Question

Part 1:

1. Prepare the journal entries for each set of transaction data below.
2. Post the transactions in the ledger.
3. Extract the unadjusted trial balance as of January 31 of this current year.

Part 2:

For this section, prepare the following adjusted journal entries.

1. Record depreciation of $1,000 for equipment.
2. Accrue unpaid wages of $715.
3. Accrue unpaid utilities of $420.

Part 3:

1. Prepare an Adjusted Trial Balance as of January 31 of this year.

Transaction data

Jonathan Swiss owns the Sports Watch Repairs Store. He provides the transactions relating to the month of January this year.

January 2          Invested $10,000 cash as well as providing watch repair equipment with a valuation of $4,800 (Hint: Treat watch repair equipment as part of capital.)

January 4             Paid first month's rent of $900 cash

January 6             Received $2,500 cash for watch repairs

January 8             Purchased supplies on account from Sears for $500

January 9             Repaired a vintage watch on account for $1,500

January 9             Paid $575 cash for wages

January 12           Purchased watch repair equipment for $1,200 cash

January 13           Received $5,500 cash from watch repairs

January 16           Purchased equipment on account from Sears for $1,000

January 18           Paid $520 cash for advertising expense

January 20           Withdrew $750 cash for personal expenses

January 22           Received $950 cash on account for work done on January 9

January 23           Paid $475 cash for wages

January 26           Received $7,000 cash from watch repairs

January 27           Paid $850 cash on account for the January 16 transactions

January 30           Received $480 cash from repairs previously done on an antique watch

Thank you.

Answer 1

Answer :

Journal Entries

Sports Watch Repair Store

For the month of January

Date	Particulars	Debit($)	Credit($)
Jan 02	Capital A/c Dr	14,800.00
	To Cash		10,000.00
	To Watch repair equipment		4,800.00
	(Being cash and equipment invested in business)
Jan 04	Rent A/c Dr	900.00
	To Cash		900.00
	(Being rent paid)
Jan 06	Cash A/c Dr	2,500.00
	To Watch repairs		2,500.00
	(Being cash received for repairs)
Jan 08	Purchase A/c Dr	500.00
	To Sears		500.00
	(Being purchases made on credit)
Jan 09	Debtors A/c Dr	1,500.00
	To Repairs		1,500.00
	(Being Repaired a watch o n credit )
Jan 09	Wages A/c Dr	575.00
	To Cash		575.00
	(Being wages paid in cash)
Jan 12	Watch repair equipment A/c Dr	1,200.00
	To cash		1,200.00
	(Being equipment purchased for cash)
Jan 13	Cash A/c Dr	5,500.00
	To Watch repairs A/c		5,500.00
	(Being Cash received for repairs )
Jan 16	Watch repair equipment A/c Dr	1,000.00
	To Sears		1,000.00
	(Being equipment purchased on credit )
Jan 18	Advertisement expense A/c Dr	520.00
	To Cash		520.00
	(Being cash paid for advertisement)
Jan 20	Drawings A/c Dr	750.00
	To Cash		750.00
	(Being cash paid for personal expenses)
Jan 22	Cash A/c Dr	950.00
	To Debtors		950.00
	(Being cash received for sale made on January 9)
Jan 23	Wages A/c Dr	475.00
	To Cash		475.00
	(Being wages paid in cash )
Jan 26	Cash A/c Dr	7,000.00
	To Watch repairs		7,000.00
	(Being cash received for repairs)
Jan 27	Sears A/c Dr	850.00
	To Cash		850.00
	(Being cash paid to creditors)
Jan 30	Cash A/c Dr	480.00
	To Repairs		480.00
	(Being cash received for repairs)
Jan 31	Depreciation A/c Dr	1000.00
	To watch repair equipment		1000.00
	(Being depreciation charged)
Jan 31	Accrued wages A/c Dr	715.00
	To Wages		715.00
Jan 31	Accrued utilities A/c Dr	420.00
	To utilities		420.00

Cash Account:

Date	Particulars	Debit ($)	Date	Particulars	Credit ($)
01 Jan	Jonathan Swiss's Capital	10,000	04 Jan	Rent expenses	900
06 Jan	Service performed	2,500	09 Jan	Wages expenses	575
13 Jan	Service performed	5,500	12 Jan	Equipment	1,200
22 Jan	Accounts receivable	950	18 Jan	Advertising expenses	520
26 Jan	Service performed	7,000	20 Jan	Jonathan Swiss's Drawings	750
30 Jan	Accounts receivable	480	23 Jan	Wages Expenses	475
			27 Jan	Account payable	850
			31 Jan	Balance	21,160
	Total	26,430		Total	26,430

Service Performed

Date	Particulars	Debit	Date	Particulars	Credit
			06 Jan	Cash	2,500
			09 Jan	Account receivable	1,500
			13 Jan	Cash	5,500
			26 Jan	Cash	7,000
31 Jan	Balance	16,500
	Total	16,500		Total	16,500

Account Receivable

Date	Particulars	Debit	Date	Particulars	Credit
09 Jan	Service performed	1,500	22 Jan	Cash	950
			30 Jan	Cash	480
			31 Jan	Balance	70
	Total	1,500		Total	1,500

Accounts Payable

Date	Particulars	Debit (S)	Date	Particulars	Credit(S)
27 Jan	Cash	850	08 Jan	Supplies	500
			16 Jan	Equipment	1,000
31 Jan	Balance	650
	Total	1,500		Total	1,500

Supplies Account

Date	Particulars	Debit ($)	Date	Particulars	Credit ($)
08 Jan	Accounts Payable	500
			31 Jan	Balance	500
	Total	500		Total	500

Equipment

Date	Particulars	Debit($)	Date	Particulars	Credit ($)
01 Jan	Jonathan Swiss's Capital	4,800
12 Jan	Cash	1,200
16 Jan	Accounts payable Sears	1,000	31 Jan	Balance	7,000
	Total	7,000		Total	7,000

Wages Expenses

Date	Particulars	Debit ($)	Date	Particulars	Credit ($)
09 Jan	Cash	575
23 Jan	Cash	475
			31 Jan	Balance	1,050
	Total	1,050		Total	1,050

Rent Expenses

Date	Particulars	Debit ($)	Date	Particulars	Credit ($)
04 Jan	Cash	900
			31 Jan	Balance	900
	Total	900		Total	900

Advertising Expenses

Date	Particulars	Debit ($)	Date	Particulars	Credit ($)
18 Jan	Cash	520
			31 Jan	Balance	520
	Total	520		Total	520

Jonathan Swiss's Capital

Date	Particulars	Debit ($)	Date	Particulars	Credit ($)
			01 Jan	Cash	10,000
31 Jan	Balance	14,800	01 Jan	Equipment	4,800
	Total	14,800

Jonathan Drawings

Date	Particulars	Debit ($)	Date	Particulars	Credit ($)
20 Jan	Cash	750
			31 Jan	Balance	750
	Total	750		Total	750