John Jackson opened JJCo on August 1, accounting cycle. 2020. During August, the following transactions were completed.

Jack invested $13,000 cash in the company. Purchased equipment for $10,000, paying $2,000 cash and the balance on account. Purchased office supplies for $1200 on account. Paid $2,000 cash on a 1-year rent effective August 1. Invoiced customers $2,500 for services performed. Paid $1,000 cash on amount owed on equipment and $300 on amount owed on office supplies. Paid $2,000 cash for employee salaries. Collected $2,000 cash from customers billed in the fifth transaction above. Billed customers $5,500 for services performed. Paid $500 for electricity and phone bills during month. Jack withdrew $1500 cash from the company.

Instructions:

1) Journalize above transactions. (11 points)

2) Journalize the following adjustments. (5 points)

Services performed but unbilled and uncollected at end of period were $2,500. Depreciation on equipment for the month was $300. The rent expired for the current month A count shows $250 of office supplies on hand at end of month. Accrued but unpaid employee salaries were $750. Bad debts expense amount to 1 % of credit sales for the month. The company uses the allowance method.

3) Journalize closing entries. (4 points)