M3-13
new subscriptions covering the next 24 months, with service beginning to show how the prepared for the current month. Refer to 03.7. Prepare journal entries for the receipt of cash and the delivery of the magazines atement effects template to recoed the receipt of the $9,768; and (b) use the template accounts should be adjusted at the end of January before financial statements are 3.8. Q3-9. Trombley Travel Agency pays an employee $950 in wages each Friday for the five-day work weck last Friday of January falls on January 27. How should Trombley Travel Agency adjust wages expense on January 31, its fiscal year-end? Q3-10. The Basu Company earns interest amounting to $720 per month on its investments. The company interest revenue every six months, on December 31 and June 30. Moethly financial receives the interest statements are prepared. Which accounts should Basu adjust on January 31? What types of accounts are closed at the end of the accounting year? What are the three major Q3-11. steps in the closing process? Assignments with the logo in the margin are available in See the Preface of the book for details Mini Exercises M3-12. Assessing Financial Statement Effects of Transactions LO2 Daniels started Daniels Services, a firm providing art services for advertisers, on June 1. The following accounts are needed to record the transactions for June: Cash, Accounts Receivable, Supplies, Office Equipment, Accounts Payable, Common Stock, Dividends, Service Fees Earned, Rent Expense, Utities Expense, and Wages Expense. Record the following transactions for June using the financial statement effects template. K. MBC June 1 K. Danicls invested $12,000 cash to begin the business in exchange for common stock. 2 Paid $950 cash for June rent. 3 Purchased $6,400 of office equipment on credit Purchased $3,800 of art materials and other supplies; the company paid $1,800 cash with the remainder due within 30 days. Billed clients $4,700 for services rendered. 6 11 17 Collected $3,250 cash from clients on their accounts billed on June 11. 19 Paid $5,000 cash toward the account for office equipment (see June 3). 25 Paid $900 cash for dividends. 30 Paid $350 cash for June utilities. 30 Paid $2.500 cash for June wages Preparing Journal Entries and Posting Refer to the information in M3-12. Prepare a journal entry for each transaction. Create a T-account for each account, and then post the journal entries to the T-accounts (use dates to reference each entry). M3-13. MBC M3-14. Assessing Financial Statement Effects of Transactions Company, a cleaning services firm, on April 1. The company created the B. Fischer started Fischer following accounts to record the transactions for April: Cash: Accounts Receivable: Supplies; Prepaid Van Lease: Equipment: Notes Payable: Accounts Payable: Common Stock; Dividends; Cleaning Fees Earned; Wages Expense: Advertising Expense; and Van Fuel Expense. Record the following transactions for April using the financial statement effects template
