Question

Mia Salón, a beauty salon, started on February 1, 2020. Use the information provided to complete the exercise.

Record the following transactions in the journal.

Records the move to the ledger.

Prepare the trial balance without adjustments (unadjusted trial balance).

Prepare trim inputs

Prepare the adjusted trial balance

Make the financial statements:

Income Statement

Statement of Owner Equity

Balance Sheet

g. Make closing entries

h. Prepare the trial balance after closing (post closing trial balance)

Date

Transaction

February 1

$ 18,000 in cash was invested to start the business.

two

Salon equipment was purchased for $ 9,000 on credit.

3

Materials were purchased for a total of $ 1,500.

4

A prepaid insurance policy for $ 11,000 was paid for effective February 1. With a duration of 11 months.

5

A service was performed to a customer (fee earned) in the amount of $ 250 on credit.

12

A service was held to prepare the entire entourage for a $ 1,000 credit wedding.

16

500 paid in cash promotions

twenty

The customer who had the job done on February 12 paid $ 500.

24

$ 500 was paid for utility expenses.

29

A withdrawal was made for personal use in the amount of $ 200.

30

Employees were paid wages of $ 1,100.

Adjustment inputs:

$ 700 of materials were used for the month.

The first month of the prepaid insurance was consumed.

There was a depreciation expense of $ 100.00

Answer 1

	Account Name	Debit($)	Credit($)
Feb-20	Cash	18000
	Common Stock/capital		18000
02-Feb	Equipment	9000
	Account payable		9000
03-Feb	Raw material inventory	1500
	Accounts payable		1500
04-Feb	Prepaid Insurance	11000
	Cash		11000
05-Feb	Accounts receivable	250
	Service revenue/fee earned	250
12-Feb	Accounts receivable	1000
	Service revenue		1000
16-Feb	Promotions expense	500
	Cash		500
20-Feb	Cash	500
	Accounts receivable		500
24-Feb	Utility expenses	500
	Cash		500
29-Feb	Drawings	200
	Cash		200
	Wages	1100
	cash		1100
	Adjusting entries
29-Feb	Work in process	700
	Raw material inventory		700
29-Feb	Insurance expense	1000
	Prepaid insurance		1000
29-Feb	Depreciation expense	100
	Accumulated depreciation	100

Note: Expired/consumed Insurance expense
11000 * 1/11 = $ 1000.