Question
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?
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.
- 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.
- There were $250 of Supplies still on hand as of July 31.
- 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 60,000Step by Step Solution
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