1. Listed below are the transactions that occurred in September 2006. 9/1 The co
ID: 2477242 • Letter: 1
Question
1. Listed below are the transactions that occurred in September 2006.
9/1 The company issued 500 shares of capital stock at $10 per share.
9/2 Jackson Corporation borrowed $10,000 from the bank signing a 3-month note at 12% annual interest.
9/3 $3,000 supplies were purchased on account.
9/4 Office furniture was purchased for $6,000 cash. The furniture is expected to have a ten-year life, with no residual value.
9/15 Wages for the first half of September were paid, $2,000.
9/17 The company billed customers $15,000 for services performed.
9/20 $3,000 was received for services to be provided in September and October.
9/23 $5,000 cash was received for services performed in September.
9/27 The company collected $1,000 on account.
9/30 Declared and paid dividends, $1,000.
3. Prepare an unadjusted trial balance.
Additional information available at the end of SEptember includes:
k. $2,000 of supplies remains on hand.
l. Fees earned but not yet billed total $3,000.
m. By the end of September, the company had performed one-third of the services related to the 9/20 transaction.
n. At the end of September, employees were owed $2,000.
o. Hint: There are two more adjusting entries required ( 9/2 and 9/4)
6. Prepare an adjusted trial balance for Jackson Corporation.
Explanation / Answer
Adjusted trial balance for Jackson Corporation DR CR Cash 14000 Common Stock 5000 12% Note Payable 10000 Interest payable on Note 100 supplies 2000 Account payable 3000 Office furniture 6000 wages 4000 Account Receivable 13000 Dividend 1000 supplies expense 1000 Service Revenue 19000 Unearned Revenue 2000 Accumulated depreciation office furniture 50 Depreciation 50 Interest 100 Wages payable 2000 41150 41150 DR CR 09-Jan Cash 5000 Common Stock 5000 01-Sep Cash 10000 12% Note Payable 10000 03-Sep supplies 3000 Account payable 3000 04-Sep Office furniture 6000 Cash 6000 Sep-15 wages 2000 Cash 2000 Sep-17 Account Receivable 15000 Service Revenue 15000 Sep-23 Cash 3000 Unearned Revenue 3000 Sep-27 Cash 5000 Account Receivable 5000 Retained earnings 1000 Dividend 1000 Sep-30 Dividend 1000 Cash 1000 Sep-30 supplies expense 3000-2000 1000 Supplies 1000 Sep-30 Account Receivable 3000 Service Revenue 3000 Sep-30 Unearned Revenue 3000*1/3 1000 Service Revenue 1000 Sep-30 wages 2000 Wages payable 2000 Sep-30 Interests expense 10000*.12/.12*1 100 Interest payable on Note 100 Depreciation 6000/10 *1/12 50 Accumulated depreciation office furniture 50
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