Using the account balances and additional adjustment information below, record adjusting journal entries. Adjustment information as of January 31, 20YY not already given in the original transaction(s):
Warehouse and office equipment was placed in service on January 1, 20YY-5 and is expected to last 10 years and has no salvage value. Cottonwood depreciates fixed assets on a straight-line Depreciation is rounded to the nearest dollar and assets are depreciated on a monthly basis (i.e. number of days in the month is not of consequence).
On February 2, Cottonwood received a $3,500 bill from PG&E for utilities consumed during January and the January AT&T bill in the amount of $350. The items are both treated as utility expense.
Liability insurance for the 20YY fiscal year was paid at the end of November 20YY-1. Liability insurance is assumed to be utilized uniformly monthly over the one-year policy period.

Prepare cash account and account receivables and income statement with closing entries
Ending Balance after all Entries & Adjustments
Cash: $ 18,782.00
A/R $ 134,390.00
Net Income (Loss) $ (20,233.00)

Transcribed Image Text:

G/L acct G/L Acct Long Text Cash (Bank of America checking account) 1001 1101 Accounts Receivable 1111 Allowance for doubtful accounts Goods Rcvd/Invoice Rcvd (third party) Resale Merchandise Inventory 1115 ....... 1201 Event Merchandise Inventory 1202 Office Supplies Prepaid Insurance Prepaid Rent Prepaid Advertising Deposits Warehouse and Office Equipment 1301 1302 1303 1304 1310 ................. 1401 1411 Accumulated depreciation-Equipment Buildings Accumulated depreciation- Buildings Rental Equipment Accumulated depreciation- Rental Equipment 1501 1511 1522 1532 1601 Land 2001 Accounts Payable Accrued Wages Payable Accrued Payroll Taxes Payable Accrued Sales Tax Payable Accrued Interest Payable 2002 2003 .*******. 2004 2005 2006 Deposits Owed to Customers Other Payable 2010 2015 Deferred Rental Income ............. Dividends Payable Current Maturities of Long-Term Debt Other Accrued Expenses Payable 2020 ****......... 2030 2099 2100 Notes Payables Common Stock-(no par) **..... 3000 **....... 3100 Retained Earnings Resale Merchandise Sales **.... 4001 ............ .......................... 4002 Event Merchandise Sales 4003 Equipment Rental Income 4099 Miscellaneous Revenue ............. .***............................... Purchase Discount 4100 4101 Warehouse and Office Equipment .............. 4102 Cash Discount 5001 Cost of Goods Sold - Resale Merchandise Sales ........... ............... Cost of Goods Sold - Event Merchandise Sales 5002 6001 Advertising Expenses Depreciation expense Insurance Expense 6002 .... ....................... 6003 6004 Interest expense Office Supplies Expense Rent Expense Salaries/Wages Expense .......... 6005 ........... 6006 6007 6008 6009 Shipping Expenses - Outbound ****....... Utilities Expense 6010 Computer Expense Bad Debt Expense ............ .................... 6011 ............... 6012 ........... Maintenance & Repair Shipping Expenses - Inbound Payroll Tax Expense Miscellaneous Expense 6013 6050 .............. 6099