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Plus journal entries for A-F Please and thank you! Pam Fisher opened a web consulting business called Finance First and recorded the following transactions in
Plus journal entries for A-F Please and thank you!
Pam Fisher opened a web consulting business called Finance First and recorded the following transactions in its first month of operations. Apr. 1 Fisher invests $92,000 cash along with office equipment valued at $40,500 in the company. Apr. 2 The company prepaid $11,400 cash for twelve months' rent for office space. The company's policy is record prepaid expenses in balance sheet accounts. Apr. 3 The company made credit purchases for $8,200 in office equipment and $4,100 in office supplies. Payment is due within 10 days. Apr. 6 The company completed services for a client and immediately received $5,500 cash. Apr. 9 The company completed a $20,500 project for a client, who must pay within 30 days. Apr. 13 The company paid $12,300 cash to settle the account payable created on April 3. Apr. 19 The company paid $3,360 cash for the premium on a 12-month insurance policy. The company's policy is record prepaid expenses in balance sheet accounts. Apr. 22 The company received $4,800 cash as partial payment for the work completed on April 9. Apr. 25 The company completed work for another client for $6,800 on credit. Apr. 28 Fisher withdrew $6,000 cash from the company for personal use. Apr. 29 The company purchased $3,500 of additional office supplies on credit. Apr. 30 The company paid $2,900 cash for this month's utility bill. Descriptions of items that require adjusting entries on April 30, 2019, follow. a) On April 2, the company prepaid $11,400 cash for twelve months' rent for office space. b) The balance in Prepaid insurance represents the premium paid for a 12-month insurance policy the policy's coverage began on April 1. c) Office supplies on hand as of April 30 total $1,700. d) Straight-line depreciation of office equipment, based on a 5-year life and a $8,200 salvage value, is $675 per month. e) The company has completed work for a client, but has not yet billed the $2,000 fee. f) Wages due to employees, but not yet paid, as of April 30 total $3,100. Adjusted FINANCE FIRST Balance Sheet April 30, 2019 ASSETS Current assets Adjusted FINANCE FIRST Income Statement For Month Ended April 30, 2019 Revenues: Plant assets: Expenses: LIABILITIES AND EQUITY Liabilities: $ Equity: Net income Adjusted Account affecting the Impact on net Income Statement Balance Sheet Adjusting entry related to: a) Rent b) Insurance c) Office supplies d) Depreciation e) Unbilledfees 0 Unpaid wagesStep by Step Solution
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