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You have the following transactions for Johan business for August. Date Transaction Aug. 1 Johan start his business of $70,000 for cash. Aug. 3 Johan

You have the following transactions for Johan business for August.

Date

Transaction

Aug. 1

Johan start his business of $70,000 for cash.

Aug. 3

Johan purchases equipment for $45,000; $37,500 was paid immediately with cash, and the remaining $7,500 was billed to Johan with payment due in 30 days.

Aug. 6

purchases supplies for $300 cash.

Aug. 10

provides $4,000 in services to a customer who asks to be billed for the services.

Aug. 13

pays a $75 utility bill with cash.

Aug. 14

receives $3,200 cash in advance from a customer for services not yet rendered.

Aug. 17

receives $5,200 cash from a customer for services rendered.

Aug. 19

paid $2,000 toward the outstanding liability from the August 3 transaction.

Aug. 22

paid $4,600 cash in salaries expense to employees.

Aug. 28

The customer from the August 10 transaction pays $1,500 cash toward Johans account.

On August 31, Johan has the transactions shown below that requiring adjustment.

August 31 Transactions

Date

Transaction

Aug. 31

Johan took an inventory of supplies and discovered that $250 of supplies remain unused at the end of the month.

Aug. 31

The equipment purchased on August 3 depreciated $2,500 during the month of August.

Aug. 31

Johan performed $1,100 of services during August for the customer from the August 14 transaction.

Instructions:

  1. Prepare journal entries.
  2. Posting to the ledger.
  3. Prepare unadjusted trial balance.
  4. Prepare adjusting entries.
  5. Prepare income statement and balance sheet.

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