es On July 1, 20X1, Tim Stein established his own Financial Services. Selected transactions for the...

 

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es On July 1, 20X1, Tim Stein established his own Financial Services. Selected transactions for the first few days of July follow. DATE TRANSACTIONS 20x1 July 1 Signed a lease for an office and issued Check 101 for $13,050 to pay the rent in advance for six months. 1 Borrowed money from Second National Bank by issuing a four-month, 6 percent note for $36,000; received $35,280 because the bank deducted the interest in advance. 1 Signed an agreement with Carter Corp. to provide financial services for one year at $5,900 per month; received the entire fee of $70,800 in advance. The $70,800 was credited to Unearned Financial Service Fees. 1 Purchased office equipment for $17,000 from Office Outfitters; issued a two-month, 12 percent note in payment. The equipment is estimated to have a useful life of six years and a $1,160 salvage value. The equipment will be depreciated using the straight-line method. 1 Purchased a one-year insurance policy and issued Check 102 for $1,620 to pay the entire premium. 3 Purchased office furniture for $16,900 from Furniture Warehouse; issued Check 103 for $8,400 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of five years and a $1,600 salvage value. The office furniture will be depreciated using the straight-line method. 5 Purchased office supplies for $1,810 with Check 104. Assume $500 of supplies are on hand July 31, 20x1. Required: 4 1. Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 20X1. 2. Record the adjusting journal entries that must be made on July 31, 20X1. Analyze: What balance should be reflected in Unearned Financial Service Fees at July 31, 20X1? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze What balance should be reflected in Unearned Financial Service Fees at July 31, 20x1? Uneamed financial service fees, July 31, 20X1 < Required 2 es On July 1, 20X1, Tim Stein established his own Financial Services. Selected transactions for the first few days of July follow. DATE TRANSACTIONS 20x1 July 1 Signed a lease for an office and issued Check 101 for $13,050 to pay the rent in advance for six months. 1 Borrowed money from Second National Bank by issuing a four-month, 6 percent note for $36,000; received $35,280 because the bank deducted the interest in advance. 1 Signed an agreement with Carter Corp. to provide financial services for one year at $5,900 per month; received the entire fee of $70,800 in advance. The $70,800 was credited to Unearned Financial Service Fees. 1 Purchased office equipment for $17,000 from Office Outfitters; issued a two-month, 12 percent note in payment. The equipment is estimated to have a useful life of six years and a $1,160 salvage value. The equipment will be depreciated using the straight-line method. 1 Purchased a one-year insurance policy and issued Check 102 for $1,620 to pay the entire premium. 3 Purchased office furniture for $16,900 from Furniture Warehouse; issued Check 103 for $8,400 and agreed to pay the balance in 60 days. The equipment has an estimated useful life of five years and a $1,600 salvage value. The office furniture will be depreciated using the straight-line method. 5 Purchased office supplies for $1,810 with Check 104. Assume $500 of supplies are on hand July 31, 20x1. Required: 4 1. Record the transactions in the general journal. Assume that the firm initially records prepaid expenses as assets and unearned income as a liability for the year 20X1. 2. Record the adjusting journal entries that must be made on July 31, 20X1. Analyze: What balance should be reflected in Unearned Financial Service Fees at July 31, 20X1? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Analyze What balance should be reflected in Unearned Financial Service Fees at July 31, 20x1? Uneamed financial service fees, July 31, 20X1 < Required 2

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