From the following information for Jones Company,

prepare the 3 journal entries,

the 8 adjusting entries,

the balance sheet,

and the closing entries.

Jones uses an Income Summary account which closes the Revenue and Expense accounts to it before the Income Summary account is closed out to RE.

the 8 adjusting entries, the balance sheet, and the closing entries. Jones uses an Income Summary account which closes the Revenue and Expense accounts to it before the Income Summary account is closed out to RE.

a. Jones Company issued $100,000 of 6% Bonds Payable at 101 on 9/1/14.

b. Jones Company purchased $50,000 of IBM Co. 10% Bonds as an Investment on 10/1/14.

c. Jones Company purchased $5,000 of Treasury Stock on 12/25/14. J

ONES Company Preadjusted Trial Balance 31-Dec-15

Debit Balances Credit Balances

Cash 36,580.00

Accounts Receivable 5,250.00

Supplies 1,850.00

Prepaid Rent 3,200.00

Prepaid Insurance 1,500.00

Office Equipment 14,500.00

Accumulated Depreciation 330.00

Accounts Payable 900.00

Salaries Payable 0.00

Unearned Fees Payable 4,050.00

Common Stock 40,000.00

Paid In Capital-Common Stock 2,300.00

Retained Earnings 7,500.00

Fees Earned 24,655.00

Salary Expense 1,380.00

Rent Expense Supplies Expense Depreciation Expense Insurance Expense

Miscellaneous Expense 475.00

72,235.00 72,235.00

The data needed to determine year-end adjustments are as follows:

a. Accrued fees revenue at Dec. 30 are $1,500.

b. Insurance expired during the year is $1,200.

c. Supplies on hand at Dec. 31 are $450.

d. The Unearned Fees Payable balance on 12/31/2014 should be $1,000 so it has to be reduced by $3,050 for the fees or revenue earned during the year.

e. Rent Expense of $1,000 for Dec. is earned.

f. Depreciation on Equipment for Dec. is $500.

g. Record the adjusting entry for interest expense and the amortization of the Bonds Payable in a. (previous page before the TB) for 4 months.

h. Record the adjusting entry for interest receivable on the Bond Investment in b. (previous page before the TB) for 2 months.

I. Record the closing entry for the revenues and expenses closed directly to Retained Earnings.