5 Standard Entries (beginning of month) 6 A.) Jaxon, Inc. borrows $100,000 from Second National Bank. 7 B.)Jaxon, Inc. issues $150,000 in stock, receiving cash from the investors. 8 C.) Jaxon, Inc. buys $2,500 in supplies, on account. 9 D.) Jaxon, Inc. buys a new piece of equipment for $25,000 in cash. E.) Jaxon, Inc. purchases $12,000 in insurance in cash, for a 12 month policy, since their prior insurance 10 policy had been used up. 11 F.) Jaxon, Inc. receives $5,000 cash in advance from a customer for services to be rendered next period. 12 G.) Jaxon, Inc. paid rent of $10,000 for the month. 13 H.) Jaxon, Inc. buys $1,250 in supplies paying cash. 14 1.) Jaxon, Inc. pays a cash dividend of $2,000 to its investors. 15 16 Adjusting Entries (end of month) 17 J.) Jaxon, Inc. needs to accrue $2,000 in salaries that will not be paid until next month. 18 K.) Jaxon, Inc. has earned $2,000 of the services that were paid for in advance by the customer in entry F. L.) At the end of the period, Jaxon, Inc. has provided services in the amount of $500 to another customer, but has not yet billed them 19 since they only issue bills at the beginning of each month. 20 M.) Jaxon, Inc. needs to record the annual $1,025 of depreciation on the equipment. 21 N.) One month of the new insurance policy has been used up, and a journal entry is needed to reflect this. 22 0.) At the end of the period, $925 out of the $2,500 supplies purchased above are remaining. 23 24 Closing Entries (end of month) 25 P.) Prepare the closing entry to close revenues out to Retained Earnings 26 Q) Prepare the closing entry to close expenses out to Retained Earnings 27 R.) Prepare the closing entry to close dividends out to Retained Earnings 28 29 Standard Entries 30 31 A) cash Debit $100,000 Credit 32 notes payable $100,000 33 34 B.) Cash $150,000 35 Common Stock $150,000 36 37 C.) Supplies $2,500 38 Accounts Payable $2,500 39 40 D.) Equipment $25,000 41 Cash $25,000 42 43 E) 44 Prepaid Insurance Cash $12,000 $12000 05