Question
(only need the adjusting enties) The Bell wholesale company stared business on July 1, 2018, the following transactions too place in the month of July.
(only need the adjusting enties) The Bell wholesale company stared business on July 1, 2018, the following transactions too place in the month of July.
The owners invested $200,000 cash in the company in exchange for 5,000 shares of common stock.
Equipment is purchased for $30,000 on account.
On July 1, $12,000 rent on building is paid for the months of July, August, and September.
Merchandize inventory $40,000 is purchased on account. The company uses perpetual inventory system.
$20,000 is borrowed from a local bank, and a note payable is signed.
Credit sales for the month are $62,000, The cost of merchandize sold is $38,000.
$2,000 is paid on account for office supplies.
$55,000 is collected from customers on account.
$10,000 is paid to employees for wages in July.
A bill of $3,000 is received from utility company for the month of July.
A customer paid $9,000 for merchandize to be delivered in August and September.
The company paid $1,000 as dividend to its shareholders.
Solve for Bells adjustment entries based on the following information, then compete the excel spreadsheet through the adjustment entries columns.
The company anticipate $1,000 from the accounts receivable will not be collected.
Accrue interest expense for the notes payable in July based on transaction e, the interest rate is 6%.
Using the straight line depreciate method, recognize the depreciate expense for the equipment in July. Assume the useful life is 5 years and the residual value is $3,000.
Adjust the rent expense for the month of July based on transaction c.
Adjust the supplies expense for July assuming the ending supplies is $1,500.
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