Question
Homework 1 The assets, liabilities, and owners equity accounts for Carries Accounting Firm are below: Cash Office Supplies Office Equipment Accounts Receivable Accounts Payable Carrie,
Homework 1
The assets, liabilities, and owners equity accounts for Carries Accounting Firm are below:
Cash
Office Supplies
Office Equipment
Accounts Receivable
Accounts Payable
Carrie, Capital
Carrie, Drawing
Professional Fees
Utility Expense
Rent Expense
Salary Expense
Transactions:
- Carrie invested $75,000 cash
- Purchased office equipment on account from Torres company on account $12,000
- Purchased office supplies $1000 on account
- Received $700 for from a client
- Purchased office supplies for $300
- Paid salaries to employees $2500
- Billed customer Diamond for services provided $3000
- Paid utility bill $600
- Paid rent $3000
- Paid $6000 to Torres company (2)
- Received $2000 from Diamond (7)
- Carrie withdrew $3000 for personal use
13. Prepaid Insurance $24000 for one year
14. Prepaid rent for 6 months ($2000 per month)
Adjusting entries:
15. Inventory indicated $300 in supplies have been used
16. $800 in salaries earned by Jan 31 but will not be paid until February
17. Office Equip depreciates at $200 per month
18. Received $65,000 for contract to be completed in February
New Accounts:
Prepaid insurance
Insurance Expense
Prepaid Rent
Supplies Expense
Salaries Payable
Accumulated Depreciation
Depreciation Expense
Unearned Revenue
Closing Entries:
1) Additional JE - Post to ledger - New Trial Balance
2) Adjusting entries - Post to Ledger - Adjusted Trial Balance
3) Income Statement, Statement of Owner's Equity, Balance Sheet
4) Closing Entries - Post to Ledger - Post-Closing Trial Balance
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