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using these journal entries, complete the following closing/adjusting entries. STEP 2 Transactions for January 2022 Transaction # Date Event Received payments relating to accounts receivable
using these journal entries, complete the following closing/adjusting entries.
STEP 2 Transactions for January 2022 Transaction # Date Event Received payments relating to accounts receivable of $15,000 1/2/22 leaving an outstanding balance of $650. Earned Service Revenues on account of $100,000, with terms of 5/10, net 20. The cost of these revenues is $65,000 and will be paid 1/4/22 later in the month. (These costs are related to selling services.) CO NO 1/5/22 Paid last year's income tax liability Provided services related to the Deferred Revenue balance as of 1/11/22 |Jan 1. Received cash to settle half of the Receivables recorded on January 1/13/22 4. Customers took the allowed discount (5%). 1/14/22 Paid the beginning balance in the Accounts Payable account Rented a piece of equipment to be used for the next two months, paying $6000 cash at the time of the rental. The cost of the rental is 1/15/22 to be expensed over time. 1/15/22 Paid employees in the amount of $8,000. Generated service revenues of $20,000. These revenues were collected in cash at the time of the transaction. The cost of revenue CO 1/16/22 ($4,494) was paid in cash. Paid the accounts payable balance from the transaction on January 10 1/18/22 4 Made a payment on the long-term loan of $1440. A portion of this payment is applied to the interest payable balance on 1/1, a portion ($200) is interest for this period, and the balance reduces the 11 1/21/22 principal of the long-term loan payable. Equipment with an original cost of $7,000 and a book value of $3,600 12 1/21/22 was sold for $4,000 in cash. 13 1/23/22 Issued 1,000 shares of $1 par value stock for $6 cash each. 14 1/23/22 Incurred $10,500 in Sales and Marketing Expenses. Paid in cash. Received $45,000 in payment of the receivable recorded on January 15 1/24/22 4. No discounts were taken. 16 1/25/22 Spent $11,000 researching new products 17 1/26/22 Purchased additional PP&E in the amount of $11,000 paying cash. 18 1/27/22 Received $1,100 in advance for services to be provided in February. It is determined that $400 of accounts receivable will never be 19 1/29/22 collected. See topic 6.4 in MyEducator for a refrseher on this topic. 20 1/31/22 Paid employees in the amount of $12,000, Income tax for the month was $4,500. $3,200 was paid this month 21 1/31/22 and the remainder will be paid in March.Transactions 22 1/31/22 The beginning balance in the Prepaid Rent account on January 1 reflects three months of remaining rent on office space. 23 1/31/22 Depreciation expense for the month totaled $1,900. Uses the Allowance Method for estimating Bad Debt. Ten 24 1/31/22 percent of the ending AR Balance is estimated to be uncollectible. 25 1/31/22 Interest of $180 should be accrued on the long-term loan payable. 26 1/31/22 Rent on the January 15 equipment rental must be recognized STEP 5 CLOSING ENTRIES 22 23 24 25 26Step by Step Solution
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