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.
Here are the current account balances for Sharon's Stones: Income Statement account Sales Revenue Service Revenue Cost of Goods Sold Expense Utilities Expense Amount (dr/cr) 900 cr 150 cr 400 dr 220 dr Balance Sheet account Cash Accounts Receivable Inventory Equipment Accounts Payable Bank Loan Sharon, Capital Sharon, Withdrawals Amount (dr/cr) 4,330 dr 450 dr 800 dr 3,000 dr 1,200 cr 2,250 cr 5,000 cr 300 dr 1) Make the necessary journal entries for the following transactions: 3 a) b) c) d) e) f) -= 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 11 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 9 contract and one-quarter (25%) of the work on the Sep 25 contract. h) i) j) k) 11) 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. Dr/Cr Account name Account balance 1/S or B/S
