Income Statement account

Amount (dr/cr)

Balance Sheet account

Amount (dr/cr)

Sales Revenue

900 cr

Cash

4,330 dr

Service Revenue

150 cr

Accounts Receivable

450 dr

Cost of Goods Sold Expense

400 dr

Inventory

800 dr

Utilities Expense

220 dr

Equipment

3,000 dr

Accounts Payable

1,200 cr

Bank Loan

2,250 cr

Sharon, Capital

5,000 cr

Sharon, Withdrawals

300 dr

l) Make the necessary journal entries for the following transactions:

a)

Aug 31, 2024- Sharon recognizes that her equipment will last 3 years and have a salvage value of $100 at that point. She wishes to depreciate all capital assets on a monthly basis using the straight-line method.

b)

Sep 1, 2024- Sharon purchases a $6,000 vehicle financed through a car dealership loan (4% annual interest rate with interest payable every three months). The vehicle is expected to last 5 years with a salvage value of $1,000.

c)

Sep 3, 2024- Hugh pays off his remaining debt to Sharon.

d)

Sep 5, 2024- Sharon pays her supplier for the Aug 11th purchase.

e)

Sep 9, 2024- Sharon secures a $3,000 contract to produce ten jewellery pieces. The customer will provide the materials and pay at the end.

f)

Sep 13, 2024- Sharon makes a $950 cash sale. The goods had cost her $450.

g)

Sep 18, 2024- Sharon buys inventory for $800 on account.

h)

Sep 21, 2024- Sharon completes a $100 necklace repair on account.

i)

Sep 25, 2024- Sharon secures a $2,000 contract to produce seven jewellery pieces. The customer pays her up front.

j)

Sep 28, 2024- Sharon repays $750 of her bank loan.

k)

Sep 30, 2024- Sharon estimates she has completed two-thirds (66.7%) of the work on the Sep 9th contract and one-quarter (25%) of the work on the Sep 25th contract.