Logan Miller started her own accounting firm, Miller Accounting, on June 1, 2021. Logan Miller wants to

Question:

Logan Miller started her own accounting firm, Miller Accounting, on June 1, 2021.

Logan Miller wants to prepare monthly financial statements, so adjusting journal entries are required on June 30. Selected transactions for June follow:

1. $900 of supplies were used during the month.

2. Utilities expense incurred but not yet recorded or paid on June 30, 2021, is $250.

3. Paid cash of $3,600 for a one-year insurance policy on June 1, 2021. The policy came into effect on this date.

4. On June 1, purchased offi ce equipment for $11,400 cash. It is being depreciated at $190 per month for 60 months.

5. On June 1, Logan signs a note payable for $10,000, 6% interest.

6. June 30 is a Wednesday and employees are paid on Fridays. Miller Accounting has two employees, who are paid $920 each for a five-day workweek that ends on Friday.

7. On June 15, received a $1,000 advance cash payment from a client for accounting services expected to be provided in the future. As at June 30, one half of these services had not been performed.

8. Invoices representing $1,700 of services performed during the month of June have not been recorded as at June 30.


Instructions

Prepare adjusting entries for the items above.

On July 4, Logan Miller receives and pays a utility bill for the month of June. Is it necessary to make an adjusting entry for June? Why or why not? If yes, specify the names and types of accounts that need to be adjusted and whether the accounts should be increased or decreased.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Accounting Principles Volume 1

ISBN: 978-1119502425

8th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

Question Posted: