Question
X company started it business during January 2021 and following transaction is occurred in first month 1- Journalize Following Transactions # Transaction Journalizing (Journal Entries)
X company started it business during January 2021 and following transaction is occurred in first month
1- Journalize Following Transactions
| # | Transaction | Journalizing (Journal Entries) | ||
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| Account Title | Debit (Dr) | Credit (Cr) |
| 1 | Started its business by investing $15000 cash in exchange ordinary shares |
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| 2 | Purchasing Equipment by $6000 cash |
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| 3 | Purchase Supplies $1000 on account |
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| 4 | Paid $2000 in advance for 2 years insurance policy (use prepaid Insurance) |
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| 5 | Service performed by $6000, Received $5000 cash and remaining 1000 on account |
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| 6 | Paid rent expense $1000, salaries expense $800, other expenses $2200 |
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| 7 | Hired New Secretary with a salary of $800 monthly, started her work next month |
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| 8 | Received $1000 in advance from clients for services will deliver next month (Use Unearned Revenue) |
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| 9 | Paid $600 from its account payable that was in transaction #3 |
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| 10 | Received $300 from account receivable in transaction #5 |
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2- Posting To Ledger (T Accounts) Cash
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3- Prepare Adjusting Entries at end of January
a- If prepaid insurance is expired $200 monthly, Prepare Adjusting Entry for one month
| Adjusting Entry | ||
| Account Title | Debit (Dr) | Credit (Cr) |
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b- It Performed one-half (1/2) of services in transaction #8, Prepare Adjusting Entry
| Adjusting Entry | ||
| Account Title | Debit (Dr) | Credit (Cr) |
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c- Supplies on hand at end of January was $400 , Prepare Adjusting Entry
| Adjusting Entry | ||
| Account Title | Debit (Dr) | Credit (Cr) |
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d- Equipment is depreciated $300 monthly, Prepare Adjusting Entry
| Adjusting Entry | ||
| Account Title | Debit (Dr) | Credit (Cr) |
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Principles of Information Systems
Authors: Ralph M. Stair, George W. Reynolds
9th edition
978-1337097536, 1337097535, 978-1337515634, 1337515639, 978-0324665284
