Adjusted Entries 1) To create an adjusting entries using the following information in the General Journal with calculations on the side a) Depreciation of the house b) Depreciation of the furniture c) Interest on the promissory note d) Recognition of the expired portion of the insurance e) Recognition of a portion of the guest's deposit f) Wages earned during the second half of January amount to $5,120 and will be paid on February 3 g) Cleaning supplies on hand on January 31 amount to $230 h) A gas and electric bill that is received from the city amounts to $740 and is payable by February 5 i) Income taxes are to be accrued at a rate of 30 of income before taxes 2)Post the adjusting entries on Janurary 31 below to the General Ledger T accounts and compute adjusted balances Just add to the balances that are already listed January Transactions Date Transaction Description Jan 2 Began business by each of the three owners contributing $20,000 in cash each in exchange for shares of stock in the business Jan 2 A Victorian inn is purchased for $50,000 in cash An appraisal performed on this date indicates that the land is worth $15,000, and the remaining balance of the purchase price is attributable to the house The owners estimate that the house will have an estimated useful life of 25 years and an estimated salvage value of $5,000 Jan 3 A two year, 12 , $30,000 promissory note was signed at Second State Bank Interest and principal will be repaid on the maturity date of January 3, 2019 Jan 4 New fumiture for the inn is purchased at a cost of $15,000 in cash The furniture has an estimated useful life of ten years and no salvage value Jan 5 A 24 month property insurance policy is purchased for $6,000 in cash Jan 6 An advertisement for the inn is placed in the local newspaper Moonlight Bay pays $450 cash for the ad, which will run in the paper throughout January Jan 7 Cleaning supplies are purchased on account for $950 The bill is payable within 30 days Jan 15 Wages of $4,230 for the first half of the month are paid in cash Jan 16 A guest mails the business $980 in cash as a deposit for a room to be rented for two weeks The guest plans to stay at the inn during the last week of January and the first week of February Jan 31 Cash receipts from rentals of rooms for the month amount to $8,300 Jan 31 Cash receipts from operation of the restaurant for the month amount to $6,600 Jan 31 Each stockholder is paid $200 in cash dividends Chart of Accounts Account Account Type Number Account Title Normal Balance Assets 111 Cash Debit 117 Prepaid Insurance Debit 115 Cleaning Supplies Debit 14 Furniture Debit 145 Accum Dep Fumiture Credit 146 House Debit 147 Accum Dep House Credit 148 Land Debit Liabilities 212 Accounts Payable Credit 213 Notes Payable Credit 214 Wages Payable Credit 215 Utilities Payable Credit 216 Rent Received in Advance Credit 217 Interest Payable Credit 218 Income Tax Payable Credit Stockholders Equity 31 1 Retained Earnings Credit 312 Capital Stock Credit 313 Dividends Debit Revenue 411 Revenue Rental of Rooms Credit 412 Revenue Restaurant Credit Expenses 511 Advertising Expense Debit 512 Wages Expense Debit 513 Insurance Expense Debit 514 Supplies Expense Debit 515 Utilities Expense Debit 516 Depreciation Expense Debit 517 Interest Expense Debit 518 Income Tax Expense Debit Other 999 Income Summary CreditACCOU nt Title Debit Credit 111 Cash 29 600 117 Prepold Insurance 6 000 119 Cleaning Supplies 950 144 Furniture 15,000 146 House 35,000 148 Land 15,000 213 Notes Payable 30 000 214 Wages Payable 4 230 216 Rental Revenue uneamed 980 312 Shared Capital 60 000 313 Dividends 600 411 Rental Revenue 8 300 412 Revenue Restaurant 6 600 511 Adverstsing Expense 450 106 830 105 880

Question

Adjusted Entries 1) To create an adjusting entries using the following information in the General Journal with calculations on the side  a) Depreciation of the house b) Depreciation of the furniture c) Interest on the promissory note d) Recognition of the expired portion of the insurance e) Recognition of a portion of the guest's deposit f) Wages earned during the second half of January amount to $5,120 and will be paid on February 3  g) Cleaning supplies on hand on January 31 amount to $230  h) A gas and electric bill that is received from the city amounts to $740 and is payable by February 5  i) Income taxes are to be accrued at a rate of 30  of income before taxes  2)Post the adjusting entries on Janurary 31 below to the General Ledger T accounts and compute adjusted balances  Just add to the balances that are already listed  January Transactions Date Transaction Description Jan  2 Began business by each of the three owners contributing $20,000 in cash each in exchange for shares of stock in the business  Jan  2 A Victorian inn is purchased for $50,000 in cash  An appraisal performed on this date indicates that the land is worth $15,000, and the remaining balance of the purchase price is attributable to the house  The owners estimate that the house will have an estimated useful life of 25 years and an estimated salvage value of $5,000  Jan  3 A two year, 12 , $30,000 promissory note was signed at Second State Bank  Interest and principal will be repaid on the maturity date of January 3, 2019  Jan  4 New fumiture for the inn is purchased at a cost of $15,000 in cash  The furniture has an estimated useful life of ten years and no salvage value  Jan  5 A 24 month property insurance policy is purchased for $6,000 in cash  Jan  6 An advertisement for the inn is placed in the local newspaper  Moonlight Bay pays $450 cash for the ad, which will run in the paper throughout January  Jan  7 Cleaning supplies are purchased on account for $950  The bill is payable within 30 days  Jan  15 Wages of $4,230 for the first half of the month are paid in cash  Jan  16 A guest mails the business $980 in cash as a deposit for a room to be rented for two weeks  The guest plans to stay at the inn during the last week of January and the first week of February  Jan  31 Cash receipts from rentals of rooms for the month amount to $8,300  Jan  31 Cash receipts from operation of the restaurant for the month amount to $6,600  Jan  31 Each stockholder is paid $200 in cash dividends Chart of Accounts Account Account Type Number Account Title Normal Balance Assets 111 Cash Debit 117 Prepaid Insurance Debit 115 Cleaning Supplies Debit 14 Furniture Debit 145 Accum Dep  Fumiture Credit 146 House Debit 147 Accum Dep   House Credit 148 Land Debit Liabilities 212 Accounts Payable Credit 213 Notes Payable Credit 214 Wages Payable Credit 215 Utilities Payable Credit 216 Rent Received in Advance Credit 217 Interest Payable Credit 218 Income Tax Payable Credit Stockholders Equity 31 1 Retained Earnings Credit 312 Capital Stock Credit 313 Dividends Debit Revenue 411 Revenue   Rental of Rooms Credit 412 Revenue   Restaurant Credit Expenses 511 Advertising Expense Debit 512 Wages Expense Debit 513 Insurance Expense Debit 514 Supplies Expense Debit 515 Utilities Expense Debit 516 Depreciation Expense Debit 517 Interest Expense Debit 518 Income Tax Expense Debit Other 999 Income Summary CreditACCOU nt   Title Debit Credit 111 Cash 29 600 117 Prepold Insurance 6 000 119 Cleaning Supplies 950 144 Furniture 15,000 146 House 35,000 148 Land 15,000 213 Notes Payable 30 000 214 Wages Payable 4 230 216 Rental Revenue   uneamed 980 312 Shared Capital 60 000 313 Dividends 600 411 Rental Revenue 8 300 412 Revenue Restaurant 6 600 511 Adverstsing Expense 450 106 830 105 880

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Adjusted Entries 1) To create an adjusting entries using the following information in the General Journal with

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Adjusted Entries 1) To create an adjusting entries using the following information in the General Journal with

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