On July 1, 20X1, Tim Stein established his own Financial Services. Selected transactions for the first few days of July follow. DATE TRANSACTIONS 201 July 1 Signed a lease for an office and issued Check 191 for $14,550 to pay the rent in advance for six nonths. 1 Borroned money fron Second liational Bank by issuing a four-month, 12 percent note for $35,200; received $33,792 because the bank deducted the interest in advance. 1 Signed an agreenent with Carter Corp. to provide financial services for one year at $6,900 per month; received the entire fee of $82,800 in advance. The $82,800 was credited to Unearned Financial Service Fees. 1 Purchased office equipent for $19,200 from office Outfitters; issued a two-month, 6 percent note in paynent, The equipeent is estinated to have a useful life of six years and a 33,360 salvage value. The equipment will be depreciated using the straight-line method. 1 Purchased a one-year insurance policy and issued Check 102 for $1,728 to pay the entire preaiun. 3 Purchased office furniture for $19,000 from Furniture Warehouse; issued Check 103 for $12,400 and agreed to pay the balance in 60 days. The equipent has an estinated useful life of four years and a $1, 000 salvage value. The office furniture will be depreciated using the straight-1ine nethod. 5 Purchased office supplies for $1,990 with Check 104. Assune $890 of supplies are on hand July 31,201. Required: 1. Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and uneamed Income as a liability for the year 201. 2. Record the adjusting journal entries that must be made on July 31, 20X1. Analyze: What balance should be reflected in Unearned Financial Service Fees at July 31, 20x1? Answer is not complete. Record the transactions in the general journal. Assume that the firm/initially records prepaid expenses as assets and uneame income as a liability for the vear 2nx1 Record the adjusting journal entries that must be made on July 31,201. On July 1, 20X1, Tim Stein established his own Financial Services. Selected transactions for the first few days of July follow. DATE TRANSACTIONS 20xt July 1 Signed a lease for an office and issued Check 101 for $14,550 to pay the rent in advance for six months. 1 Borroued money from Second Natlonal Bank by issuing a four-month, 12 percent note for $35,200; recelved 331,792 because the bank deducted the Interest in advance. 1 Signed an agreement with Carter Corp. to provide financial services for one year at 56,900 per nonth; recelved the entire fee of $82,860 in advance. The $82,800 was credited to Unearned Financial Service fees. 1 Purchased office equipment for $19,20e from office outfitters; issued a two-month, 6 percent note in paynent. The equipoent is estimoted to have a useful life of six years and a 33,360 salvage value. The equipment will be depreciated using the straight-1line method. 1 Purchased a one-year insurance policy and issued Check 102 for $1,726 to pay the entire prealum. 3 Purchased office furniture for $19, eee from Furniture Warehouse; issued Check 103 for $12,400 and ogreed to pay the balance in 60 days. The equipment has an estimated useful 11 fe of four years and a $1, 000 salvage value. The office furniture will be depreclated using the straight-1ine method. 5 Purchased office supplies for $1,990 with Check 104. Assume s39e of supplies are on hand July 31,20x. Required: 1. Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and uneamed income as a liability for the year 201. 2. Record the adjusting journal entries that must be made on July 31, 20X1. Analyze: (x) Answer is not complete. Complete this question by entering your answers in the tabs below. What balance should be reflected in Unearned Financial Service Fees at July 31, 20x1
