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Adjustments and closing processbasic entries Selected ledger accounts used by Goldstone Advertising, Inc., are listed along with identifying numbers. Following this list of account numbers
Adjustments and closing processbasic entries
Selected ledger accounts used by Goldstone Advertising, Inc., are listed along with identifying numbers. Following this list of account numbers and titles in a series of transactions, you are required to indicate the proper accounts to be debited and credited for each transaction.
Account(s) | Account(s) | ||
Transactions | Debited | Credited | |
Example: Paid rent on building for the current period. | 53 | 1 | |
a) | Received an advance payment from a client for services to be rendered over next six months. | ||
b) | Paid salaries of employees. | ||
c) | Bought a three-year insurance policy and paid in full. | ||
d) | Performed services for a client; received part of fee in cash, remainder to be collected in 30 days. | ||
e) | Purchased office equipment; paid in cash, balance payable in 60 days. | ||
f) | Purchased a large quantity of office supplies on credit. | ||
g) | Declared a dividend to be paid in 45 days. | ||
h) | Made an adjusting entry for the portion of the insurance premium that had expired. | ||
i) | Made an adjusting entry to record depreciation for the period. | ||
j) | Made an adjusting entry for office supplies used during the period. | ||
k) | Made an adjusting entry to recognize that a portion of the fee received in advance (transaction a) had now been earned. | ||
l) | Paid the dividend declared in transaction g. | ||
m) | Made an adjusting entry to accrue income taxes at the end of an unprofitable period. | ||
n) | Closed the Income Summary account at the end of an unprofitable period. | ||
o) | Closed the Dividends account at the end of the period. |
Please solve all the parts thank you...
1 2. 3 4 5 6 Cash Accounts Receivable Office Supplies Unexpired Insurance Office Equipment Accumulated Depr. Office Equip Dividends Payable 22 23 24 30 31 32 35 Accounts Payable Income Taxes Payable Unearned Fees Capital Stock Retained Earnings Dividends Income Summary 41 51 52 53 54 55 Fees Earned Salaries Expense Office Supplies Expense Rent Expense Insurance Expense Depreciation Expense: Office Equip Income Taxes Expense 21 56Step by Step Solution
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