Date During January, the first month of operations, the following transactions occurred: Event 2-Jan Paid for...
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Date During January, the first month of operations, the following transactions occurred: Event 2-Jan Paid for 12 months rent on office space 5-Jan Purchased office fumiture. 5-Jan Borrowed cash from the bank for operating expenses. The note charges simple interest and is to be paid back in 5 years 11-Jan Performed services for various customers for cash and on account (total 24,000 19-Jan Paid salaries to employees for 1 week. 20-Jan Received cash in advance from Stanley Inc. for work to be performed over the next 12 months. 22-Jan Purchased additional office supplies on account. 28-Jan Collected payments for amounts previously billed. 29-Jan Paid for utilities. 29-Jan Paid the bill for supplies purchased previously. 31-Jan Dividends were declared and paid. At the end of January, the following additional information is available to help determine what adjustments are needed: 31-Jan One month of interest has accrued on the note payable for the bank loan. 31-Jan Additional work for customers has been performed during the last week of January but not billed yet 31-Jan Supplies were counted at month end 31-Jan One month of the prepaid rent has been used up 31-Jan Depreciation expense needs to be recognized for the computer equipment and for the office furniture 31-Jan One month of the services for Stanley Inc. has been performed (see above). 31-Jan Salaries are paid every Friday (for a 5 day work week). January 31 was a Tuesday Amount 9,000 8,950 30,000 loan amt 12,500 cash 6,560 11,760 5,650 8,950 1,986 10,590 500 Amount 6985 4680 295 comp equip 6,560 weekly Amount 0.02 interest rate 11500 on account Amount 85 off fum Prepare journal entries for the above transactions Date During January, the first month of operations, the following transactions occurred: Event 2-Jan Paid for 12 months rent on office space 5-Jan Purchased office fumiture. 5-Jan Borrowed cash from the bank for operating expenses. The note charges simple interest and is to be paid back in 5 years 11-Jan Performed services for various customers for cash and on account (total 24,000 19-Jan Paid salaries to employees for 1 week. 20-Jan Received cash in advance from Stanley Inc. for work to be performed over the next 12 months. 22-Jan Purchased additional office supplies on account. 28-Jan Collected payments for amounts previously billed. 29-Jan Paid for utilities. 29-Jan Paid the bill for supplies purchased previously. 31-Jan Dividends were declared and paid. At the end of January, the following additional information is available to help determine what adjustments are needed: 31-Jan One month of interest has accrued on the note payable for the bank loan. 31-Jan Additional work for customers has been performed during the last week of January but not billed yet 31-Jan Supplies were counted at month end 31-Jan One month of the prepaid rent has been used up 31-Jan Depreciation expense needs to be recognized for the computer equipment and for the office furniture 31-Jan One month of the services for Stanley Inc. has been performed (see above). 31-Jan Salaries are paid every Friday (for a 5 day work week). January 31 was a Tuesday Amount 9,000 8,950 30,000 loan amt 12,500 cash 6,560 11,760 5,650 8,950 1,986 10,590 500 Amount 6985 4680 295 comp equip 6,560 weekly Amount 0.02 interest rate 11500 on account Amount 85 off fum Prepare journal entries for the above transactions
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Here are the journal entries for the above transactions 1 Jan 2 Rent Expense 9000 Prepaid Rent 9000 To record the payment for 12 months rent on office ... View the full answer
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
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