The Jones Telephone Company started a business on June 1, 2013 to answer after-h
ID: 2373413 • Letter: T
Question
The Jones Telephone Company started a business on June 1, 2013 to answer after-hours telephone calls of professionals, like lawyers, physicians, and accountants. The following transactions for the company occurred and adjustments were made during June:
Date
June 1 Jerry Jones started the business by investing $6,000 cash in the business
June 2 The company paid $1800 in advance for six months rent of office space
June 3 The company purchased telephone equipment costing $6,000, paying $1500 down and signing a note payable for the balance owed
June 6 Bought $750 of office supplies on credit, which is due in early July
June 15 Collected $900 from customers for services performed during the first half of the month
June 28 Jerry Jones withdrew $800 for personal use
June 29 The company received a bill for June utilities for $175, which is due in 30 days
June 30 The company paid $250 salary to a part time employee
June 30 The company billed customers $2,000 for services performed during the second half of the month
June 30 The following adjustments were required:
a. Rent expense for June
b. Depreciation expense of $100 on telephone equipment
c. Interest of $50 on the note payable
d. Office supplies on hand at the end of the month totaled $450
Required:
1. Record the journal entries, including adjusting entries, for June
2. Prepare an Income Statement for the month of June
3. Prepare a Balance Sheet for the company on June 30
Explanation / Answer
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