(fruit $2,815; baskets $280). Sales tax was $360. Paid all sales tax owed for Ju

Question

(fruit $2,815; baskets $280). Sales tax was $360. Paid all sales tax owed for July to the Comptroller of Public Accounts 29. 7/31 ck #1013 30. 7/31 ck #1014 | Declared and paid a cash dividend of $50 to Fran Franco. Part Two Requirements Record Adjusting Entries: Record the following month end adjusting entries for the month of July. Write the adjusting journal entries in the practice set after the journal entries and make sure that there is an explanation for each entry. Then record the entries on Blackboard. $15 of supplies remained on hand. $1,500 of wages for the part-time help from El Paso Temp Services for July should be accrued. Do not worry about payroll taxes; Temp Services Inc. will handle these. a. b. 6 P a ge

Explanation / Answer

Adjusting Journal entries for the month of July Date Account titles Debit Credit 31-Jul Supplies expense $835 Supplies $835 (To record supplies expense for july) (850-15 = 835) 31-Jul Wages Expense $1,500 Wages payable $1,500 (wages accrued for part time help from Temp services Inc.) 31-Jul Depreciation expense $495 Accumulated Depreciation-Computer Equip. $45 Accumulated Depreciation-Refrigerator $100 Accumulated Depreciation-Delivery Van $350 (To record one month depreciation) Depreciation on straight line method Computer equipment Cost 2700 useful life 5 Depreciation per year (2700/5) 540 Depreciation per month (540/12) 45 Refrigerator Cost 13000 Salvage value 1000 useful life 10 Depreciation per year (12000/10) 1200 Depreciation per month (1200/12) 100 Delivery Van Cost 25000 Salvage value 4000 useful life 5 Depreciation per year (21000/5) 4200 Depreciation per month (4200/12) 350 31-Jul Insurance Expense $400 Prepaid Insurance $400 (To record one month insurance expense) Insurance Expense = $3600/9 = $400 per month 31-Jul Interest Expense $120 Interest Payable $120 (To record interest expense for one month on note payable for the Wells Fargo Bank) Interest Expense = $18000x8%x1/12=$120 31-Jul Rent Expense $1,500 Prepaid Rent $1,500 (To record rent expense for one month) Rent Expense = $9000/6 = $1500 per month 31-Jul Advertising Expense $275 Prepaid Advertising $275 (To record advertising expense from prepaid) Advertising Expense = $300-$25=$275

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