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Smile Consulting completed the following TEN transactions during August 2021, its first month of operation. Assume that the company makes adjustments at the end of
Smile Consulting completed the following TEN transactions during August 2021, its first month of operation. Assume that the company makes adjustments at the end of every month. Record these transactions in general journal entry form. Style conventions for journalizing must be followed. For example, date is entered first for each transaction and do not abbreviate account titles. Explanations of transactions are not required. Please use correct and complete account titles. Otherwise, points will be deducted. August 1 Prepaid $ 4,800 cash for two-month rent (from 8/1/2021 to 9/30/2021). 1 Purchase office equipment costing $48,000 by issuing a one-year note with a stated interest rate of 8% per year. The interest and principal will be paid on the maturity date (7/31/2022). 7 Provided consulting services of $ 8,700 on account. 13 Purchased $2,900 of office supplies on account. 18 Collected $4,100 cash from accounts receivable 24 Received $5,200 cash in advance for services to be performed in the future. 31 Adjusted for August rent expense (see the first transaction Aug. 1). 31 Accrued unpaid August interest on the note (see the second transaction on Aug. 1). 31 Adjusted for unpaid August salaries of $ 3,900. 31 Counted supplies and determined that $740 of supplies (purchased on Aug. 13) remain on hand at the end of August. Adjusted for supplies expense
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