Question
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:
- Prepare journal entries.
- Posting to the ledger.
- Prepare unadjusted trial balance.
- Prepare adjusting entries.
- Prepare income statement and balance sheet.
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