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is Help Insert Page L, out Fomulss Cets Re i File Home Cul Accounting Cahbi copy Paste Number Font Chpboard u 53 Robin opened her business, Jealous Scarf Fashion Design (USFD) on Jan 1 Prepare the journal entries for the transactions that occurred in the month of January Important Notes about JSFD .1 or tracking inventory, the company uses FIF O (you will have to keep track of inventory in order to properly journal the sale of goods) JSFD sells shirts for $32 and pants for $56 JSFD is a brand new company that has not previously operated ·Based on industry data, JSFD assumes that 2% of all sales will be returned 3 **Enter all accounts titles that will be Debited in column B and account titles to be credited in column C Robin contributed $20,000 cash and land valued at $55,000 to JSFD in exchange for common stock. 1-Jan Journal Entries T-Accounts Adjusting Entries Adjusted Trial BalanceIncome Stmt dy Search the web and Windows

Explanation / Answer

Date

Accounts Title & Explanation

Debit

Credit

31-Jan.

Advertising expense ($2400 * 2 / 6)

$800

     Prepaid Advertising

$800

(For recording used advertisement)

31-Jan.

Salaries and (Wages) Expense

$2500

     Salaries and (Wages) Payable

$2500

(For recording unpaid wages)

31-Jan

Utilities Expense

$620

     Utilities Payable

$620

(For recording accumulated utilities not paid)

31-Jan

Supplies Expense ($2500 - $600)

$1900

     Supplies

$1900

(Adjusting entry for supply on hand)

31-Jan.

Depreciation Expense-Building

$208.33

     Accumulated Depreciation-Building

$208.33

(For recording depreciation on building)

31-Jan.

Depreciation Expense-Equipment

$116.67

     Accumulated Depreciation-Equipment

$116.67

(For recording depreciation on equipment)

31-Jan.

Loss on LCM Adjustment

$190

     Mercandise Inventory

$190

(For recording mercandise inventory on LCM)

31-Jan.

Sales Returns

$364

     Accounts Receivable

$364

(Adjusting entry for sales returns ($48200 * .02) - $600

31-Jan.

Prepaid Rent

$250

     Rent Expense

$250

(For adjusting 1 month rent) ($1500 / 6)

Working Note;

1. Depreciation on Building is calculated as follow;

($60000 - $10000) / 20 = $2500 / 12 = $208.33

2. Depreciation on Equipment is calculated as follow;

($15000 - $1000) / 10 = $1400 / 12 = $116.67

Date

Accounts Title & Explanation

Debit

Credit

31-Jan.

Advertising expense ($2400 * 2 / 6)

$800

     Prepaid Advertising

$800

(For recording used advertisement)

31-Jan.

Salaries and (Wages) Expense

$2500

     Salaries and (Wages) Payable

$2500

(For recording unpaid wages)

31-Jan

Utilities Expense

$620

     Utilities Payable

$620

(For recording accumulated utilities not paid)

31-Jan

Supplies Expense ($2500 - $600)

$1900

     Supplies

$1900

(Adjusting entry for supply on hand)

31-Jan.

Depreciation Expense-Building

$208.33

     Accumulated Depreciation-Building

$208.33

(For recording depreciation on building)

31-Jan.

Depreciation Expense-Equipment

$116.67

     Accumulated Depreciation-Equipment

$116.67

(For recording depreciation on equipment)

31-Jan.

Loss on LCM Adjustment

$190

     Mercandise Inventory

$190

(For recording mercandise inventory on LCM)

31-Jan.

Sales Returns

$364

     Accounts Receivable

$364

(Adjusting entry for sales returns ($48200 * .02) - $600

31-Jan.

Prepaid Rent

$250

     Rent Expense

$250

(For adjusting 1 month rent) ($1500 / 6)

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