Jul Accounts Receivables Cash 3,800 5,700 Sales Revenue 9,500 8-Jul COGS 3,970 Inventory-Apparel Inventory-Gift 2,600 1,370 1,000 9-Jul Cash 1,000 Uneamed Revenue 10-Jul Accounts Payable 10,780 Cash 10,780 4,200 14-Jul Cash Accounts Receivables 4,200 15-Jul Salary Expense 6,750 6,750 Cash 16-Jul Cash 8,950 15,650 Accounts Receivables Sales Revenue 24,600 16-Jul COGS Inventory-Apparel Inventory-Gift 10,150 4,950 5,200 18-Jul Uneamed Revenue Revenue 390 390 18-Jul COGS 225 Inventory-Apparel 225 19-Jul Legal Expenses Accounts Payable 765 765 20-Jul Inventory - Apparel Inventory -Gift Accounts Payable 2,200 1,900 4,100 21-Jul Accounts Payable 3,300 Cash 3,300 24-Jul Dividends Cash 4,500 4,500 25-Jul Cash 100 Uneamed Revenue 100 26-Jul Cash 6,215 Accounts Recievable 6,215 28-Jul Utilites Expense Accounts Payable 500 500 29-Jul Equipment 7,000 7,000 Cash 30-Jul Accounts Receivable Sales Revenue 4,830 4,830 2,090 30-Jul COGS Inventory-Gift Inventory -Apparel 850 1,240 31-Jul Accounts Receivable 5,239 2,821 Cash 8,060 Sales Revenue 31-Jul COGS 3,360 Inventory-Gift Inventory-Apparel 800 2,560 31-Jul Supplies 450 Cash 450 31-Jul Land Cash Note Payable 80,000 20,000 60,000 GENERAL JOURNAL Date Account Titles Debit Credit 1-Jul Cash 120,000 Common Stock 120,000 1-Jul Prepaid Rent (4500*2) Cash 9,000 9,000 2-Jul Prepaid Advertising 18,000 18,000 Cash 2-Jul Furniture Fixtures Equipment Cash Notes Payable 14,500 8,000 9,200 7,925 23,775 2-Jul Inventory - Apparel Cash Accounts Payable 15,400 4,620 10,780 3-Jul Prepaid Insurance Cash 2,400 2,400 4-Jul Supplies Accounts Payable 800 800 5-Jul Inventory - Gift Accounts Payable 9,410 9,410 6-Jul Accounts Receivables Sales Revenue 3,200 3,200 6-Jul COGS 1,325 Inventory-Apparel Inventory-Gift 880 445 8-Jul Accounts Receivables Cash 3,800 5,700 Sales Revenue 9,500 8-Jul COGS 3,970 Inventory-Apparel Inventory-Gift 2,600 1,370 1,000 9-Jul Cash 1,000 Uneamed Revenue 10-Jul Accounts Payable 10,780 Cash 10,780 4,200 14-Jul Cash Accounts Receivables 4,200 15-Jul Salary Expense 6,750 6,750 Cash 16-Jul Cash 8,950 15,650 Accounts Receivables Sales Revenue 24,600 16-Jul COGS Inventory-Apparel Inventory-Gift 10,150 4,950 5,200 18-Jul Uneamed Revenue Revenue 390 390 18-Jul COGS 225 Inventory-Apparel 225 19-Jul Legal Expenses Accounts Payable 765 765 20-Jul Inventory - Apparel Inventory -Gift Accounts Payable 2,200 1,900 4,100 21-Jul Accounts Payable 3,300 Cash 3,300 24-Jul Dividends Cash 4,500 4,500 25-Jul Cash 100 Uneamed Revenue 100 26-Jul Cash 6,215 Accounts Recievable 6,215 28-Jul Utilites Expense Accounts Payable 500 500 29-Jul Equipment 7,000 7,000 Cash 30-Jul Accounts Receivable Sales Revenue 4,830 4,830 2,090 30-Jul COGS Inventory-Gift Inventory -Apparel 850 1,240 31-Jul Accounts Receivable 5,239 2,821 Cash 8,060 Sales Revenue 31-Jul COGS 3,360 Inventory-Gift Inventory-Apparel 800 2,560 31-Jul Supplies 450 Cash 450 31-Jul Land Cash Note Payable 80,000 20,000 60,000

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