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Perform journal entries & t-account for both months while considering depreciation and unearned revenue. After several months of planning, Mary Tratini started a called Italian
Perform journal entries & t-account for both months while considering depreciation and unearned revenue.
After several months of planning, Mary Tratini started a called Italian Product". The following business activities occurred during it's first month (June 1-30, 2020): Please note, there are NO sales tax on the transactions 1) The owner deposited $50,000 cash in the business bank account 2) Purchase machinery, 9,200$ cash. Should be used for 4 years and could be sold 3,000$ at the end of those years. Declining balance method 3) Supplies purchases $2,300 on credit 4) Services rendered to customers $4,150. Received cash payment 5) Purchased $18,000 of equipment on credit. We believe it's going to be used for 13 years and will go to scrap (garbage) at the end of those years. Straight-line method 6) Create Petty cash 800$ 7) Services rendered to customers $8,100. Received cash payment 8) Rent payment $500 cash 9) Payment to suppliers $350 (for previous purchased) 10) 50$ was used for taxi, 15$ parking ticket 11) Provided Services to customers $1,400 on credit. 12) Received 13,000$ for a contract to be completed in the next few months. 13) Record any missing journal entries Here are the July 2020 (July.01-31) transactions : 1) 75$ was used for employee's gifts, 25$ was used for withe paper (printer) 2) 15% of the contract has been completed 3) Payment to suppliers $1,800 (for previous purchased) 4) Rent payment $500 cash 5) Owner withdrawal 225$ 6) Received $1,175 cash from customers (previous sales) 7) Refill petty cash 8) An additional 19% of the contract has been completed 9) Salaries payment $600 cash 10) Record any missing journal entriesStep by Step Solution
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