1. Listed below are the transactions that occurred in September 2006. 9/1 The co
ID: 2477489 • 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 $1,500 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.
2. Post each of the journal entires to the appropriate ledger (T) accounts.
4. Record in general journal form any adjusting entries needed at the end of September and post the entries to the ledger. 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)
5. Post adjusting journal entries to the ledger accounts.
Use the appropriate following accounts to record the journal entries:
Cash
Accounts Receivable
Supplies
Office Furniture
Accumulated Depreciation-Office Furniture
Notes Payable
Accounts Payable
Unearned Revenue
Wages Payable
Interest Payable
Dividends
Capital Stock
Retained Earnings
Revenue
Wages Expense
Supplies Expense
Depreciation Expense – Office Furniture
Interest Expense
Explanation / Answer
09/01
Cash Dr 5,000
Capital Stock Cr 5,000
09/02
Cash Dr 10,000
Notes Payable Cr 10,000
09/03
Supplies Dr 3,000
Accounts Payable Cr 3,000
09/04
Office Furniture Dr 6,000
Cash Cr 6,000
09/15
Wages Expense Dr 2,000
Cash Cr 2,000
09/17
Accounts Receivable Dr 1,500
Revenue Cr 1,500
09/20
Cash Dr 3,000
Unearned Revenue Cr 3,000
09/23
Cash Dr 5,000
Revenue Cr 5,000
09/27
Cash Dr 1,000
Accounts Receivable Cr 1,000
09/30
Dividends Dr 1,000
Cash Cr 1,000
K.
Supplies Expense Dr 2,000
Supplies Cr 2,000
l.
Unearned revenue Dr 3,000
Revenue Cr 3,000
m
Unearned revenue Dr 1,000
Revenue Cr 1,000
n
Wages expenses Dr 2,000
Wages Payable Cr 2,000
o
Interest Dr $ 100 ( 10,000 X 12% X 1 /12)
Interest Payable Cr $ 100
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