Crafty Art, Inc opened for business on April 1 st Listed below are the transactions for Ajayi Art, Inc for the month of April April 1 Issued common stock in exchange for $250,000 cash April 1 Purchased office equipment for $17,500 cash April 1 Borrowed $20,000 from Novus Bank and signed a 10 note Interest and principal to be paid in 12 months April 5 Paid $4,000 rent in advance for the art gallery for the next two months April 10 Purchased art supplies from Wacky Art Co on account for $12,200 April 12 Received $5,300 from a customer who commissioned a piece of custom art to be completed by the end of the year April 15 Paid miscellaneous office expenses totaling $285 in cash April 17 Billed customers $3,400 for art classes provided in March April 19 Paid $5,300 to Wacky Art Co April 25 Received $2,200 from customers on account April 30 Recorded $3,800 in salaries for the month of April Paychecks will be disbursed to employees on May 2 nd Using an Excel spreadsheet, prepare the following Using the ACT350 CTTemplate Mod2 xlsx file (in the module folder), enter the transactions shown above in appropriate general ledger accounts (use T accounts) Use the following ledger accounts Cash, Accounts Receivable, Supplies on Hand, Prepaid Rent, Office Equipment, Accumulated Depreciation, Accounts Payable, Common Stock, Service Revenue, Rent Expense, Miscellaneous Office Expense, Office Salaries Expense, Supplies Expense, Depreciation Expense, Retained Earnings, Unearned Revenue, Office Salaries Payable, Notes Payable, Interest Payable, and Interest Expense Prepare an unadjusted trial balance Record depreciation using a five year life on the office equipment, the straight line method, and no salvage value Round to whole numbers Also, record an adjustment for art supplies used in the amount of $2,510 and record interest expense for the note Prepare an adjusted trial balance

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Posted on Sep 18, 2024

Crafty Art, Inc. opened for business on April 1^st. Listed below are the transactions for Ajayi Art, Inc. for the month of April:

April 1 Issued common stock in exchange for $250,000 cash.
April 1 Purchased office equipment for $17,500 cash.
April 1 Borrowed $20,000 from Novus Bank and signed a 10% note. Interest and principal to be paid in 12 months.
April 5 Paid $4,000 rent in advance for the art gallery for the next two months.
April 10 Purchased art supplies from Wacky Art Co. on account for $12,200.
April 12 Received $5,300 from a customer who commissioned a piece of custom art to be completed by the end of the year.
April 15 Paid miscellaneous office expenses totaling $285 in cash.
April 17 Billed customers $3,400 for art classes provided in March.
April 19 Paid $5,300 to Wacky Art Co.
April 25 Received $2,200 from customers on account.
April 30 Recorded $3,800 in salaries for the month of April. Paychecks will be disbursed to employees on May 2^nd.

Using an Excel spreadsheet, prepare the following:

Using the ACT350_CTTemplate_Mod2.xlsx file (in the module folder), enter the transactions shown above in appropriate general ledger accounts (use T-accounts). Use the following ledger accounts: Cash, Accounts Receivable, Supplies on Hand, Prepaid Rent, Office Equipment, Accumulated Depreciation, Accounts Payable, Common Stock, Service Revenue, Rent Expense, Miscellaneous Office Expense, Office Salaries Expense, Supplies Expense, Depreciation Expense, Retained Earnings, Unearned Revenue, Office Salaries Payable, Notes Payable, Interest Payable, and Interest Expense.
Prepare an unadjusted trial balance
Record depreciation using a five-year life on the office equipment, the straight-line method, and no salvage value. Round to whole numbers. Also, record an adjustment for art supplies used in the amount of $2,510 and record interest expense for the note.
Prepare an adjusted trial balance.