Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Prepare the adjusting journal entries as well as post them to T-accounts according the the ADJUSTING DATA below : Transactions: Dec. 1 Family members contributed

Prepare the adjusting journal entries as well as post them to T-accounts according the the ADJUSTING DATA below:

Transactions: Dec. 1 Family members contributed $50,000 cash to the business in exchange for capital.

Dec. 2 Purchased $10,800 of equipment for the store paying cash.

Dec. 3 Paid $4,500 for a 9-month insurance policy starting on December 1.

Dec. 4 Paid $18,000 cash to purchase land to be used in operations.

Dec. 5 Purchased office supplies on account, $3,000.

Dec. 6 Borrowed $28,000 from the bank for business use. You signed a bank payable note for an interest rate of 5% APR.

Dec. 7Paid $800 for advertising expenses.

Dec. 8 Purchased inventory (dog food) for the store at a cost of $1,500

Dec. 9 Paid for office supplies $3,000 Dec 10 Received a bill for utilities to be paid in January, $200.

Dec 31 Service Revenues earned during the month included $18,500 cash and $2,000 on account.

Dec. 31 Sold one hundred percent of the dog food purchased on Dec. 8th for $2,100 in cash.

Dec. 31 Paid employees' salaries $2,000 and building rent $800.Dec. 31 Dividends of $200 were paid.

Adjustment Data

  1. Office Supplies used during the month, $600.
  2. Depreciation on the Equipment for the month should be calculated based on straight-line depreciation and a useful life of 4 years (zero residual).
  3. One month insurance has expired.
  4. Calculate accrued interest expense and make adjusting entry.
  5. Service charge from bank totaled $25.
  6. Sales Method for reserving for doubtful accounts was executed (Remember, only A/R balances are considered).

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Frequently Asked Questions In International Standards On Auditing

Authors: Steven Collings

1st Edition

1118765419, 978-1118765418

More Books

Students also viewed these Accounting questions