Prepare journal entries for each of the summary transactions listed below (Journal tab of the Working...

 

  

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Prepare journal entries for each of the summary transactions listed below (Journal tab of the Working Papers in Excel). The first transaction is journalized and posted for you. Explanations are not required. Use dollars but not cents. 1. Received $875 from customers on their June accounts. 2. Received an invoice from an attorney for $600 for reviewing a contract with Center City Amarillo. (Payment due in 30 days; record as Professional fees) 3. Full-Scoop paid $2,500 in cash dividends to its shareholders. 4. Full-Scoop issued additional common stock for $3,000 cash. 5. Paid $750 to rent the food truck for four months. Record as Rent expense. 6. Paid $150 to a local party store to rent collapsible tables. 7. Purchased an advertising package on social media for $1,000 on account. 8. Purchased $1,950 of supplies on account. Record as Supplies expense. 9. Full-Scoop paid $1,200 on its June accounts. 10. Received $2,000 from food truck sales at various events. 11. Paid $600 to a local radio station to advertise the services of Full-Scoop Ice Cream Shop three times daily during September. 12. Full-Scoop signed a contract with the Center City group to provide free ice cream to guests of the Labor Day celebration. The contract requires Full-Scoop to provide a free double dip ice cream cone to the first 500 guests. If more than 500 guests are present, the additional ice cream cones will be $5 per guest. In accordance with the contract, Full-Scoop received $2,500 from Center City as an advance payment for the first 500 guests. 13. Purchased a new blast freezer for storing cakes on September 1 from Freezer-R- Us for $9,800. Full-Scoop made a $2,800 cash down payment and then signed a nine-month, 6% note (not account) for the remainder. 14. Paid wages of $1,075 to a cake decorator and an ice cream scooper. 15. Received $1,500 for providing cake and ice cream for two parties. 16. Served as a mobile ice cream shop for three events for $2,500. Received $1,000 cash with the remainder to be collected in November. 17. Paid an $7,200 insurance premium for a one-year insurance policy covering liability, theft, and fire. 2. Post the journalized transactions to the ledger (T-accounts} (general ledger tab of the worksheet). Identify the transactions using their respective numbers 1 through 21. The first transaction has been posted for you. 2 3. Compute ending balances in the T-accounts (general ledger) and prepare a trial balance as of October 31, 2020 (Trial Balances tab of the Working Papers). Column balances should equal $53,750 for the Trial Balance and the balance of Cash should be $16,410 4. Using the information below, prepare the following adjusting entries (Journal tab of the Working Papers) and then post them to the T-accounts (Ledger tab of the Working Papers). a. The insurance payment in transaction #17 was made on September 1 and covers the one-year period ending August 31, 2021. Adjust the insurance account to properly reflect the amount of this insurance that has expired. b. During the Labor Day celebration, Full-Scoop provided 633 guests ice cream cones for Center City. See the information in transaction # 12 to determine the amount of the accrued revenue to be billed to Center City of Amarillo. In addition, you need to recognize the revenue from the $2,500 advance payment. c. The $750 rental payment in transaction # 5 covered four months (September, a. The insurance payment in transaction #17 was made on September 1 and covers the one-year period ending August 31, 2021. Adjust the insurance account to properly reflect the amount of this insurance that has expired. b. During the Labor Day celebration, Full-Scoop provided 633 guests ice cream cones for Center City. See the information in transaction # 12 to determine the amount of the accrued revenue to be billed to Center City of Amarillo. In addition, you need to recognize the revenue from the $2,500 advance payment. c. The $750 rental payment in transaction #5 covered four months (September, October, November, and December). Only two months have expired. The remaining two months should be recorded as prepaid. d. Received a bill for August electricity totaling $350 which should be accrued. e. Two months interest should be accrued based on the note in transaction #13. Record the liability in accounts payable. f. There were $1,790 of Supplies actually on hand at October 31. g. Unpaid wages as of October 31 were $600. h. Depreciation of the new blast freezer is $200. 5. Prepare an adjusted trial balance (Trial Balances tab of the Working Papers). 6. Prepare an Income Statement, Statement of Retained Earnings and a Balance Sheet for the two-months ended October 31, 2020 (Statements tab of the Working Papers). Your net income should equal $12,545. On the balance sheet, show subtotals for "Total current assets" and "Property and Equipment." Use dollar signs ($) and double underlines appropriately. Do NOT use abbreviations in the financial statements. 7. Prepare closing entries in the journal and post the closing entries to T-accounts. Show ending balances in all ledger accounts. 8. Prepare a post-closing trial balance. Prepare journal entries for each of the summary transactions listed below (Journal tab of the Working Papers in Excel). The first transaction is journalized and posted for you. Explanations are not required. Use dollars but not cents. 1. Received $875 from customers on their June accounts. 2. Received an invoice from an attorney for $600 for reviewing a contract with Center City Amarillo. (Payment due in 30 days; record as Professional fees) 3. Full-Scoop paid $2,500 in cash dividends to its shareholders. 4. Full-Scoop issued additional common stock for $3,000 cash. 5. Paid $750 to rent the food truck for four months. Record as Rent expense. 6. Paid $150 to a local party store to rent collapsible tables. 7. Purchased an advertising package on social media for $1,000 on account. 8. Purchased $1,950 of supplies on account. Record as Supplies expense. 9. Full-Scoop paid $1,200 on its June accounts. 10. Received $2,000 from food truck sales at various events. 11. Paid $600 to a local radio station to advertise the services of Full-Scoop Ice Cream Shop three times daily during September. 12. Full-Scoop signed a contract with the Center City group to provide free ice cream to guests of the Labor Day celebration. The contract requires Full-Scoop to provide a free double dip ice cream cone to the first 500 guests. If more than 500 guests are present, the additional ice cream cones will be $5 per guest. In accordance with the contract, Full-Scoop received $2,500 from Center City as an advance payment for the first 500 guests. 13. Purchased a new blast freezer for storing cakes on September 1 from Freezer-R- Us for $9,800. Full-Scoop made a $2,800 cash down payment and then signed a nine-month, 6% note (not account) for the remainder. 14. Paid wages of $1,075 to a cake decorator and an ice cream scooper. 15. Received $1,500 for providing cake and ice cream for two parties. 16. Served as a mobile ice cream shop for three events for $2,500. Received $1,000 cash with the remainder to be collected in November. 17. Paid an $7,200 insurance premium for a one-year insurance policy covering liability, theft, and fire. 2. Post the journalized transactions to the ledger (T-accounts} (general ledger tab of the worksheet). Identify the transactions using their respective numbers 1 through 21. The first transaction has been posted for you. 2 3. Compute ending balances in the T-accounts (general ledger) and prepare a trial balance as of October 31, 2020 (Trial Balances tab of the Working Papers). Column balances should equal $53,750 for the Trial Balance and the balance of Cash should be $16,410 4. Using the information below, prepare the following adjusting entries (Journal tab of the Working Papers) and then post them to the T-accounts (Ledger tab of the Working Papers). a. The insurance payment in transaction #17 was made on September 1 and covers the one-year period ending August 31, 2021. Adjust the insurance account to properly reflect the amount of this insurance that has expired. b. During the Labor Day celebration, Full-Scoop provided 633 guests ice cream cones for Center City. See the information in transaction # 12 to determine the amount of the accrued revenue to be billed to Center City of Amarillo. In addition, you need to recognize the revenue from the $2,500 advance payment. c. The $750 rental payment in transaction # 5 covered four months (September, a. The insurance payment in transaction #17 was made on September 1 and covers the one-year period ending August 31, 2021. Adjust the insurance account to properly reflect the amount of this insurance that has expired. b. During the Labor Day celebration, Full-Scoop provided 633 guests ice cream cones for Center City. See the information in transaction # 12 to determine the amount of the accrued revenue to be billed to Center City of Amarillo. In addition, you need to recognize the revenue from the $2,500 advance payment. c. The $750 rental payment in transaction #5 covered four months (September, October, November, and December). Only two months have expired. The remaining two months should be recorded as prepaid. d. Received a bill for August electricity totaling $350 which should be accrued. e. Two months interest should be accrued based on the note in transaction #13. Record the liability in accounts payable. f. There were $1,790 of Supplies actually on hand at October 31. g. Unpaid wages as of October 31 were $600. h. Depreciation of the new blast freezer is $200. 5. Prepare an adjusted trial balance (Trial Balances tab of the Working Papers). 6. Prepare an Income Statement, Statement of Retained Earnings and a Balance Sheet for the two-months ended October 31, 2020 (Statements tab of the Working Papers). Your net income should equal $12,545. On the balance sheet, show subtotals for "Total current assets" and "Property and Equipment." Use dollar signs ($) and double underlines appropriately. Do NOT use abbreviations in the financial statements. 7. Prepare closing entries in the journal and post the closing entries to T-accounts. Show ending balances in all ledger accounts. 8. Prepare a post-closing trial balance.

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