#3) 8 Marks Prepare the appropriate journal entries for each situation below. Be sure to show all your work and calculations. a) Jan 1-You received $6,000 cash from a customer for work to be completed later on. b) Jan 1-You paid a $2,400 insurance premium on Jan 1 of the year. The insurance coverage is for one full year (expires Dec 31). c) Jan 1-You purchased a piece of equipment for $13,000 with cash. d) Jan 1-You purchased $2,000 worth of supplies on credit from a vendor. e) Jan 31 - At the end of the month, you completed a portion of the work from "a)" above. The completed work is valued at $2,500 per your contract with the customer. f) Jan 31- Record the insurance expense for the month. g) Jan 31 - Record the equipment depreciation for the month ($500). h) Jan 31-At the end of the month, there was $800 worth of supplies still left on hand. Question #4) 4 Marks Be sure to show all your work. Using the information from Q#3, compute the ending balances for: Unearned Revenues Prepaid Insurance Equipment Accumulated Dep'n - Equipment Make sure to indicate whether it is a net DR or CR. DR or CR DR or CR DR or CR DR or CR Assume the only items impacting the balance in the accounts above are from Q#3 (in other words, no opening balances in accounts or other journal entries) Question #5) 4 Marks Kelly Croft operates a small sole proprietorship (Kelly's Store). Their adjusted trial balance is shown below (Year Ended December 31, 2020): DR CR Accounts Payable Accounts Receivable $5,000 $7,000 Accumulated Depreciation Equipment $22,000 Cash $6,000 Equipment $150,000 Interest Expense $1,500 Interest Income $1,000 Interest Receivable $200 Kelly Croft, Capital $110,000 Kelly Croft, Withdrawal $5,600 Lease Expense $5,800 Prepaid Expenses $1,500 Revenue $35,000 Depreciation Expense $2,000 Salaries Expense $13,000 Salaries Payable $1,000 Supplies $2,900 Supplies Expense $900 Unearned Revenue Utilities Expense TOTAL $25,500 $3,100 $199,500 $199,500 Using the above, prepare all closing journal entries for year-end. Question #6) 2 Marks Using the information from Q #5, prepare the Statement of Changes in Equity. Assume Kelly contributed no cash during the fiscal year. ACCT 122 - Hand-in #2 - LO #3 to 5 Question #1) 6 Marks Prepare the journal entries for "Prairie Consulting" for the month of January: a) Jan 2-The owner, Dewey Cheetham, contributed $2,000 cash to the business bank account and equipment with a $40,000 fair value. b) Jan 6-Purchased $3,100 supplies on credit from a vendor. c) Jan 10 - We received $5,000 in payments from customers for work performed in a prior month. d) Jan 15 - Prairie Consulting performed $4,000 in work for a new customer on credit. e) Jan 20-You received a $500 utility bill from SaskPower. However, you have until early March to pay and will wait to pay until then. f) Jan 23 Dewey withdraws $3,000 at an ATM from the business bank account for personal use. Question #2) 3 Marks Post the above journal entries from Q#1 to the following ledger accounts: Acct Name Accounts Payable Accounts Receivable Cash Dewey Cheetham, Capital Dewey Cheetham, Withdrawals Equipment Revenue Supplies Utilities Expense Opening Normal Balance - $3,500 $6,000 $4,500 $11,000 $0 $3,000 $0 $1,000 $0 HINT: See Exhibit 2.13 in the textbook for an example. You can ignore Account Numbers