During January, the first month of operations, the following transactions occurred: Amount Date Event Amount 1-Jan Paid for 12 months rent on office space 3-Jan Purchased additional office supplies on account 4-Jan Purchased office furniture 8-Jan Borrowed cash from the bank for operating expenses. The note charges simple interest and is to be paid back in 5 years 11,400 9,562 8,590 0.02 interest rate 30,000 loan amt 10-Jan Paid for utilities. 1,650 14-Jan Received cash in advance from Stanley Inc. for work to be performed over the next 12 months. 13,200 15-Jan Performed services for various customers for cash and on account. 11,560 cash 22560 on account 26-Jan Paid the bill for supplies purchased previously 28-Jan Paid salaries to employees for 1 week. 29-Jan Dividends were declared and paid. 31-Jan Collected payments for amounts previously billed. 9,860 4,650 1,000 19,650 At the end of January, the following additional information is available to help determine what adjustments are needed: Amount Amount 31-Jan Supplies 31-Jan One month of the services for Stanley Inc. has been performed (see above) 31-Jan One month of interest has accrued on the note payable for the bank loan. 31-Jan Additional work for customers has been performed during the last week of January but not billed yet 31-Jan One month of the prepaid rent has been used up 31-Jan Depreciation expense needs to be recognized for the computer equipment and for the office furniture 31-Jan Salaries are paid every Friday (for a 5 day work week). January 31, 2019 was a Thursday were counted at month end 5670 6580 165 comp equip 190 off furn 4,650 JOURNAL ENTRIES BeeMoor Consulting Inc CREDIT DATE ACCOUNT DEBIT Prepaid Rent 1-Jan 11,400 1-Jan 11,400 Cash |Supplies 3-Jan 9,562 9,562 Accounts Payable 3-Jan Office Furnature 4-Jan 8,590 8.590 Cash 4-Jan Cash 8-Jan 30,000 Notes Payable 8-Jan 30,000 10-Jan Utilities Expense 1,650 1,650 Cash 13,200 14-Jan Cash 13,200 Unearned Revenue 15-Jan Cash Account Receivable 11560 22560 34120 Service Revenue 26-Jan Accounts Payable 9860 Cash 9860 28-Jan Salaries Expenses 4650 Cash 4650 29-Jan Dividend 1000 Cash 1000 31-Jan Cash 19650 Accounts Receivable 19650 ADJUSTING JOURNAL ENTRIES - BeeMoor Consulting Inc DATE ACCOUNT DEBIT CREDIT 31-Jan Supplies Expense 13752 13752 Supplies 31-Jan Unearned Revenue 1100 1100 Service Revenue 31-Jan Interest Expense 50 Interest Payable 50 31-Jan Accounts Receivable 6580 6580 Service Revenue 31-Jan Rent Expense 950 950 Prepaid Rent 31-Jan Depreciation Expense 355 Accumulated Depreciation Equipment 165 Accumulated Depreciation Furniture 190 31-Jan Salaries/Wages Expense 3720 Salaries/Wages Payable 3720 UNADJUSTED TRIAL JANUARY BEGINNING NUMBERS ENTRIES ADJUSTMENTS ADJUSTED TRIAL BALANCE BALANCE DEBIT DEBIT DEBIT ACCOUNT DEBIT CREDIT CREDIT CREDIT CREDIT DEBIT CREDIT Cash 74410 37150 125,760 88,500 125,760 Accounts Receivable 22560 19650 2910 6580 9490 Supplies 9,860 9,562 19,422 13,752 5670 Prepaid Rent 11400 11400 950 10450 Land 35000 35,000 35,000 35000 Computer Equipment Accumulated Depreciation, Comp Equip 36500 36,500 36,500 36500 165 165 Office Furniture 8590 8590 8590 Accumulated Depreciation, Off Furn 190 190 Accounts Payable 19,422 9,860 9562 19422 Salaries Payable 930 930 nterest Payable 50 50 12100 Unearned Revenue 13200 13200 1100 30000 Long-term Notes Payable 30,000 30000 Common Stock 160,000 160,000 160,000 Retained Earnings 1000 Dividends 1000 1000 Service Revenue 34120 34120 7680 41800 Salaries Expense 4650 4650 930 5580 Rent Expense 950 950 Supplies Expense Jtilities Expense 13,752 13,752 1650 1650 1650 nterest Expense 50 50 Depreciation Expense, Comp Equip 165 165 Depreciation Expense, Office Furniture 190 190 169,860 169,860 205322 256742 23717 264657 23717 143682 246,882 254,797
