At June 30, 2017, the end of its most recent fiscal year, Flounder Computer Cons
ID: 2554415 • Letter: A
Question
At June 30, 2017, the end of its most recent fiscal year, Flounder Computer Consultants’ post-closing trial balance was as follows:
The company underwent a major expansion in July. New staff was hired and more financing was obtained. Flounder conducted the following transactions during July 2017, and adjusts its accounts monthly.
Adjustment data:
The chart of accounts for Flounder Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated Depreciation—Equipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, Supplies Expense, and Utilities Expense.
Please journalize the july transactions
Debit Credit Cash $4,390 Accounts receivable 1,010 Supplies 580 Accounts payable $340 Unearned service revenue 940 Common stock 3,000 Retained earnings 1,700 $5,980 $5,980Explanation / Answer
Flounder Computer Consultant’s
General Journal
Date
Account Titles and explanation
Debit
Credit
July 1
Equipment
20,400
Cash
3,600
Notes payable
16,800
(to record purchase of equipmnet by cash and by issuing notes payable)
July 2
Cash
42,000
Common Stock
42,000
(to record issue of common stock)
July 3
Prepaid Insurance
3,000
Cash
3,000
(to record payment made for insurance)
July 3
Prepaid Rent (3,400 * 2)
6,800
Cash
6,800
(to record payment of rent)
July 6
Supplies
3,200
Cash
3,200
(to record purchase of supplies)
July 9
No Entry Required
July 10
Cash
1,010
Accounts receivable
1,010
(to record receipt of cash from Milani Brothers)
July 13
Unearned service revenue
940
Service revenue
940
(to record service performed for which payment already received in last month )
July 14
Accounts payable
340
Cash
340
(to record payment made for last month utility bill)
July 16
Cash
10,100
Unearned Service revenue
10,100
(to record receipt of cash for future services)
July 18
Salaries and wages expense
9,200
Cash
9,200
(to record payment of salaries and wages expense)
July 20
Accounts receivable
23,500
Service revenue
23,500
(to record service performed on account)
July 20
Advertising Expense
1,800
Accounts payable
1,800
(to record bill received for advertising expense)
July 23
Unearned Service revenue
8,400
Service revenue
8,400
(to record service performed for which payment recevied in advance)
July 27
Accounts receivable
12,600
Cash
12,600
(to record payment received from customer)
Adjustment
1
Insurance expense
250
Prepaid Insurance
250
(to record insurance expense for the month) (3,000/12)
2
Rent Expense
3,400
Prepaid rent
3,400
(to record rent expenses for the month)
3
Supplies expense
1,080
Supplies
1,080
(to record supplies used during the month)
4.
Depreciation expense
425
Accumulated depreciation – equipment
425
(to record depreciation expense)
5.
Interest expense
84
Interest payable
84
(to record interest expenses on notes issued during the month) (16,800 * 6% *1/12)
6.
Salaries and wages expense
9,200
Salaries and wages payable
9,200
(to record salary and wages due for the 2nd half)
7.
Utilities expense
670
Accounts payable
670
(to record utilites expense on account)
8.
Income tax expense
1,010
Income taxes payable
1,010
(to record the income tax liability for the month)
Notes: Apart from above there will be closing entries
1
Service revenue
32,840
Income summary
32,840
(to transfer the service revenue balance to income summary)
2
Income summary
26,694
Salaries and wages expense
18,400
Advertising expense
1,800
Rent expense
3,400
Insurance expense
250
Utilities expense
670
Supplies expense
1,080
Income tax expense
1,010
Interest expense
84
(to record closing of all expenses account by transferring to income summary)
3
Income summary
6,146
Retained Earnings
6,146
(to record tranfer of net income to retained earnings) (32,840 – 26,694)
Date
Account Titles and explanation
Debit
Credit
July 1
Equipment
20,400
Cash
3,600
Notes payable
16,800
(to record purchase of equipmnet by cash and by issuing notes payable)
July 2
Cash
42,000
Common Stock
42,000
(to record issue of common stock)
July 3
Prepaid Insurance
3,000
Cash
3,000
(to record payment made for insurance)
July 3
Prepaid Rent (3,400 * 2)
6,800
Cash
6,800
(to record payment of rent)
July 6
Supplies
3,200
Cash
3,200
(to record purchase of supplies)
July 9
No Entry Required
July 10
Cash
1,010
Accounts receivable
1,010
(to record receipt of cash from Milani Brothers)
July 13
Unearned service revenue
940
Service revenue
940
(to record service performed for which payment already received in last month )
July 14
Accounts payable
340
Cash
340
(to record payment made for last month utility bill)
July 16
Cash
10,100
Unearned Service revenue
10,100
(to record receipt of cash for future services)
July 18
Salaries and wages expense
9,200
Cash
9,200
(to record payment of salaries and wages expense)
July 20
Accounts receivable
23,500
Service revenue
23,500
(to record service performed on account)
July 20
Advertising Expense
1,800
Accounts payable
1,800
(to record bill received for advertising expense)
July 23
Unearned Service revenue
8,400
Service revenue
8,400
(to record service performed for which payment recevied in advance)
July 27
Accounts receivable
12,600
Cash
12,600
(to record payment received from customer)
Adjustment
1
Insurance expense
250
Prepaid Insurance
250
(to record insurance expense for the month) (3,000/12)
2
Rent Expense
3,400
Prepaid rent
3,400
(to record rent expenses for the month)
3
Supplies expense
1,080
Supplies
1,080
(to record supplies used during the month)
4.
Depreciation expense
425
Accumulated depreciation – equipment
425
(to record depreciation expense)
5.
Interest expense
84
Interest payable
84
(to record interest expenses on notes issued during the month) (16,800 * 6% *1/12)
6.
Salaries and wages expense
9,200
Salaries and wages payable
9,200
(to record salary and wages due for the 2nd half)
7.
Utilities expense
670
Accounts payable
670
(to record utilites expense on account)
8.
Income tax expense
1,010
Income taxes payable
1,010
(to record the income tax liability for the month)
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