Journal entries Adjusting Journal entries for the month of July Date Account tit
ID: 2436296 • Letter: J
Question
Journal entries
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
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
Depretldiu d. One month of theprepaid insunce has expired. e. Accrue one month o trest expense on the note for the Wells Fargo Bank note. f. One month of the pepad rent has expired. g. $25 of prenaie advertising mains on hand h. The-mentand interest on th omputer was done in transaction #27. Part Three Requirements Make a spreadsheet in Excel for each T-account in the Chart of Accounts. As you write each journal and adjusting journal entry make sure that you enter it into the T-Account. After all entries have been made calculate the ending balance in each account. Once all balances are prepared then enter the balances of each account into Blackboard by first entering Dr or Cr then the dollar amount. See the following example. Dr $1,000.00 or Cr $%1,000.00 if no balance write Dr $0.00 or Cr $0.00 Part Four Requirements Correct Errors Correct any errors that you made on the journal entries and T I, Il and II. Both the debits and ime credits should equal each other Bank Reconciliation: Us the cash balance per books (see the amount on Part IlIl of the T- ccounts) and the hank state ment ending balance, prepare a bank reconciliation. This should be prepared using Excel and must contain the proper heading as well as the reconciliation information. Note: Assume that any errors are mede by the bank. nciliation Adiustments: Aft have prepared the bank reconciliation youExplanation / Answer
Part Three Requirement T-accounts 10000 Cash Common Stock Refrigerator Equipment Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 2-Jul $45,000 3-Jul $3,600 2-Jul $45,000 5-Jul $13,000 5-Jul $18,000 5-Jul $13,000 23-Jul $4,000 5-Jul $25,000 23-Jul $10,760 6-Jul $1,200 25-Jul $3,240 6-Jul $300 31-Jul $4,500 13-Jul $2,000 22-Jul $850 31-Jul $45,000 31-Jul $13,000 23-Jul $675 23-Jul $2,400 Credit card expense Prepaid Rent 23-Jul $21,900 Date Debit Date Credit Date Debit Date Credit 31-Jul $472.50 23-Jul $675 3-Jul $9,000 31-Jul $1,500 31-Jul $1,360 31-Jul $50 31-Jul $675 31-Jul $12,692 31-Jul $7,500 Prepaid insurance Computer Equipment Delivery Van Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 3-Jul $3,600 31-Jul $400 3-Jul $2,700 5-Jul $25,000 31-Jul $3,200 31-Jul $2,700 321 july $25,000 Note payable-office Mart Note payable-Wells fargo Advertising Expense Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 31-Jul $450 3-Jul $2,700 5-Jul $18,000 6-Jul $1,200 23-Jul $625 31-Jul $275 31-Jul $2,250 31-Jul $18,000 31-Jul $2,100 Prepaid advertising Inventory Fruits Accounts payable Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 6-Jul $300 31-Jul $275 8-Jul $16,400 14-Jul $2,500 22-Jul $850 8-Jul $16,400 15-Jul $5,500 23-Jul $600 23-Jul $2,400 8-Jul $2,400 23-Jul $3,500 23-Jul $21,900 14-Jul $850 25-Jul $2,700 15-Jul $5,500 31-Jul $2,875 31-Jul $25 31-Jul $9,725 31-Jul $0 Inventory Baskets Legal expenses Supplies Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 8-Jul $2,400 14-Jul $250 13-Jul $2,000 14-Jul $850 31-Jul $835 23-Jul $25 23-Jul $350 25-Jul $300 31-Jul $280 31-Jul $1,195 31-Jul $2,000 31-Jul $15 Accounts Receivable Sales Cost of goods sold Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 14-Jul $4,000 23-Jul $4,000 14-Jul $4,000 14-Jul $2,750 23-Jul $9,500 23-Jul $3,850 25-Jul $3,000 25-Jul $3,000 31-Jul $4,140 31-Jul $3,095 31-Jul $0 31-Jul $20,640 31-Jul $12,695 Sales Tax Interest Expense Dividend Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 31-Jul $1,360 23-Jul $760 31-Jul $22.50 31-Jul $50.00 25-Jul $240 31-Jul $120 31-Jul $360 31-Jul $0 31-Jul $142.50 31-Jul $50 Supplies Expense Wage expense Wages payable Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 31-Jul $835.00 31-Jul $1,500.00 31-Jul $1,500 31-Jul $835 31-Jul $1,500 31-Jul $1,500 Depreciation expense Accum. Depreciation-Computer equip. Accum. Depreciation-Refrigerator Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 31-Jul $495.00 31-Jul $45 31-Jul $100 31-Jul $495 31-Jul $45 31-Jul $100 Accum. Depreciation-Delivery Van Insurance Expense Interest payable Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 31-Jul $350 31-Jul $400.00 31-Jul $120 31-Jul $350 31-Jul $400 31-Jul $120 Rent Expense Date Debit Date Credit 31-Jul $1,500.00 31-Jul $1,500
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