Problem 1 Requirements:

1 Prepare journal entries to record the May 2015 transactions listed on page posted in previous question. Check figure: Total Debits: 94,300

Optional: Post the journal entries to the T accounts and calculate the account balances. Prepare an unadjusted trial balance.

Check figures: Cash balance= 8760; Trial balance Total Debits= $61,000

2. Prepare adjusting journal entries in the general journal based on the following information (all AJEs arae dated May 31)

a. Record insurance expired for one month

b. Employees earn salaries and wages of $225 per day. Accure wages and salaries for May 30-31.

c. There were $175 of supplies on hand at the end of the month.

d. the van has a useful life of 10 years. Record one month of depriciation.

e. The trailer has a useful life of 5 years. Record one month of depreciation.

f. Annual interest on the note payable is 6%. Record accrued interest for May.

g. On May 31, the company president returned from taking a group of runners on a trip. The clients will be billed $500 in June for the trip.

h. By the end of May, 4 employees from the company which prepaid the running trips on May 8, had completed the running trips.

i. Income taxes to accrue for May are estimated to be $1,080.

Check Figure: Total Debits= $5,125

Optioal: Post the adjusting entries to the T accounts and calculate the account balances. Prepare an adjusted trial balance. Check figure: Total Debits:= $63,540.

PREVIOUS QUESTION

You are the accountant for a hypothetical company that takes folks on running trips. Classify the following transactions under the appropriate accounts as debits or credits for the month of May...

Acct# Account Title

111 Cash

112 Accounts Receivable

113 Prepaid Insurance

114 Supplies

141 Van

142 Accumulated Depreciation - Van

143 Trailer

144 Accumulated Depreciation - Trailer

211 Notes Payable

212 Accounts Payable

213 Unearned Service Revenue

214 Interest Payable

215 Salaries & Wages Payable

216 Income Tax Payable

311 Common Stock

312 Retained Earnings

313 Dividends

314 Income Summary

411 Service Revenue

511 Salaries & Wages Expense

512 Advertising Expense

513 Insurance Expense

514 Utilities expense

515 Rent Expense

516 Supplies Expense

517 Consulting Expense

520 Depreciation Expense

530 Interest Expense

540 Income Tax Expense

Transactions

May 1- Conpany begins business by selling 25,000 shares of $1 per value common stock for $25,000.

May 1- Purchased a Van for $25,200 to transport clients. Paid $5,200 down and signed a promissory note for the remained.

May 2- Paid $250 to rent office space for May.

May 3- Purchased a trailer to carry gear behind the Van for $12,000

May 4- Purchased a one-year liability insurance policy for $2,400

May 5- Purchased supplies (water bottles, energy bars, ect.) on account from Peace Surplus $560.

May 6- Provided services to a group of runners on a trip and received $4,000. cash.

May 8- Received $2,500 cash from a separate company to reserve 5 spots on future running trips for their employees.

May 12- Paid $400 to advertise in the local newspaper. The newspaper ran all of the ads in May.

May 15- Paid employee salaries for the first half of May $3,375.

May 18- Guided a running trip for a team of runners. This service was provided on account, $6,000.

May 20- Received an invoice for $1,500 from a web designer company for the creation of a new website for the company. Invoice will be paid in June.

May 22- Paid for the supplies previously purchased from Surplus store on May 5.

May 23- received $2,000 cash from customers for guiding a trip.

May 26- received $4,000 cash for guiding trip on May 18 for payment on their account.

May 28- Paid utility bills for the month of May $180.

May 29- Paid employee salaries, $3,150 for the payroll period ending on May 29.

May 31- Declared and paid cash dividends of $1,225 to stockholders.