Debit Credit Entry # 1 Account Names Started Corporation with $10,000.00 in exchange 10,000 shares common stock cash $10.000.00 common stock $10,000.00 2 Purchased a Computer for Cash $1,000.00 computer cash $ 1.000.00 $ 1,000.00 3 Paid the Rent for three months in Advance $1500.00 $ 1,500.00 prepaid rent cash $ 1,500.00 4 Did Work for $500.00 Cash $ 500.00 cash revenue $ 500.00 5 Bought Supplies for $250.00 Account $ 250.00 supplies accounts payable $ 250.00 6 Paid Wages of $1,500.00 $ 1.500.00 wage expense cash $ 1,500.00 7 Received $15,000.00 for work to be done next month cash $ 15,000.00 unearned revenue $ 15,000.00 Paid Advertising Fees to Google $1,500.00 advertising expense cash $ 1,500.00 $ 1,500.00 9 Purchased $1,500.00 of Supplies for Cash supplies cash $ 1,500.00 $ 1,500.00 10 Completed Work on Account and sent an INvoice for $1,000.00 accounts recievable revenue $ 1,000.00 $ 1.000.00 $ 1,100.00 11 Issued 5% Bond with a Face/Par Value of $1,000.00 for $1,100.00 Pays % Annually Cash Bonds Payable Bond Premium $ 1,000.00 $ 100.00 12 Issued 100 shares $100.00 Par Value Preferred Stock Pays 10% Annually Cash Preferred Stock $10.000.00 $10,000.00 2019 $ 50.00 Paid the interest on the bond one year later and amortized the Premium interest expense cash amortization of bond premium interest expense $ 50.00 20 20 2019 Paid the Dividends on the Preferred Stock cash dividens cash 1000 1000 Computer 1000 Common Stock 10000 Marketing Advertising Exp 1500 Cash 10000 500 15000 1000 1500 1500 1500 1500 1000 10000 1500 25600 Accum.Depreciation Preferred Stock Supplies Expense Unearned Revenue Retained Earnings Accounts Receivable Revenue Rent Expense Accounts Payable 250 Bond Payable Prepaid Rent 1500 Depreciation Expense Wage Expense Supplies Premium on Bond Interest Expense INCOME SUMMARY BALANCE Debit Credit Debit Credit Date Account-Cash Account- Prepaid Insurance Account - Supplies Account- Merchandise Inventory Buy Lumber$ 2.00 Buy Lumber $3.00 Buy Lumber $4.00 Made a sale Account - Computer Account - Accumulated Depreciation Adjusting Entry Account- Accounts Payable Buy Lumber $2.00 Supplies Bought Buy Lumber $3.00 Buy Lumber $4.00 Account - Dividends Payable Account- FICA Payable Account- Medicare Payable Account - FIT Payable Account - Blue Cross Blue Shield Account - World Vision Payable $5.00 $5.00 $5.00 $0.00 Account - Wages Payable Account - FUTA Payable $1.00 $1.00 $1.00 $0.00 Account - SUTA Payable $5.00 $5.00 $5.00 Account - Bond Payable $1,000.00 $1,000.00 Account - Amortization of Bond Premium $100.00 $100.00 $20.00 $80.00 Account - Preferred Stock $10,000.00 $10,000.00 Account- Common Stock $5,000.00 $5,000.00 Account - APIC C/S $5,000.00 $5,000.00 Account - Treasury Stock $2,000.00 $2,000.00 Account - Retained Earnings Paid dividend $1.000.000 $1,000.00 Paid dividend $1,000.00 $2,000.00 Account - Dividends Account Income Summary ----Close Revenue ----Close Expense ---Close Income Summary Account - Revenue Record Sale $1,500.00 $1,500.00 Account -Cost of Goods Sold $550.00 $550.000 Account - Depreciation Expense $20.00 $20.00 Account - Supplies Expense $300.00 $300.000 Account - Bank Charges $36.25 $36.25 Account -Insurance Expense $250.00 $250.000 $50.00 Account - Interest Expense Amortize Bond Premium $50.00 $30.00 $20.00 Account - Payroll Tax Expense $13.75 $13.75 Account - Wage Expense $100.00 $100.00 6,350.00 22,691.00 Unadjusted Trial Balance $28,550.00 $ 1,000.00 $ 1,500.00 $ 1,750.00 $ 1,000.00 Cash Accounts Receivable Prepaid Insurance Prepaid Rent Supplies Computer Accumulated Depreciation Accounts Payable Unearned Revenue Bond Payable Premium on Bond Preferred Stock Common Stock Retained Earnings Dividends Revenue Wage Expense Depreciation Expense Interest Expense Marketing Expense Rent Expense Supplies Expense Totals $ 250.00 $15,000.00 $ 1,000.00 $ 80.00 $10,000.00 $10,000.00 $ 1,000.00 $ 1,500.00 $ 1,500.00 $ 30.00 $ 1,500.00 $ 37,830.00$ 37,830.00 Bank Reconciliation The Balance per the Bank is $12,300.00 There is a bank charge of $36.25 Balance Per the Bank $ 12,300.00 Additions Deductions Adjusted Balance Balance Per the General Ledger $ 12,336.25 Additions Deductions Adjusted Balance 1 Credit ADJUSTING ENTRIES Compute 1 Month Depreciation for a computer you paid $1,000.00 Debit Salvage is $100.00 Life 60 Months or 5 Years Depreciation expense $ Accumulated depreciation 15.00 $ 15.00 2 We only counted Supplies left of $500.00 Supplies expense Supplies $ 1,250.00 $ 1,250.00 3 Need to bill $2000.00 of accured revenue Accounts receivable revenue $ 2,000.00 $ 2,000.00 4 Make the adjusting entry for the prepaid rent Rent expense Prepaid rent $ 500.00 $ 500.00 5 You earned all the revenue received in advance Unearned revenue Sales revenue $ 15,000.00 S 15,000.00 This Could Be Your Company, LLC Income Statement For the Month Ended July 31th, 2020 Revenue : Less: Cost of Goods Sold Gross Profit Expenses: Depreciation INterest Expense Marketing Exp Supplies Expense Rent Expense Wage Expense Total Expenses $ Net Income $ This Could Be Your Company, LLC Statement of Retained Earnings For the Month Ended July 31th, 2020 Retained Earnings, July 1st, 2020 S Plus Net Income $ Less Dividends Retained Earnings, July 31th, 2020 S This Could Be Your Company, LLC Balance Sheet July 31st 2020 Assets Liabilities Cash Accounts Receivable Prepaid Rent Supplies Total Current Assets Computer Less: Accumulated Depreciation Net Property Plant and Equipment $ Accounts Payable Bond Payable Premium on Bond Total Liabilities $ Preferred Stock Common Stock APIC - Common Stock Treasury Stock Retained Earnings $ Total Stockholder's Equity $ Total Liabilities & Stockholder's $ $ Total Assets $ Operating Net Income Depreciation Change in Accounts Receivable Change in Prepaid Rent Change in Prepaid Expenses Change in Accounts Payable Change in Supplies Total Cash Flow from Operating Activities $ Investing Purchase of Computer Total Cash Flow from Investing Activities Financing Dividends Paid $ Sale of Stock Purchase of Stock $ Issue Bond $ Total Cash Flow from Financing Activities Change in Cash for the Period Beginning Cash April 1st, 2018 Ending Cash November 30th, 2018 $ $ Adjusted Trial Balance Debit Credit Cash $28,550.00 $3,000.00 Accounts Receivable Prepaid Insurance Prepaid Rent Supplies Computer Accumulated Depreciation Accounts Payable Unearned Revenue $1,000.00 $500.00 $1,000.00 $15.00 $250.00 Bond Payable Premium on Bond $1,000.00 $80.00 $10,000.00 $10,000.00 Preferred Stock Common Stock Retained Earnings $1,000.00 Dividends Revenue $18,500.00 $1,500.00 $15.00 $30.00 Wage Expense Depreciation Expense Interest Expense Marketing Expense Rent Expense Supplies Expense Totals $1,500.00 $500.00 $1,250.00 $39,845.00 $39,845.00 Journal Closing Entries Debit Credit 1)Close Revenue to Income Summary Revenue $18,500.00 Income Summary 2)Close Expenses to Income Summary Income Summary Sales Discount Cost of Goods Sold Bank Expense Depreciation Expense Interest Expense Wage Expense Payroll Taxes Expense Rent Expense Supplies Expense Marketing Expense 3) Close Income Summary to Retained Earnings Retained Earnings Income Summary 4) Close Dividends to Retained Earnings Retained Earnings Dividends Post-Closing Trial Balance 31-Jul-20 Debit Credit Cash Accounts Receivable Prepaid Rent Supplies Computer Accumulated Depreciation Accounts Payable Bond Payable Premium on Bond Unearned Revenue Preferred Stock Common Stock Retained Earnings Dividends Revenue Wage Expense Depreciation Expense Totals $ $ Debit Credit Entry # 1 Account Names Started Corporation with $10,000.00 in exchange 10,000 shares common stock cash $10.000.00 common stock $10,000.00 2 Purchased a Computer for Cash $1,000.00 computer cash $ 1.000.00 $ 1,000.00 3 Paid the Rent for three months in Advance $1500.00 $ 1,500.00 prepaid rent cash $ 1,500.00 4 Did Work for $500.00 Cash $ 500.00 cash revenue $ 500.00 5 Bought Supplies for $250.00 Account $ 250.00 supplies accounts payable $ 250.00 6 Paid Wages of $1,500.00 $ 1.500.00 wage expense cash $ 1,500.00 7 Received $15,000.00 for work to be done next month cash $ 15,000.00 unearned revenue $ 15,000.00 Paid Advertising Fees to Google $1,500.00 advertising expense cash $ 1,500.00 $ 1,500.00 9 Purchased $1,500.00 of Supplies for Cash supplies cash $ 1,500.00 $ 1,500.00 10 Completed Work on Account and sent an INvoice for $1,000.00 accounts recievable revenue $ 1,000.00 $ 1.000.00 $ 1,100.00 11 Issued 5% Bond with a Face/Par Value of $1,000.00 for $1,100.00 Pays % Annually Cash Bonds Payable Bond Premium $ 1,000.00 $ 100.00 12 Issued 100 shares $100.00 Par Value Preferred Stock Pays 10% Annually Cash Preferred Stock $10.000.00 $10,000.00 2019 $ 50.00 Paid the interest on the bond one year later and amortized the Premium interest expense cash amortization of bond premium interest expense $ 50.00 20 20 2019 Paid the Dividends on the Preferred Stock cash dividens cash 1000 1000 Computer 1000 Common Stock 10000 Marketing Advertising Exp 1500 Cash 10000 500 15000 1000 1500 1500 1500 1500 1000 10000 1500 25600 Accum.Depreciation Preferred Stock Supplies Expense Unearned Revenue Retained Earnings Accounts Receivable Revenue Rent Expense Accounts Payable 250 Bond Payable Prepaid Rent 1500 Depreciation Expense Wage Expense Supplies Premium on Bond Interest Expense INCOME SUMMARY BALANCE Debit Credit Debit Credit Date Account-Cash Account- Prepaid Insurance Account - Supplies Account- Merchandise Inventory Buy Lumber$ 2.00 Buy Lumber $3.00 Buy Lumber $4.00 Made a sale Account - Computer Account - Accumulated Depreciation Adjusting Entry Account- Accounts Payable Buy Lumber $2.00 Supplies Bought Buy Lumber $3.00 Buy Lumber $4.00 Account - Dividends Payable Account- FICA Payable Account- Medicare Payable Account - FIT Payable Account - Blue Cross Blue Shield Account - World Vision Payable $5.00 $5.00 $5.00 $0.00 Account - Wages Payable Account - FUTA Payable $1.00 $1.00 $1.00 $0.00 Account - SUTA Payable $5.00 $5.00 $5.00 Account - Bond Payable $1,000.00 $1,000.00 Account - Amortization of Bond Premium $100.00 $100.00 $20.00 $80.00 Account - Preferred Stock $10,000.00 $10,000.00 Account- Common Stock $5,000.00 $5,000.00 Account - APIC C/S $5,000.00 $5,000.00 Account - Treasury Stock $2,000.00 $2,000.00 Account - Retained Earnings Paid dividend $1.000.000 $1,000.00 Paid dividend $1,000.00 $2,000.00 Account - Dividends Account Income Summary ----Close Revenue ----Close Expense ---Close Income Summary Account - Revenue Record Sale $1,500.00 $1,500.00 Account -Cost of Goods Sold $550.00 $550.000 Account - Depreciation Expense $20.00 $20.00 Account - Supplies Expense $300.00 $300.000 Account - Bank Charges $36.25 $36.25 Account -Insurance Expense $250.00 $250.000 $50.00 Account - Interest Expense Amortize Bond Premium $50.00 $30.00 $20.00 Account - Payroll Tax Expense $13.75 $13.75 Account - Wage Expense $100.00 $100.00 6,350.00 22,691.00 Unadjusted Trial Balance $28,550.00 $ 1,000.00 $ 1,500.00 $ 1,750.00 $ 1,000.00 Cash Accounts Receivable Prepaid Insurance Prepaid Rent Supplies Computer Accumulated Depreciation Accounts Payable Unearned Revenue Bond Payable Premium on Bond Preferred Stock Common Stock Retained Earnings Dividends Revenue Wage Expense Depreciation Expense Interest Expense Marketing Expense Rent Expense Supplies Expense Totals $ 250.00 $15,000.00 $ 1,000.00 $ 80.00 $10,000.00 $10,000.00 $ 1,000.00 $ 1,500.00 $ 1,500.00 $ 30.00 $ 1,500.00 $ 37,830.00$ 37,830.00 Bank Reconciliation The Balance per the Bank is $12,300.00 There is a bank charge of $36.25 Balance Per the Bank $ 12,300.00 Additions Deductions Adjusted Balance Balance Per the General Ledger $ 12,336.25 Additions Deductions Adjusted Balance 1 Credit ADJUSTING ENTRIES Compute 1 Month Depreciation for a computer you paid $1,000.00 Debit Salvage is $100.00 Life 60 Months or 5 Years Depreciation expense $ Accumulated depreciation 15.00 $ 15.00 2 We only counted Supplies left of $500.00 Supplies expense Supplies $ 1,250.00 $ 1,250.00 3 Need to bill $2000.00 of accured revenue Accounts receivable revenue $ 2,000.00 $ 2,000.00 4 Make the adjusting entry for the prepaid rent Rent expense Prepaid rent $ 500.00 $ 500.00 5 You earned all the revenue received in advance Unearned revenue Sales revenue $ 15,000.00 S 15,000.00 This Could Be Your Company, LLC Income Statement For the Month Ended July 31th, 2020 Revenue : Less: Cost of Goods Sold Gross Profit Expenses: Depreciation INterest Expense Marketing Exp Supplies Expense Rent Expense Wage Expense Total Expenses $ Net Income $ This Could Be Your Company, LLC Statement of Retained Earnings For the Month Ended July 31th, 2020 Retained Earnings, July 1st, 2020 S Plus Net Income $ Less Dividends Retained Earnings, July 31th, 2020 S This Could Be Your Company, LLC Balance Sheet July 31st 2020 Assets Liabilities Cash Accounts Receivable Prepaid Rent Supplies Total Current Assets Computer Less: Accumulated Depreciation Net Property Plant and Equipment $ Accounts Payable Bond Payable Premium on Bond Total Liabilities $ Preferred Stock Common Stock APIC - Common Stock Treasury Stock Retained Earnings $ Total Stockholder's Equity $ Total Liabilities & Stockholder's $ $ Total Assets $ Operating Net Income Depreciation Change in Accounts Receivable Change in Prepaid Rent Change in Prepaid Expenses Change in Accounts Payable Change in Supplies Total Cash Flow from Operating Activities $ Investing Purchase of Computer Total Cash Flow from Investing Activities Financing Dividends Paid $ Sale of Stock Purchase of Stock $ Issue Bond $ Total Cash Flow from Financing Activities Change in Cash for the Period Beginning Cash April 1st, 2018 Ending Cash November 30th, 2018 $ $ Adjusted Trial Balance Debit Credit Cash $28,550.00 $3,000.00 Accounts Receivable Prepaid Insurance Prepaid Rent Supplies Computer Accumulated Depreciation Accounts Payable Unearned Revenue $1,000.00 $500.00 $1,000.00 $15.00 $250.00 Bond Payable Premium on Bond $1,000.00 $80.00 $10,000.00 $10,000.00 Preferred Stock Common Stock Retained Earnings $1,000.00 Dividends Revenue $18,500.00 $1,500.00 $15.00 $30.00 Wage Expense Depreciation Expense Interest Expense Marketing Expense Rent Expense Supplies Expense Totals $1,500.00 $500.00 $1,250.00 $39,845.00 $39,845.00 Journal Closing Entries Debit Credit 1)Close Revenue to Income Summary Revenue $18,500.00 Income Summary 2)Close Expenses to Income Summary Income Summary Sales Discount Cost of Goods Sold Bank Expense Depreciation Expense Interest Expense Wage Expense Payroll Taxes Expense Rent Expense Supplies Expense Marketing Expense 3) Close Income Summary to Retained Earnings Retained Earnings Income Summary 4) Close Dividends to Retained Earnings Retained Earnings Dividends Post-Closing Trial Balance 31-Jul-20 Debit Credit Cash Accounts Receivable Prepaid Rent Supplies Computer Accumulated Depreciation Accounts Payable Bond Payable Premium on Bond Unearned Revenue Preferred Stock Common Stock Retained Earnings Dividends Revenue Wage Expense Depreciation Expense Totals $ $