Question: Rhonda Richards opened a web consulting business called Diary Plus and recorded the following transaction in its first month of operations. I need all the






GL0303 (Algo) - Extension of Problem 2-1A LO P1, P2, P3, P4, P5 Rhonda Richards opened a web consulung business called Dairy Plus and recorded the following transactions in its first month of operations. Apri1 1 Michards invests $89, bee cash along with office equipnent valued at $35, 8ee in the company in exchange for comnon stock. April 2 The company prepaid $10,800 cash for twelve nonths' rent for office space. The conpany's policy is record prepaid expenses In balance sheet accounts. Apri1 3. The conpany made credit purctiases for 38,96e in office equipment and 34,200 in office supplies. Paysent is due within 10 days. April 6 the conpany completed servicas for a client and innedately recelved 37 , bee cash. April 9 The conpany completed a $15,eee project for a cilent, who eust pay within 3e days. Apri1 13 The conpany baid $13,100 cash to sectle the account payable criated on Apri1 3. Apel1 19 the company pa1d 33,120 cash for the prentue on a 12-month insurance policy. The coopany's policy is record prepaid expenses in balance sheet accounts. Apri1 22 The company recelved 34,56e cash as partial paytent for the work coopleted on Apri1 9. Apri1 25 The conpany conpleted work for another client for 35,700 on credit. Apri1 2 I the coopany pase $5,760 cash in dividends. Apri1 29 The conpany purchased $2,400 of additional office suppities on credit: Apri1 3e the conpany paid 32,100 cash fon this month's utility bi11. Descriptions of items that requlre adjusting entries on Aprll 30 , follow. a) On April 2, the company prepald $10.800 cash for twelve months' fent for office space. b) The balance in Prepaid insurance represents the premtum paid for a 12-month insurance policy the policy's coverage began on Apru 1 c) Ofice supptles on hand as of Aprif 30 total $1,800. d) Straight-ine depreciation of office equipment, based on a 5 -year life and a $7,900 salvage value, is $600 per month. e) The conpany has completed work for a client, but has not yet billed the $2200 fee 1) Wages due to employees, but not yet paid, as of Apnil 30 toral $2.800 DNiRYPLUS Tral Ealanes: Hprid 30,2032 For transactions a-f, review the unadjusted balance and prepare the adjusting entry necessary to correctly repori eamed or the expense incurred. Each adjustment is posted automatically to the general ledger and trial balance as "record entry
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
