. 2018 Midterm In Progress Sa File Insert Page Layout Formulas Data Review View
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Question
. 2018 Midterm In Progress Sa File Insert Page Layout Formulas Data Review View Help Tell me what you want to do s Cut Copy Paste ,Format Painter 8 IU Clipboard Font Alignment Number L154 Robin opened her business, Jealous Scarf Fashion Design (JSFD) on Jan 1. Prepare the journal entries for the transactions that occurred in the month of January Important Notes about JSFD For tracking inventory, the company uses FIFO (you will have to keep track of inventory in order to properly journal the sale of goods) .SFD sells shirts for $32 and pants for $56 JSFD is a brand new company that has not previously operated . Based on industry data, SFD assumes that 2% of all sales will be returned ** Enter all accounts titles that will be Debited in column B and account titles to be credited in column C 3 1-Jan Robin contributed $20,000 cash and land valued at $55,000 to JSFD in exchange for common stock. 02 Journal Entries T-Accounts Adjusting Entries Adjusted Trial Balance Income Stmt 6 Ready Search the web and Windows o e aExplanation / Answer
Amount in $ Date Accounts Title & Explanation Debit Credit Jan-31 Advertising expense 800 Prepaid advertising 800 To record used advertising Jan-31 Salary (and wages) expense 2500 Salary (and wages) Payable 2500 To record unpaid wages Jan-31 Utilities expense 620 Utilities Payable 620 To record unpaid utilities Jan-31 Supplies expense 1900 Office supplies 1900 To record used office supplies Jan-31 Depreciation expense-Building 208 Accumulated depreciation on building 208 To record depreication on Building Jan-31 Depreciation expense-Equipment 117 Accumulated depreciation on Equipment 117 To record depreication on equipment Jan-31 Rent expense 2500 Prepaid rent 2500 To record the rent expense Note : you have passed incorrect entry in prepaid rent which should have as follows After below entry, above adjusting entry will be needed. Jan-02 Prepaid rent 15000 Cash 15000 You have also passed Sales Journal entry Incorrectly. The cost of goods sold and Merchandise Inventory should be passed on purchase price on FIFO basis You need to correct these entries and at the end pass the adjusting entry by adjusting the value of Ending Inventory.(Difference between Inventory arrived at FIFO method and Inventory value given in the adjusting entry should be charged to cost of goods sold with corresponding credit Merchandise Inventory.
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