3 Prepare adjusting entries using the following information in the General Journal 4 below. Show your calculations! vo a) One month's insurance has expired. 8 b) The remaining inventory of supplies is $300. 10 c) The estimated depreciation on equipment is $125. 12 d) The estimated income taxes are $2700. 15 Date General Joumal Description (Account Name) Debit Credit 11 30 Requirement #5: P 32 Post the adjusting entries to the General Ledger T-accounts and compute adjusted balances. 33 Just add to the balances that are already listed. During its first month of operation, the Quick Tax Corporation, which specializes in tax preparation, completed the following transactions. m it in July 1 Began business by making a deposit in a company bank account of $40,000, in exchange for 4,000 shares of $10 par value common stock. 8 July 3 Paid the current month's rent, $2,500 10 July 5 Paid the premium on a 1-year insurance policy. $3,600 11 12 July 7 Purchased supplies on account from Little Company, $700. 14 July 10 Paid employee salaries, $2,800 16 July 14 Purchased equipment from Lake Company, $9,500. Paid $1,500 down and the balance was placed on account. Payments will be $500.00 per month for 20 months. The first payment is du Note: Use accounts payable for the balance due. 20 July 15 Received cash for preparing tax retums for the first half of July, $6,500 July 19 Made payment on account to Lake Company, $500. 24 July 31 Received cash for preparing tax retums for the last half of July, $8,250 26 July 31 Declared and paid cash dividends of $450. Use the following account names for journal entries. Chart of Accounts: Account Title (Normal Balance) Assets Cash (Debit) Prepaid Insurance (Debit) Supplies (Debit) Equipment (Debit) Accumulated Depreciation - Equipment (Credit) Liabilities Accounts Payable (Credit) Income Tax Payable (Credit) Stockholders' Equity Common Stock (Credit) Retained Eamings (Credit) Dividends (Debit) Revenue Tax Preparation Revenue (Credit) Expenses Rent Expense (Debit) Salaries Expense (Debit) Insurance Expense (Debit) Supplies Expense (Debit) Depreciation Expense (Debit) Income Tax Expense (Debit) 29 Prepare journal entries to record the July transactions in the General Journal below. 32 Date 33 July 1 General Joumal Description (Account Name) Debit Cash 40,000 Common Stock Credit 40,000 36 July 3 Rent Expense Cash 2,500 2,500 39 July 5 Prepaid Insurance Cash 3,600 3,600 41 42 July 7 Supplies Accounts Payable 700 700 45 July 10 Salaries Expense Cash 2,800 2,800 48 July 14 9,500 Equipment Cash Accounts Payable 1,500 8,000 52 July 15 Cash Tax Preparation Revenue 6,500 6,500 55 July 19 Accounts Payable Cash 500 500 58 July 19 59 60 July 31 8,250 8,250 61 Accounts Payable Cash Cash Tax Preparation Revenue Dividends Cash 450 62 July 31 63 450 65 86 74,800 74,800 67 Note: Remember that debits must equal credits All of your joumal entries should balance 68 69 9 $ 10 Cash (111) 40,000.00 $ 6,500.00 $ 8,250.00 $ Tax Preparation Revenue 6.500.00 8,250.00 $ 11 $ 2,500.00 3,600.00 2,800.00 1,500.00 500.00 450.00 Balance: 14750 17 Balance: 43400 20 $ Prepaid Insurance (117) 3,600.00 Rent Expense (511) 2,500.00 Balance: 2500 24 Balance: 3600 27 Supplies (119) 700.00 Salaries Expense (512) 2,800.00 Balance: 2800 Balance: 700 Insurance Expense (513) Equipment (144) 9,500.00 Balance - Pil 37 Balance: 9500 40 Supplies Expense (514) Accumulated Depreciation Equipment (145) 45 Balance - Accounts Payable (212) Depreciation Expense (515) 49 $ 500.00 - 8.000.00 Balance: 2800 31 Balance: 700 Equipment (144) 9,500.00 Insurance Expense (513) 37 Balance: 9500 Balance 40 Accumulated Depreciation Equipment (145) Supplies Expense (514) B Balance - Accounts Payable (212) 500.00 $ Depreciation Expert 700.00 8,000.00 Onam FQERO Balance: 8200 Balance Income Tax Payable *Payable (213) income Tax Expense (516) Balance - Common Stock (311) 40,000.00 Retained Eamings 312 Balance: 40000 Balance - Dividends (313 450 00 73 Balance 450 3 Prepare a trial balance for July in the space below. Quick Tax Corporation Trial Balance July 31 43,400 3,600 700 9,500 11 Cash 12 Prepaid Insurance 13 Supplies 14 Equipment 15 Accounts Payable 16 Common Stock 17 Dividends 18 Tax Preparation Revenue 19 Rent Expense 20 Salaries Expense 8,200 40,000 450 14,750 2,500 2,800 62,950 62,950 Prepare an adjusted trial balance in the space below. Quick Tax Corporation Adjusted Trial Balance July 31