Start here: AnalyzingEconomic Events- from Source Documents

Part - A

The following transactions occurred for JJAY New Publicly Traded Company prior to and during the first month of operations - September 2023

First, show how each transaction impact effect(s) on the accounting equation

Also, study each transaction shown below and record the necessary journal entries skipping a line between each entry.

Post each journal entry transaction to their respective modified "T"ledger accounts using a lined (ruled) paper

a.

The $250,000 cash deposited in the business bank account received from issuing 100,000 shares with par value of $2.50 per share

b.

The owner paid $108,000 cash for land.

c.

The owner borrowed $300,000 on a mortgage payable at 8% interest.

d.

The owner paid $285,400 cash for a building.

e.

Equipment was purchased for $48,000, paying $12,000 cash; and the balance owed on a note payable.

f.

Furnishings were purchased for $120,000 cash.

g.

Linen inventory was purchased for $7,894 cash.

h.

Supplies were purchased for $3,200 on account.

i.

Vending inventory was purchased for $540 cash.

j.

Room sales revenue during the month was $58,740; 98% cash and 2% credit cards.

k.

Vending sales revenue from vending machines was $880 cash.

l.

Wages of $3,120 cash were paid.

m.

The owner paid $3,200 on accounts payable.

n.

The owner paid $4,200 on an annual liability and casualty insurance policy.

o.

The owner paid $1,600 on the mortgage payable and $1,728 for interest.

Part - B

After journalizing and posting the operating transactions for the month of Sept. 2023, journalize the

following adjusting entries (Use separate entries for clarity.):

1

Estimated closing value of the linen inventory is $7,220.

2

Wages earned by employees but unpaid are $416.

3

One-twelfth of the prepaid insurance has been consumed.

4

Interest owing, but not yet paid on the equipment note payable account is 1% of the balance owing at month-end.

5

Equipment has a 10-year life and a $3,000 residual value; SL depreciation.

6

Furnishings have an 8-year life and a $7,000 residual value; SL depreciation.

7

Building has a 20-year life and a $42,000 residual value; SL depreciation. 8.

8

Supplies used during the first month are $533.

Part - C

the unadjusted trial balance, adjust for the entries in Part B and Adjusted Trial Balance