In: Accounting
TRANSACTIONS | |
1 | INVESTED $400,000 CASH FOR COMMON STOCK |
2 | PURCHASED LAND FOR CASH OF $54,000 |
3 | RECEIVED $25,000 CASH FROM A NOTES PAYABLE |
4 | PURCHASED EQUIPMENT FOR $34,000 with $5,000 CASH, REMAINING ON ACCOUNT |
5 | PAID RENT FOR $2,300 CASH |
6 | PURCHASED $3,950 IN SUPPLIES IN CASH |
7 | INCURRED ADVERTISING EXPENSE $2,300 ON ACCOUNTS PAYABLE |
8 | PERFORMED SERVICES $46,000, RECEIVED $4,000 CASH, BALANCE ON ACCOUNT |
9 | PAID $900 CASH ON DIVIDENDS |
10 | PREPAID INSURANCE FOR 2 YEARS OF $7,200 |
11 | PAID $4,000 CASH FOR UTILITIES |
12 | PAID $3,600 FROM ACCOUNTS PAYABLE |
13 | PAID $240 ON INTEREST EXPENSE |
14 | INCURRED SALARIES & WAGES PAYBLE FOR 3 OUT OF 5 DAYS FOR 2 EMPLOYEES AT $900 EACH AND PAID CASH OF $7,200 IN CASH. |
15 | RECEIVED $18,000 CASH FROM ACCOUNTS RECEIVABLE |
16 | RECEIVED $5,000 CASH FOR FUTURE SERVICES |
17 | REMAING BALANCE ON ACCOUNT OF SUPPLIES IS $2000 |
18 | EXPENSED UTILITIES ON ACCOUNT FOR $450.00 |
19 | INSURANCE EXPENSED FOR 1 MONTH |
20 | EQUIPMENT DEPRECIATION IS OF A 5 YEAR SCHEDULE, INDICATE EXPENSE FOR THE MONTH |
21 | PERFORMED SERVICES FOR $2,700 ON ACCOUNT |
ADJUSTING ENTRIES | |
22 |
PERFORMED SERVICES ON ACCOUNT WAS ACTUALLY $27,000 NOT $2,700 |
PREPARE T-ACCOUNTS |
Depreciation method is assumed as Straight Line method .
Balances B/f is not mentioned for Expenses and Income A/c but calculated as balance C/F
Balances B/f is mentioned only for Assets and liabilities whose balances are brought forwarded in Balance sheet.
Salaries and wages are accounted as given in question $ 7200 in cash