ACG$2011$ Milestone Assignment #$1$ Instructions Version $23.$A

$\backslash$table$[[,,31],[11,$Cash,$32],[12,$Accounts receivable,$33],[13,$All. for doubtful accts,$34],[14,$Supplies,$41],[15,$Prepaid rent,$51],[16,$Equipment,$52],[17,$Acc. depr. $-$ Equip.,$53],[18,$Van,$54],[19,$Acc. depr. $-$ Van,$55],[21,$Notes payable,$56],[22,$Accounts payable,$57],[23,$Unearned revenue,$58],[,,59],[24,$Wages payable,$91]]$

J$.$ Harris, Capital

J$.$ Harris, Drawing

S$.$ Grant, Capital

S$.$ Grant, Drawing

Services revenue

Wages expense

Bad debt expense

Rent expense

Utilities expense

Van expense

Supplies expense

Interest expense

Depreciation expense

Miscellaneous expense

Income summary

Step $1$: Journalize the following transactions.

Enter the following on page $1$ of the general journal.

Dr

June $1$ J$.$ Harris contributes cash of $$50,000$ and accounts receivable of $$20,000$ to a new partnership, Top Tier Interior Design. S$.$ Grant contributes $$12,000$ cash and $$1,000$ of supplies to the partnership. The partners agree that $$1,500$ is a reasonable amount for the allowance for doubtful accounts for the contributed accounts receivable.

Concra

Interest payable

Paid rent for the June through August, $$3,000.$

Purchased equipment paying cash, $$5,000.$

Purchased a used van for $$30,000.$ The partnership paid $$10,000$ cash as a down payment and signed a note for the remainder.

Received an advance payment of $$9,000$ for services to be provided in the future.

Purchased supplies on credit, $$700.$

Received cash for job completed, $$15,550.$

Recorded jobs completed on account and sent invoices to customers, $$12,200.$

Received an invoice in the mail for van$-$related expenses, to be paid in September $$1,200.$

Paid miscellaneous expenses, $$200.$

Paid utilities expense, $$300.$

Enter the following on page $2$ of the general journal.

$30$ Paid wages of employees, $$6,200.$

$30$ The partners agree to write off $$500$ of their accounts receivable as uncollectible.

$30$ Received cash from customers on account, $$7,000.$

$30$ Paid creditor a portion of the amount owed for supplies purchased earlier in the month, $$250.$

$30$ J$.$ Harris withdrew cash for personal use, $$2,500.$