Question 2 (10 marks) Janes Technically Correct, a proprietorship, had a December 31 year end Required Record the initial and subsequent transaction for each of the following independent situations using the numerals to group the transaction June 01 Janes Technically Correct received $ 24,000 for a 12 month service contract December 31 A year end adjusting journal entry is required to update the balance January 13 Janes Technically Correct did $ 10,000 software updates for a client Payment will be received at the end of February February 28 A journal entry is required to record receipt of payment November 01 Janes Technically Correct purchased $ 7,000 office supplies on account December 31 Jane counted the office supplies and noted that there was $ 6,000 supplies on hand Thus, the balance needs to be updated May 01 Because of additional job contracts, Janes Technically Correct leased a computer for $900, which represented a 5 month rental contract October 01 Janes Technically Correct needs to adjust the prepaid account

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Question: Question 2 (10 marks) Janes Technically Correct, a proprietorship, had a December 31 year end. Required: Record the initial and subsequent transaction for each of

Question 2

(10 marks)

Janes Technically Correct, a proprietorship, had a December 31 year end.

Required:

Record the initial and subsequent transaction for each of the following independent situations using the numerals to group the transaction:

June 01: Janes Technically Correct received $ 24,000 for a 12-month service contract.

December 31: A year-end adjusting journal entry is required to update the balance.

January 13: Janes Technically Correct did $ 10,000 software updates for a client. Payment will be received at the end of February.

February 28: A journal entry is required to record receipt of payment.

November 01: Janes Technically Correct purchased $ 7,000 office supplies on account.

December 31: Jane counted the office supplies and noted that there was $ 6,000 supplies on hand. Thus, the balance needs to be updated.

May 01: Because of additional job contracts, Janes Technically Correct leased a computer for $900, which represented a 5-month rental contract.

October 01: Janes Technically Correct needs to adjust the prepaid account.

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