In: Accounting
Journalize the following adjustments.
1. Services performed but unbilled and uncollected at March 31 was $200.
2. Depreciation on equipment for the month was $250.
3. One-sixth of the insurance expired.
4. An inventory count shows $280 of cleaning supplies on hand at March 31.
5. Accrued but unpaid employee salaries were $1,080.
6. One month of the prepaid rent has expired.
7. One month of interest expense related to the note payable has accrued and will be paid April 1.
Mar.?1 |
Issued 10,000 shares of common stock for $15,000 cash. |
1 |
Borrowed $6,000 cash by signing a 6-month, 6%, $6,000 note payable. Interest will be paid the first day of each subsequent month. |
1 |
Purchased used truck for $8,000 cash. |
2 |
Paid $1,500 cash to cover rent from March 1 through May 31. |
3 |
Paid $2,400 cash on a 6-month insurance policy effective March 1. |
6 |
Purchased cleaning supplies for $2,000 on account. |
14 |
Billed customers $3,700 for cleaning services performed. |
18 |
Paid $500 on amount owed on cleaning supplies. |
20 |
Paid $1,750 cash for employee salaries. |
21 |
Collected $1,600 cash from customers billed on March 14. |
28 |
Billed customers $4,200 for cleaning services performed. |
31 |
Paid $350 for gas and oil used in truck during month (use Maintenance and Repairs Expense). |
31 |
Declared and paid a $900 cash dividend. |
1 | Accrued income | $ 200 | |
Service revenue | $ 200 | ||
(To record service performed but unbilled at March 31) | |||
2 | Depreciation expenses | $ 250 | |
Accumulated depreciation - Equipment | $ 250 | ||
(To record depreciation expense for the month) | |||
3 | Insurance expense ($2,400/6) | $ 400 | |
Prepaid insurance | $ 400 | ||
(To record insurance expense for the month) | |||
4 | Supplies expenses ($2,000-$280) | $ 1,720 | |
Supplies | $ 1,720 | ||
5 | Salaries and wages expense | $ 1,080 | |
Salaries and wages payable | $ 1,080 | ||
(To record accrued but unpaid salaries) | |||
6 | Rent expenses ($1,500/3) | $ 500 | |
Prepaid rent | $ 500 | ||
7 | Interest expenses ($6,000*6%/12) | $ 30 | |
Interest payable | $ 30 |