Need help doing the adjustment entry.
(Below is the aforementioned January journal entry as the reference.)
F G H K M N Required: Record the adjusting journal entries for the month. ONLY RECORD ITEMS IN BLUE BOXES 2 3 Account Titles Debit Credit 4 5 6 7 8 9 9 10 B C D E Question 4: Adjusting Journal Entries Perfect Smiles summarized the unadjusted trial balances for the month of January as follows. (Hint: You can use these to ensure your transactions were recorded correctly in Question 2) Debit Credit Cash 246,611 1. Rent was prepaid for the period of January to December. One month has now been used. Accounts receivable 206,728 Inventory 270,730 2. The delivery truck is anticipated to last 10 years and have a residual value of $4,000. Prepaid rent (Adjustment #1) 17,000 Delivery truck (Adjustment =2) 42,000 3. Wages owing to administrative staff is $2,200. Accumulated depreciation Accounts payable 92,029 4. Income taxes of $34.000 is owing for the month. Wages Payable (Adjustment #3) 6,000 Income tax payable (Adjustment #4) 5. One month of the dental repair services paid for in advance on January 3'd Unearned revenue (Adjustment =5) 10,000 has now been provided. Common shares 496,000 Retained earnings Sales revenue 383.435 Service revenue 15,000 Cost of goods sold 189,416 Wages expense 24.000 Date 31-Jan Adjustment #1 31-Jan Adjustment =2 31-Jan Adjustment #3 31-Jan Adjustment=4 31-Jan Adjustment #5 11 12 13 14 15 16 17 18 19 20 Classify the adjustments into the type of adjusting entry and either the adjustment as a deferral or accrual Adjustment #1 Adjustment #2 Adjustment #3 Adjustment #4 Adjustment #5 Rent expense 21 22 23 24 25 26 Depreciation expense Income tax expense Dividends declared Totals 6.000 1,002,484 1,002,484 What would be the impact on net income if the adjusting entry was not recorded? Adjustment #1 Adjustment #2 Adjustment #3 Adjustment #4 Adjustment #5 27 28 29 30 What account should never be impacted by adjusting entries? 31 32 33 23 . B D E F H 5 6 January Description Amount Required: Record the journal entries for the month ONLY RECORD ITEMS IN BLUE BOXE Date Account Titles Debit Credit 1-Jan Cash 496,000 496,000 7 1 Issued 100,000 common shares for cash. Common Shares 496.000 8 10.000 2-Jan Cash 10,000 9 2 Received a deposit from a dentist for dental equipment repairs for January to December Unearned Revenue 10,000 10 17,000 2-Jan Prepaid Rent 17,000 11 2 Prepaid cash for a rental facility for January to December. Cash 17,000 12 460,146 3-Jan 460,146 13 3 Purchased of inventory on account. Inventory Accounts Payable 460,146 14 15,000 9-Jan Accounts Receivable 15,000 15 9 Provided repair services for dental equipment and invoiced the dentist. Service Revenue 15,000 16 368,117 12-Jan Accounts Payable 368,117 17 12 Made a partial payment to suppliers for the inventory previously purchased on account. Cash 368,117 18 42,000 13-Jan Delivery Truck 42,000 19 13 Bought a delivery truck for cash Cash 42,000 20 24,000 21-Jan 21 Wages Expense 18.000 21 Incurred wages expenses, of which $18,000 was paid the remainder will be paid in February Cash 18,000 22 23 Wages Payable 6,000 383.455 31-Jan Accounts Receivable 383,455 24 The months summary of inventory sold to customers on account. Sales Revenue 383,455 25 31 189,416 Cost of Goods Sold 189,416 26 The original cost of the inventory that was sold. Inventory 189,416 27 191,728 31-Jan Cash 191,728 28 31 Collected a partial payment from customers who had previously purchased on account. Accounts Receivable 191,728 29 31-Jan Dividends Declared 6,000 30 31 Declared and paid dividends. 6,000 Cash 6,000 31
