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journal entries and t accounts Frodo Baggins set up Hobbit Consulting, a service business at the beginning of May 2018. The business transactions that occurred
journal entries and t accounts Frodo Baggins set up Hobbit Consulting, a service business at the beginning of May 2018. The business transactions that occurred during the month of May were as follows: 1. May 1 Frodo put the following assets into the business a. Cash $20,000 b. Accounts Receivable $14,700 C. Supplies $3,300 d. Office Equipment $12,000 2. May 2- Purchased additional office equipment on account for $8,000 from Samwise Gamgee 3. May 5 Paid 6 month's rent on a lease contract in advance, $6,000 4. May 10 Paid cash for a newspaper advertisement, $350 5. May 18 Provided services to clients on account, $11,700 6. May 20 Paid Merri and Pippin a 2 week salary of $1,650 7. May 25 Paid $6,400 to Samwise Gamgee for part of the debt incurred on May 2 May 27- Received cash from clients of $9,400 as an advance payment of 8. services to be provided in the future May 29 Frodo withdrew $9,000 for personal use 9. At the end of May, the following adjusting entries were required in the accounts 1. 1 month has passed on the lease contract (May 5 Transaction) 2. Supplies on hand at 31 May were $1,225 3. Depreciation of office equipment was $400 4. Frodo provided some services to clients and earned fees that were unearned. Therefore unearned fees at the 31 May are $2,350 previously
journal entries and t accounts
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