1. Listed below are the transactions that occurred in September 2006. 9/1 The co
ID: 2481259 • 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.
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)
8. Prepare closing entries for Jackson Corp. Post the closing entries to the ledger accounts.
9. Prepare an after-closing trial balance for Jackson Corporation.
Explanation / Answer
Note - for remaining part of the question, please put a new question.
JOURNAL Date Debit Credit Sept. 01 Cash $5,000 Common Stock $5,000 Sept. 02 Cash $10,000 Note Payable $10,000 Sept. 03 Supplies $3,000 Accounts Payable $3,000 Sept. 04 Office Furniture $6,000 Cash $6,000 Sept. 15 Wages Expense $2,000 Cash $2,000 Sept. 17 Accounts Receivable $1,500 Service revenue $1,500 Sept. 20 Cash $3,000 Unearned service revenue $3,000 Sept. 23 Cash $5,000 Service revenue $5,000 Sept. 27 Cash $1,000 Accounts receivable $1,000 Sept. 30 Dividends $1,000 Cash $1,000 ADJUSTING JOURNAL ENTRIES Date Debit Credit Sept. 30 Supplies expenses $1,000 Supplies $1,000 Sept. 30 Accounts Receivable $3,000 Service revenue $3,000 Sept. 30 Unearned service revenue $1,000 Service revenue $1,000 Sept. 30 Wages Expense $2,000 Wages Payable $2,000 Sept. 30 Interest Expense $100 Interest Payable $100 Sept. 30 Depreciation Expense $50 Accumulared Depericiation $50Related Questions
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