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Mr. Michal works as a financial accountant in a consulting service company. At the end of December 14th he realizes that there is a mismatch

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Mr. Michal works as a financial accountant in a consulting service company. At the end of December 14th he realizes that there is a mismatch between the cash balance in the general ledger and the cash that he has in the drawer. The cash in his drawer are showing a balance of $2560 and the cash balance in the books is S3650. He does not remember where the money went to so he just prepares an adjusting journal entry. The next day on 15th of December he remembers that he actually paid one of the suppliers for the services offered last month, for the exact amount and forgot to record it. Please prepare the journal entry for December 14th and December 15 Debit Credit Account Date Debit Credit Account Date Exercise 1 out of 4: Adjusting Entries, Merchandise Inventory and COGS (60 points) Prepare the journal entries for the following business transactions. Goodbo. Is a company which offers services and merchandise and uses perpetual inventory system, prepares the adjusting entries on monthly bases and prepares the financial statements at the end of the year. a. January 1- 2020 Goodbo. Pays with cash $26.000 for the insurance expense which will be valid from February 2020- end of January 2021 (1 year) Account Debit Credit Date b. February 1" 2020 Goodbo. Purchases 50.000 computers for the purpose of selling them with a cost of $1.000 per unit. The purchase was on account with the term 2/10 1/30. Please keep in mind theGoodbo. Uses perpetual inventory system and net method. Debit Credit Account Date c. February 5* 2020 Goodbo sells 2.000 computers (purchased above) with the price o $5.000 each. The sale is made on account with the term 2/10. n 30. Debit Credit Account Date d. February 13- 2020 Goodbo made the payment for the purchase on of February. EU-FRM-010-002-EN Pub. Date:23/03/2010 Upd: 00 e. February 14 2020 Client paid the purchase made on 5 of February Date Account Debit Credit f. March 3, 2020. Client paid in advance for the services that Goodbo will offer during the month of May, June and July. The total payment was 12.000 (equal payments per each month Date Account Debit Credit g. Prepare the adjusting entry for the insurance expense on 31" of March Date Account Debit Credit h. Prepare the adjusting entry for the revenue recognition on 31" of May ( have a look at point c) Date Account Debit Credit

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