Joey Juno began a web-based computer sales and service company on October 1, 2015 called Juno's Toys Inc. The plan is to prepare monthly adjustments so that financial statements can be done each month. The following information is available for October, 2015 (assume a perpetual inventory system). October 1 Joey invested $10,000 cash along with $9,000 of computer equipment into his new business in exchange for 900 shares. The equipment is estimated to have a useful life of 3 years and have no value after that time. 1 Purchased 7 months worth of insurance for $1,300 cash, the insurance is effective immediately. 1 Sold merchandise to John Smith that cost $2,800 for $3,600; terms 1/15, n30. 1 $22,000 of merchandise was purchased from Vision Consulting Inc. on account; terms 1/10, n30. 2 Bought $400 of office supplies, paid cash. 2 Sold merchandise to John Smith that cost $5,200 for $6,200 cash. 4 The customer of October 1, 2015 returned $1,000 of their purchase due to defects, the returned merchandise will not be returned to inventory. 6 Bought used office furniture for $1,800 cash. It is estimated that the business will use the furniture for 5 years and then donate it to a charity 6 Collected the balance owing regarding the October 1, 2015 sale. 8 Purchased $10,000 of merchandise inventory from Stake Technology Inc.; terms 1/10, n30; FOB shipping point. 9 Received the October 8, 2015 purchase and paid cash of $200 for shipping. 13 Paid for the merchandise purchased from Vision Consulting Inc. on October 1, 2015 15 Paid for the merchandise purchased from Stake Technology Inc. on October 8, 2015. Additional information available at month end, October 31: A count of the office supplies showed a balance on October 31 of $100. The merchandise inventory was counted and there was a balance on hand at October 31 of $23,050. The October utility bill arrived from Epcor Utility Company, the $600 balance owing must be paid by November 15, 2015. Please make sure your final answer(s) are accurate to 2 decimal places. Enter an appropriate description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (ie. January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and for decrease. For example, if an account decreases equity, choose '-Equity'. Prepare the journal entries based on the transactions that occurred from October 1 to October 31. Also, record the six adjusting entries for the month ended October 31 based on the additional information and a review of the October transactions. Prepare the journal entries based on the transactions that occurred from October 1 to October 31. Also, record the six adjusting entries for the month ended October 31 based on the additional information and a review of the October transactions. Journal entries: Adjusting entries: General Journal Page Gj1 Effect On General Journal Page Gj1 Effect On Date Account/Explanation F Debit Credit Balance Sheet Date Account/Explanation Credit Balance Sheet Debit + = + + 1 + = + =
