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Journal entries Adjusting Journal entries for the month of July Date Account tit

ID: 2436296 • Letter: J

Question

Journal entries


Adjusting Journal entries for the month of July

Date

Account titles

Debit

Credit

31-Jul

Supplies expense

$835

Supplies

$835

(To record supplies expense for july)

(850-15 = 835)

31-Jul

Wages Expense

$1,500

Wages payable

$1,500

(wages accrued for part time help from Temp services Inc.)

31-Jul

Depreciation expense

$495

Accumulated Depreciation-Computer Equip.

$45

Accumulated Depreciation-Refrigerator

$100

Accumulated Depreciation-Delivery Van

$350

(To record one month depreciation)

Depreciation on straight line method

Computer equipment

Cost

2700

useful life

5

Depreciation per year (2700/5)

540

Depreciation per month (540/12)

45

Refrigerator

Cost

13000

Salvage value

1000

useful life

10

Depreciation per year (12000/10)

1200

Depreciation per month (1200/12)

100

Delivery Van

Cost

25000

Salvage value

4000

useful life

5

Depreciation per year (21000/5)

4200

Depreciation per month (4200/12)

350

31-Jul

Insurance Expense

$400

Prepaid Insurance

$400

(To record one month insurance expense)

Insurance Expense = $3600/9 = $400 per month

31-Jul

Interest Expense

$120

Interest Payable

$120

(To record interest expense for one month on note payable for the Wells Fargo Bank)

Interest Expense = $18000x8%x1/12=$120

31-Jul

Rent Expense

$1,500

Prepaid Rent

$1,500

(To record rent expense for one month)

Rent Expense = $9000/6 = $1500 per month

31-Jul

Advertising Expense

$275

Prepaid Advertising

$275


Adjusting Journal entries for the month of July

Date

Account titles

Debit

Credit

31-Jul

Supplies expense

$835

Supplies

$835

(To record supplies expense for july)

(850-15 = 835)

31-Jul

Wages Expense

$1,500

Wages payable

$1,500

(wages accrued for part time help from Temp services Inc.)

31-Jul

Depreciation expense

$495

Accumulated Depreciation-Computer Equip.

$45

Accumulated Depreciation-Refrigerator

$100

Accumulated Depreciation-Delivery Van

$350

(To record one month depreciation)

Depreciation on straight line method

Computer equipment

Cost

2700

useful life

5

Depreciation per year (2700/5)

540

Depreciation per month (540/12)

45

Refrigerator

Cost

13000

Salvage value

1000

useful life

10

Depreciation per year (12000/10)

1200

Depreciation per month (1200/12)

100

Delivery Van

Cost

25000

Salvage value

4000

useful life

5

Depreciation per year (21000/5)

4200

Depreciation per month (4200/12)

350

31-Jul

Insurance Expense

$400

Prepaid Insurance

$400

(To record one month insurance expense)

Insurance Expense = $3600/9 = $400 per month

31-Jul

Interest Expense

$120

Interest Payable

$120

(To record interest expense for one month on note payable for the Wells Fargo Bank)

Interest Expense = $18000x8%x1/12=$120

31-Jul

Rent Expense

$1,500

Prepaid Rent

$1,500

(To record rent expense for one month)

Rent Expense = $9000/6 = $1500 per month

31-Jul

Advertising Expense

$275

Prepaid Advertising

$275

Depretldiu d. One month of theprepaid insunce has expired. e. Accrue one month o trest expense on the note for the Wells Fargo Bank note. f. One month of the pepad rent has expired. g. $25 of prenaie advertising mains on hand h. The-mentand interest on th omputer was done in transaction #27. Part Three Requirements Make a spreadsheet in Excel for each T-account in the Chart of Accounts. As you write each journal and adjusting journal entry make sure that you enter it into the T-Account. After all entries have been made calculate the ending balance in each account. Once all balances are prepared then enter the balances of each account into Blackboard by first entering Dr or Cr then the dollar amount. See the following example. Dr $1,000.00 or Cr $%1,000.00 if no balance write Dr $0.00 or Cr $0.00 Part Four Requirements Correct Errors Correct any errors that you made on the journal entries and T I, Il and II. Both the debits and ime credits should equal each other Bank Reconciliation: Us the cash balance per books (see the amount on Part IlIl of the T- ccounts) and the hank state ment ending balance, prepare a bank reconciliation. This should be prepared using Excel and must contain the proper heading as well as the reconciliation information. Note: Assume that any errors are mede by the bank. nciliation Adiustments: Aft have prepared the bank reconciliation you

Explanation / Answer

Part Three Requirement T-accounts 10000 Cash Common Stock Refrigerator Equipment Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 2-Jul $45,000 3-Jul $3,600 2-Jul $45,000 5-Jul $13,000 5-Jul $18,000 5-Jul $13,000 23-Jul $4,000 5-Jul $25,000 23-Jul $10,760 6-Jul $1,200 25-Jul $3,240 6-Jul $300 31-Jul $4,500 13-Jul $2,000 22-Jul $850 31-Jul $45,000 31-Jul $13,000 23-Jul $675 23-Jul $2,400 Credit card expense Prepaid Rent 23-Jul $21,900 Date Debit Date Credit Date Debit Date Credit 31-Jul $472.50 23-Jul $675 3-Jul $9,000 31-Jul $1,500 31-Jul $1,360 31-Jul $50 31-Jul $675 31-Jul $12,692 31-Jul $7,500 Prepaid insurance Computer Equipment Delivery Van Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 3-Jul $3,600 31-Jul $400 3-Jul $2,700 5-Jul $25,000 31-Jul $3,200 31-Jul $2,700 321 july $25,000 Note payable-office Mart Note payable-Wells fargo Advertising Expense Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 31-Jul $450 3-Jul $2,700 5-Jul $18,000 6-Jul $1,200 23-Jul $625 31-Jul $275 31-Jul $2,250 31-Jul $18,000 31-Jul $2,100 Prepaid advertising Inventory Fruits Accounts payable Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 6-Jul $300 31-Jul $275 8-Jul $16,400 14-Jul $2,500 22-Jul $850 8-Jul $16,400 15-Jul $5,500 23-Jul $600 23-Jul $2,400 8-Jul $2,400 23-Jul $3,500 23-Jul $21,900 14-Jul $850 25-Jul $2,700 15-Jul $5,500 31-Jul $2,875 31-Jul $25 31-Jul $9,725 31-Jul $0 Inventory Baskets Legal expenses Supplies Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 8-Jul $2,400 14-Jul $250 13-Jul $2,000 14-Jul $850 31-Jul $835 23-Jul $25 23-Jul $350 25-Jul $300 31-Jul $280 31-Jul $1,195 31-Jul $2,000 31-Jul $15 Accounts Receivable Sales Cost of goods sold Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 14-Jul $4,000 23-Jul $4,000 14-Jul $4,000 14-Jul $2,750 23-Jul $9,500 23-Jul $3,850 25-Jul $3,000 25-Jul $3,000 31-Jul $4,140 31-Jul $3,095 31-Jul $0 31-Jul $20,640 31-Jul $12,695 Sales Tax Interest Expense Dividend Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 31-Jul $1,360 23-Jul $760 31-Jul $22.50 31-Jul $50.00 25-Jul $240 31-Jul $120 31-Jul $360 31-Jul $0 31-Jul $142.50 31-Jul $50 Supplies Expense Wage expense Wages payable Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 31-Jul $835.00 31-Jul $1,500.00 31-Jul $1,500 31-Jul $835 31-Jul $1,500 31-Jul $1,500 Depreciation expense Accum. Depreciation-Computer equip. Accum. Depreciation-Refrigerator Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 31-Jul $495.00 31-Jul $45 31-Jul $100 31-Jul $495 31-Jul $45 31-Jul $100 Accum. Depreciation-Delivery Van Insurance Expense Interest payable Date Debit Date Credit Date Debit Date Credit Date Debit Date Credit 31-Jul $350 31-Jul $400.00 31-Jul $120 31-Jul $350 31-Jul $400 31-Jul $120 Rent Expense Date Debit Date Credit 31-Jul $1,500.00 31-Jul $1,500