Prepare journal entries for the following transactions for ARS Enterprises. Do not make any adjusting entries...

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Prepare journal entries for the following transactions for ARS Enterprises. Do not make any adjusting entries (omit explanations). 1. The owner invested $10,000 cash and $2,000 of equipment in the business. 2. Received $4,000 advance on a management consulting engagement. 3. Paid insurance expense for the month of $120. 4. Hired an administrative assistant who will be paid $600 per week. 5. Purchased supplies on account for $800 (debit asset account). 6. Completed services and billed client $900 for services rendered (use Service Revenue account) 7. Performed services for clients, for which $1,300 was billed to client and $670 was collected in cash. 8. Paid administrative assistant $1,800 for three weeks of work. The following data relate to the accounts of Hull Company: a. Equipment was purchased for $40,000 on January 1, 2025. This equipment is depreciated at a rate of 10% per year. b. The Supplies account shows a balance of $2,000 on December 31, 2025. A physical count of the supplies on hand at this date reveals a total of $1,000 available. c. Hull Company signed a 12-month note payable in the amount of $50,000 on September 1, 2025. Principal and interest are due on November 1, 2026. The note requires interest at an annual rate of 12%. d. Service Revenue was credited for $900 on June 1, 2025. The amount represents a one-year advance payment for services to be performed by Hull Company through May 31, 2026. e. Hull Company owns an investment in bonds of another corporation that pay annual interest of $8,000. These bonds were purchased on April 1, 2025, and the next interest payment will be received on April 1, 2026. f. Unpaid salaries and wages at year-end amount to $750. g. A two-year insurance policy was purchased on June 1, 2025. The $1,200 insurance premium was paid on that date and was debited to Prepaid Insurance. h. It was estimated that $1,000 of accounts receivable would not be collectible. Assume that no allowance for doubtful accounts has been made. Instructions Prepare the necessary adjusting journal entries indicated by each item for the year ended 12/31/2025 (omit explanations). Prepare journal entries for the following transactions for ARS Enterprises. Do not make any adjusting entries (omit explanations). 1. The owner invested $10,000 cash and $2,000 of equipment in the business. 2. Received $4,000 advance on a management consulting engagement. 3. Paid insurance expense for the month of $120. 4. Hired an administrative assistant who will be paid $600 per week. 5. Purchased supplies on account for $800 (debit asset account). 6. Completed services and billed client $900 for services rendered (use Service Revenue account) 7. Performed services for clients, for which $1,300 was billed to client and $670 was collected in cash. 8. Paid administrative assistant $1,800 for three weeks of work. The following data relate to the accounts of Hull Company: a. Equipment was purchased for $40,000 on January 1, 2025. This equipment is depreciated at a rate of 10% per year. b. The Supplies account shows a balance of $2,000 on December 31, 2025. A physical count of the supplies on hand at this date reveals a total of $1,000 available. c. Hull Company signed a 12-month note payable in the amount of $50,000 on September 1, 2025. Principal and interest are due on November 1, 2026. The note requires interest at an annual rate of 12%. d. Service Revenue was credited for $900 on June 1, 2025. The amount represents a one-year advance payment for services to be performed by Hull Company through May 31, 2026. e. Hull Company owns an investment in bonds of another corporation that pay annual interest of $8,000. These bonds were purchased on April 1, 2025, and the next interest payment will be received on April 1, 2026. f. Unpaid salaries and wages at year-end amount to $750. g. A two-year insurance policy was purchased on June 1, 2025. The $1,200 insurance premium was paid on that date and was debited to Prepaid Insurance. h. It was estimated that $1,000 of accounts receivable would not be collectible. Assume that no allowance for doubtful accounts has been made. Instructions Prepare the necessary adjusting journal entries indicated by each item for the year ended 12/31/2025 (omit explanations).

Answer rating: 100% (QA)

a Depreciation expense 4000 Accumulated depreciation 4000 b Supplies expense 1000 Supplie... View the full answer