On July 1, 20x1, Tim Steln established his own Financial Services. Selected transactions for the first few days of July follow. DATE TIANSACTIONS 2011 July ! Signed a loane for an office and conued Check 101 for $13,950 to pay the rent in advance for a month. 1 Borrowed money from Second National Bank by focuing a four-month, 6 percent note for $31, 2007 received $30,576 because the bank deducted the interest in advance. 1 signed an agreement with Carter Corp. to provide financial services for one year at $6,500 per month received the entire fee of $78,000 in advance. The $78,000 was credited to Unearned Financial Service 1 Purchased office equipment for $17,200 from office Outfitters issued a two-month, 9 percent not payment. The equipment i estimated to have a useful life of four years and a $1.840 Salvage value the equipment 11 be depreciated using the straight-line method. Purchased one-year nurance policy and issued Check 102 for $1,680 to pay the entire premium 3 Purchased office furniture for $22, 120 from Furniture Warehouse) inued Check 103 for $15,520 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of six years and 31.600 alvage value. The office furniture il be deprecated using the straight-Line method 5 Purchased office wuppikou for $X,910 vith Check 104. Anaume $850 of supplies are on hand July 20X1 Required: 1. Record the transactions in the general journal. Assume that the firm Initially records prepaid expenses as assets and unearned Income as a liability for the year 20X1. 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, 20X12 Required 1 Required 2 Analyze Record the transactions in the general journal. Assume that the firm initially records prepaid expens a liability for the year 20X1. View transaction list Journal entry worksheet Record the payment of rent. Note: Enter debits before credits Date General Journal Dobit Credit Jul. 01. 20X1 Record entry Clear entry View general journal Journal entry worksheet Record the borrowing. Note: Enter debits before credits. General Journal Dobit Date Jul. 01, 20X1 Credit Record entry Clear entry View general journal Journal entry worksheet Record the fees received in advance. Note: Enter debits before credits. General Journal Data Jul. 01. 20X1 Debit Credit Record entry Clear entry Vlow general Journal Journal entry worksheet Record an adjusting entry for interest paid in advance. Note: Enter debits before credits General Journal Data Jul 31, 20X1 Dobit Credit Record entry Clear entry View general Journal Journal entry worksheet
