Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

HELP On May 1, 2011 a new business started up. Complete Adjusting Journal Entries: 1. At end of period, Accounting Department counted supplies on hand

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

HELP

On May 1, 2011 a new business started up. Complete Adjusting Journal Entries: 1. At end of period, Accounting Department counted supplies on hand and discovered they amounted to $2,000. 2. Prepaid Insurance is a 12 month policy. May was its first month in effect. 3. A transaction was discovered amounting to $400 that had not been previously booked, billed or collected. 4. The Notes Payable is a one year note at 6%simple interest. The loan was effective the first day of this past month. Interest is payable at end of loan term. (remember interest formula: Interest - Principal x time x rate). Loan amt=$10,000. 5. For the "Advance" or "Uneared Service Revenue" received on May 1, 50% of the contract is complete. 6. Company employees work Monday through Friday and are paid weekly. The last day of the month is on a Thursday. Weekly payroll amounts to $3,000. Ref Date Description Debit Credit A/R Cash 40,200 (1st net) Supplies 5.000 (1st net) PP Insurance 1.200 (1st net) 200 (1st net) A/P Salaries Payable Interest Payable Notes Payable 10.000 4.000 (Unearned Revenue) Advances (1st net) 2,400 Common Stock (1st net) 20.000 Revenue (1st net) Salaries Expense 9.000 (1st net) Rent Expense 800 Supplies Exp 20.000 PP Ins. Expense Interest Expense Adjusted Tr Vance Spreadsheet Account Title Adjustments DR CR Adi Trial Balance DR CR Income Statement DR CR Balance Sheet DR CR Trial Balance DR CR 40,200 200 5,000 1,200 Cash Accounts Receivable Supplies Prepaid Insurance Notes Pyable Accounts Payable Salaries Payable Interest Payable 10,000 4,000 0 0 2,400 20,000 Unearned Service Revenue Common Stock Convice Revenue 20,000 9,000 800 lelame Salaries expense Rent Expense Prepaid Insurance Expense Supplies Expense Interest Expense Totals: 56,400 56,400 Gain or Loss 20,000 Shareholders Equity Common Stock Beginning Retained Earnings Add Profit Deduct Loss Sub-total Less Dividends Ending Retained Earnings Total stockholders' equity 0 6.250 0 6,250 6,250 6,250 26.250 FINANCIAL STATEMENTS INCOME STATEMENT REVENUE EXPENSES Total Expenses: Profit or Loss: BALANCE SHEET ASSETS Total Assets: LIABILITIES Total liabilities: 20,000 0 STOCKHOLDERS EQUITY Common Stock Beginning Retained Earnings Add Profit Deduct Loss Sub-total Less Dividends Ending Retained Earnings Total stockholders' equity Total liabilities and stockholders.equity 6,250 0 6,250 0 6,250 6,250 26,250 43,900 Assets - Liabilities + Stockholder's Equity

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computerized Accounting Using QuickBooks Pro 2020

Authors: Alvin A. Arens, D. Dewey Ward, Carol J. Borsum

6th Edition

0912503793, 9780912503790

More Books

Students also viewed these Accounting questions