Question

Below are the transactions for September.

September 1                 The owner contributed $20,000 to the business to start the operations.

September 2                 Purchased a fully equipped hotdog cart for $15,000. Paid $5,000 upfront and put the remainder of the balance on account.

September 3                 Purchased hotdogs, sodas and consumable supplies for $500.

September 3                 Purchased 3 months of advertising services from the HB Times newspaper for $300.

September 4                 Sold $200 worth of hot dogs to customers for cash.

September 5                 Sold $300 worth of hot dogs to customers for cash.

September 6                 Sold $100 worth of hotdogs the HBPD on account.

September 8                 The HB surfing contest company asked me to supply hotdogs for their contests and paid $600 in advance for a total of 6 contests.

September 9                 Hired a person to help with the surf contest sales. Paid that person $100 for services performed.

September 10               Purchased hotdogs, sodas and consumable supplies for $500.

September 12               Sold $200 worth of hot dogs to customers for cash.

September 18               The city of HB requested that you provide $500 worth of food for an event they are holding at the pier this coming weekend. The job was completed. The city of HB paid $200 and you billed the difference.

September 25               HBPD paid the balance on account due from September 6.

September 26               Received propane (utility) bill, $100, which was put on account.

September 30               Took out a small business loan from the bank for $15,000 to expand the business. The bank approved the loan due one year from today.

September 30               The owner withdrew $200 in the form of dividends.

Adjustments

1. Expired advertising.
2. Provided hotdogs for 3 surfing contests
3. Depreciation of hotdog cart, $300.

Instructions

1. Journalize and post adjusted journal entries based on the adjustments data provided.

Answer 1

Date	Account Titles	Debit	Credit
1 Sep	Cash	$20,000
	Capital		$20,000
2 Sep	Equipment	$15,000
	Cash		$5,000
	Accounts Payable		$10,000
3 Sep	Purchase	$500
	Cash		$500
3 Sep	Prepaid Advertising	$300
	Cash		$300
4 Sep	Cash	$200
	Sales Revenue		$200
5 Sep	Cash	$300
	Sales Revenue		$300
6 Sep	Accounts Receivable	$100
	Sales Revenue		$100
8 Sep	Cash	$600
	Unearned revenue		$600
9 Sep	Salaries & Wages expense	$100
	Cash		$100
10 Sep	Purchases	$500
	Cash		$500
12 Sep	Cash	$200
	Sales revenue		$200
18 Sep	Cash	$200
	Accounts receivable	$300
	Sales revenue		$500
25 Sep	Cash	$100
	Accounts receivable		$100
26 Sep	Utilities expense	$100
	Accounts payable		$100
30 Sep	Cash	$15,000
	Bank loan payable		$15,000
30 Sep	Dividends	$200
	Cash		$200
Adjustments:
30 Sep	Advertising expense	$300
	Prepaid Advertising		$300
30 Sep	Unearned Revenue($600 / 6) * 3	$300
	Sales revenue		$300
30 Sep	Depreciation expense	$300
	Accumulated Depreciation		$300
Closing entries:
30 Sep	Sales revenue	$1,600
	Capital		$1,600
30 Sep	Capital	$1,800
	Purchases		$1,000
	Salaries & wages		$100
	Utilities expense		$100
	Depreciation expense		$300
	Advertising expense		$300
30 Sep	Capital	$200
	Dividends		$200