PREPARE THE AUGUST ADJUSTING JOURNAL ENTRIES
On August 1, 2021, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, were reported by Concord Ltd. During August, the following summary transactions were completed. Aug. 1 Paid \$410 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September. (Hint: Use the Prepaid Advertising account.) 3 Paid August rent \$410. (Hint: Use the Prepaid Rent account.) 6 Received $3,320 cash from customers in payment of accounts. 10 Paid $2,830 for salaries due employees, of which $1,500 is for August and $1,330 is for July salaries payable. 13 Received $3,720 cash for services performed in August. 15 Purchased additional equipment on account $1,900. 17 Paid creditors $1,900 of accounts payable due. 22 Purchased supplies on account $810. 24 Paid salaries $2,620. 27 Performed services worth $5,070 on account and billed customers. 29 Received $820 from customers for services to be provided in the future. 31 Declared and paid a $550 dividend. g. 10V Salaries Payable 1,330 Salaries Expense 1,500 Cash Cash 3,720 Service Revenue Equipment Accounts Payable Accounts Payable Cash Supplies Accounts Payable Salaries Expense 2,620 Cash 2,830 Accounts Receivable Prepaid Advertising Supplies Prepaid Rent Note Receivable Interest Receivable Equipment Accumulated Depreciation - Equipment Accounts Payable Salaries Payable Deferred Revenue Retained Earnings Dividends Declared Service Revenue Salaries Expense Aug. 10 1500 Aug. 24 \begin{tabular}{|l|} \hline 2620 \\ \hline 4120 \\ \hline \end{tabular} Your answer is correct. Prepare a trial balance at August 31 . CONCORD LTD. Trial Balance August 31, 2021 Cash $ 5610$ Accounts Receivable 5650 Prepaid Advertising 410 Supplies 1790 Prepaid Rent 410 Notes Receivable 4000 Interest Receivable 20 Equipment Credit Accumulated Depreciation - Equipment Accounts Payable 3110 Deferred Revenue Common Shares Retained Earnings Dividends Declared 550 Service Revenue Salaries Expense \begin{tabular}{|l|} \hline 4120 \\ \hline$3960 \\ \hline \end{tabular} 2150 12300 5630 Concord records adjustments monthly. Adjustment data for the month of August are as follows: 1. One month's worth of advertising services have been received. 2. The August rent has expired. 3. Accrued salaries payable are $1,610. 4. Depreciation for the month is $198. 5. Supplies on hand at August 31 are $1,020. 6. Services were performed to satisfy $750 of Deferred revenue. 7. One month of interest income related to the $4,000 note receivable has accrued. The note was issued on June 30 and is due October 31 and has a 6% annual interest rate. Interest is due at maturity. 8. Income tax of $330 is estimated to be owed for the month of August. Prepare the August adjusting journal entries. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.)
