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t The following account balances are provided for JR Enterprises, Inc. at August 31, 2019: Title Balance Accounts payable $ 84,000 Accounts receivable 70,000 Note
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The following account balances are provided for JR Enterprises, Inc. at August 31, 2019: Title Balance Accounts payable $ 84,000 Accounts receivable 70,000 Note payable 202,000 Cash 50,000 Commissions payable 46,000 Common stock (no par) 250,000 Property and Equipment (net) 474,850 Interest payable 300 Interest receivable 150 Short-term investments 38,000 Prepaid rent 24,000 Retained earnings 84,700 Supplies 40,000 Unearned revenue 30,000 All September 2019 transactions follow: 1. Provided services on account for a total of $225,000. Owed related commissions of $40,000. 2. Received a customer advance of $5,600 for October services. 3. Unearned revenue of $16,000 was earned. 4. Used $8,000 in supplies. 5. Sold a used color copier with a book value of $15,000 for $12,000 cash. 6. Paid accounts payable of $77,000 for a new television commercial. 7. Collected $156,000 on customer accounts. 8. Issued common stock for $125,000. 9. Exchanged a note payable for a $75,000 printer on September 30, 2021 10. Paid $153,000 in commissions including $46,000 for August. 11. Received a $3,500 bill for September utilities. 12. Paid $4,300 for September and October radio advertisements. 13. Repaid $20,000 of the note, plus $600 of interest for the months of August and September. 14. Rent has been paid through October 31, 2019 15. Paid $12,000 of income tax expense. Required: a. Prepare T-accounts for each of the accounts provided. Enter beginning balances. Record each of the September transactions in the T-accounts and calculate ending balance for each account. Create new accounts as necessary. b. Prepare a classified income statement for September in good form. In parallel columns, show what would have been reported on a cash basis and what would have been reported on an accrual basisStep by Step Solution
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