Income Statement account Amount (dr/cr)

Sales Revenue 900 cr

Service Revenue 150 cr

Cost of Goods Sold Expense 400 dr

Utilities Expense 220 dr

Balance Sheet account Amount (dr/cr)

Cash 4,330 dr

Accounts Receivable 450 dr

Inventory 800 dr

Equipment 3,000 dr

Accounts Payable 1,200 cr

Bank Loan 2,250 cr

Sharon, Capital 5,000 cr

Sharon, Withdrawals 300 dr

Journal

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.

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.

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

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

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.

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

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

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

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

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

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.

Make the necessary journal entries for the following transactions:

II) Make the necessary adjusting entries for the August month-end. Also, make a list of updated income statement and balance sheet accounts (and their dr/cr balances) after these adjustments are done.

lll) Make the necessary adjusting entries for September month-end for Sharons Stones. Also, make a list of updated income statement and balance sheet accounts (and their dr/cr balances) after these adjustments are done.

IV) Make the necessary closing entries at the end of September (quarter-end) for Sharons Stones.