A. Journal entry ?? required:adjustment entries at jan 31,2005? jan 02- the comp
ID: 2418456 • Letter: A
Question
A.
Journal entry ??
required:adjustment entries at jan 31,2005?
jan 02- the company borrowed $1000 from a bank with 12 percent note and a six month term.Both the principal and interest will be paid in 6 months
may31-$400 was paid to the supplies vendor as part of the $500 owed to the vendor from the Jan 6 purchased.the company only used $400 worth of the supplies in January
B.
lai 5ody Spa want as part of the company's imornlado GiGi Gi open opened a little shop called Just Apples as a sole proprietorship to sell her applesauce a. Gi started the business with $25,000 on July 1, 2006. ober 1, 2006, the company borrowed $10,000 from Local Bank at 12 percent. Gi b. On October 1, 2006, the d The loan was for one year company purchased $9.000 worth of apples for cash during the fiscal year and ad $1,000 worth len over on June 30, 2007 c. The com d. The company also purchased $1,000 worth of jars, lids, and labels for cash. None was eft on June 30, 2007 e. The company paid $18,000 for rent on the shop for 18 months, beginning July 1 2 00b, The shop had a fully equipped kitchen, and electricity costs were included with the rent. f. Just Apples sold $29,000 worth of applesauce for cash during the first fiscal year V g. Just Apples paid $1,000 in advertising fees. Required: From the given information, prepare the income statement. statement of owner's equity, and balance sheet for the fiscal year ending June 30, 2007. Then, pre- pare the closing entries.Explanation / Answer
A)
Jan 02: The adjustment entry
interest expense (db) 1000*12%*(1/12)= $200
Interest payable (cr) $200
may 31: The adjustment entry
Cash (cr) $400
Vendor payable (db)$400
Inventory (cr) $400
Expense (db)$400
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