A dog training business began on December 1. The following transactions occurred during its first month....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A dog training business began on December 1. The following transactions occurred during its first month. December 1 Receives $25,000 cash as an owner investment in exchange for common stock. December 2 Pays $6,600 cash for equipment. December 3 Pays $3,900 cash (insurance premium) for a 12-month insurance policy. Coverage began on December 1. December 4 Pays $1,100 cash for December rent expense. December 7 Provides all-day training services for a large group and immediately collects $1,350 cash. December 8 Pays $225 cash in wages for part-time help. December 9 Provides training services for $2,500 and rents training equipment for $650. The customer is billed $3,150 for these services. December 19 Receives $3,150 cash from the customer billed on Dec. 9. December 20 Purchases $2,050 of supplies on credit from a supplier. December 23 Receives $1,700 cash in advance of providing a 4-week training service to a customer. December 29 Pays $1,325 cash as a partial payment toward the accounts payable of Dec. 20. December 30 Distributed a $525 cash dividend to the owner. Information for month-end adjustments follows: December 31 One month of the 12-month, $3,900 insurance policy is expired by December 31. This leaves $3,575 not yet expired. December 31 A physical count of supplies on December 31 shows that only $1,225 of supplies remain of the $2,050 supplies purchased. December 31 The $6,600 of equipment purchased at the beginning of December has a useful life of 5 years and will be worth nothing at the end of 5 years (60 months). The business uses straight-line depreciation to allocate the $6,600 net cost over 60 months. On December 31, 1 month of depreciation must be recorded. December 31 The business agreed on December 23 to provide a 4-week training service to a customer for a fixed fee of $1,700 paid in advance. By December 31, the business has provided 1 of the 4 weeks of services and earned one-fourth of the fee. No revenue is yet recorded. December 31 On December 31, wages of $625 are owed to a part-time employee for work done over the past 3 weeks. Those wages are not yet paid or recorded. December 31 The business agreed to provide 6 weeks of training services to a customer for a fee of $4,350, or $725 per week. The customer agrees to pay the full $4,350 at the end of 6 weeks when services are complete. By December 31, 2 weeks of services have been provided, but the business has not yet billed the customer or recorded the 2 weeks of services provided. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Post Closing Prepare the required journal entries, adjusting entries, and closing entries. A dog training business began on December 1. The following transactions occurred during its first month. December 1 Receives $25,000 cash as an owner investment in exchange for common stock. December 2 Pays $6,600 cash for equipment. December 3 Pays $3,900 cash (insurance premium) for a 12-month insurance policy. Coverage began on December 1. December 4 Pays $1,100 cash for December rent expense. December 7 Provides all-day training services for a large group and immediately collects $1,350 cash. December 8 Pays $225 cash in wages for part-time help. December 9 Provides training services for $2,500 and rents training equipment for $650. The customer is billed $3,150 for these services. December 19 Receives $3,150 cash from the customer billed on Dec. 9. December 20 Purchases $2,050 of supplies on credit from a supplier. December 23 Receives $1,700 cash in advance of providing a 4-week training service to a customer. December 29 Pays $1,325 cash as a partial payment toward the accounts payable of Dec. 20. December 30 Distributed a $525 cash dividend to the owner. Information for month-end adjustments follows: December 31 One month of the 12-month, $3,900 insurance policy is expired by December 31. This leaves $3,575 not yet expired. December 31 A physical count of supplies on December 31 shows that only $1,225 of supplies remain of the $2,050 supplies purchased. December 31 The $6,600 of equipment purchased at the beginning of December has a useful life of 5 years and will be worth nothing at the end of 5 years (60 months). The business uses straight-line depreciation to allocate the $6,600 net cost over 60 months. On December 31, 1 month of depreciation must be recorded. December 31 The business agreed on December 23 to provide a 4-week training service to a customer for a fixed fee of $1,700 paid in advance. By December 31, the business has provided 1 of the 4 weeks of services and earned one-fourth of the fee. No revenue is yet recorded. December 31 On December 31, wages of $625 are owed to a part-time employee for work done over the past 3 weeks. Those wages are not yet paid or recorded. December 31 The business agreed to provide 6 weeks of training services to a customer for a fee of $4,350, or $725 per week. The customer agrees to pay the full $4,350 at the end of 6 weeks when services are complete. By December 31, 2 weeks of services have been provided, but the business has not yet billed the customer or recorded the 2 weeks of services provided. Requirement General Journal General Ledger Trial Balance Income Statement St Retained Earnings Balance Sheet Post Closing Prepare the required journal entries, adjusting entries, and closing entries.
Expert Answer:
Answer rating: 100% (QA)
General Journal for Dog Training Business December Transactions 1 Owner Investment Date Account Titl... View the full answer
Related Book For
Horngrens Financial and Managerial Accounting
ISBN: 978-0133866292
5th edition
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
Posted Date:
Students also viewed these accounting questions
-
A dog training business began on December 1. The following transactions occurred during its first month. December 1 Receives $23,000 cash as an owner investment in exchange for common stock. December...
-
Students are to complete journal entries for each month, including adjusting and closing, trial balances, and financial statements consisting of Income Statement, Statement of Retained Earnings, and...
-
On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account balances: The $30,000 beginning balance of inventory consists of 300 units, each costing $100. During...
-
Assume that the two circuits in Fig. 19.135 are equivalent. The parameters of the two circuits must be equal. Using this factor and the z parameters, derive Eqs. (9.67) and (9.68) 73 te
-
What advice would you give in this ethical dilemma? Brittani is serving as interim editor of the company newsletter. She receives an article written by the company president describing, in abstract...
-
Youve just taken a job at the central bank and are given the job of calculating the appropriate nominal interest rate for a number of different Treasury bonds with different maturity dates. You have...
-
LRF Printing provides printing services to many different corporate clients. Although LRF bids most jobs, some jobs, particularly new ones, are negotiated on a cost-plus basis. Cost-plus means that...
-
(a) X Ltd. is studying the possible acquisition of Y Ltd. by way of merger. The following data are available in respect of both the companies. Particulars Market Capitalization (Rs.) Gross Profit...
-
Suppose that Dakota and Tyler are involved in a car accident: specifically, Dakota runs into Tyler. The damage is $200,000. Dakota's policy limit is $50,000, while Tyler's is $150,000. How much will...
-
Solve and Answer the following questions. Sales revenue Sales returns and allowances Sales Discount Net sales Beginning inventory Ending inventory Purchases Purchase returns and allowances Freight-in...
-
You are the senior shift manager for an exciting club/restaurant at South Padre Island called, The Hypnotic Wave. You completed a test run of the business with the owner last quarter (February). The...
-
Given the following data for demand at the XYZ Company, calculate the monthly forecast using a 3-month moving average and simple exponential smoothing (SES) with a = 0.4. When using SES, use the...
-
Solution guidelines For problems that require you to provide an algorithm, you must provide: 1. pseudocode and, if helpful, a precise description of the algorithm in English. As always, pseudocode...
-
Tony and Jeannie Nelson are married and file a joint return. They have four children whose ages are: 12,15,19 & 23. The three youngest live at home with their parents and qualify as their dependents....
-
Compare three theories of how time travel works and explain how they could lead to completely different outcomes
-
Activator rod AB exerts on crank BCD a force P directed along line AB. Knowing that P must have a 100-N component perpendicular to arm BC of the crank, determine (a) The magnitude of the force P, (b)...
-
According to the ACFE 2016 Report to the Nations, which of the following is the most frequent source of initial fraud detection? 1. A call to the police 2. Tips 3. Accidental discovery 4. The...
-
Select the statement that is most accurate with regard to materiality. 1. Materiality does not create discretionary choices for managers, executives, and auditors. 2. Earnings management is not...
-
Which of the following is not considered a red flag (indicator) of fraud? 1. Accounting anomalies 2. Analytical inconsistencies 3. Nonfinancial numbers 4. Behavioral anomalies
Study smarter with the SolutionInn App