1. Listed below are the transactions that occurred in September 2006. Prepare th
ID: 2475748 • Letter: 1
Question
1. Listed below are the transactions that occurred in September 2006. Prepare the appropriate general journal entry for each transaction.
9/1 The company issued 500 shares of capital stock at $10 per share.
9/2 Jackson Corporation borrowed $10,000 from the bank signing a 3-month note at 12% annual interest.
9/3 $3,000 supplies were purchased on account.
9/4 Office furniture was purchased for $6,000 cash. The furniture is expected to have a ten-year life, with no residual value.
9/15 Wages for the first half of September were paid, $2,000.
9/17 The company billed customers $1,500 for services performed.
9/20 $3,000 was received for services to be provided in September and October.
9/23 $5,000 cash was received for services performed in September.
9/27 The company collected $1,000 on account.
9/30 Declared and paid dividends, $1,000.
2. Post each of the journal entires to the appropriate ledger (T) accounts.
3. Prepare an unadjusted trial balance.
4. Record in general journal form any adjusting entries needed at the end of September and post the entries to the ledger. Additional information available at the end of SEptember includes:
k. $2,000 of supplies remains on hand.
l. Fees earned but not yet billed total $3,000.
m. By the end of September, the company had performed one-third of the services related to the 9/20 transaction.
n. At the end of September, employees were owed $2,000.
o. Hint: There are two more adjusting entries required ( 9/2 and 9/4)
5. Post adjusting journal entries to the ledger accounts.
6. Prepare an adjusted trial balance for Jackson Corporation.
7. Prepare financial statements (Income Statement, Statement of Retained Earnings, and Balance Sheet) for Jackson Corporation.
8. Prepare closing entries for Jackson Corp. Post the closing entries to the ledger accounts.
9. Prepare an after-closing trial balance for Jackson Corporation.
Please Show all work, entries etc.
Descriptions are not required for entries in journal form.
Explanation / Answer
Date Accounts title Dr Cr 1-Sep Cash (500*10) $5,000 Capital stock $5,000 2-Sep Cash 10000 Notes Payable 10000 3-Sep Supplies 3000 Accounts payable 3000 4-Sep Furniture 6000 Cash 6000 15-Sep Salaries &Wages Expenses 2000 Cash 2000 17-Sep Accounts receivable 1500 Service Revenue 1500 20-Sep Cash 3000 Unearned Revenue 3000 23-Sep Cash 5000 Service Revenue 5000 27-Sep Cash 1000 Accounts Receivable 1000 27-Sep Retained earnings 1000 Dividend Payable 1000 Dividend Payable 1000 Cash 1000 Adjusting enrties Supplies expenses 1000 Supplies (3000-2000) 1000 Accounts Receivable 3000 service Revenue 3000 Uneraned Revenue 1000 Service Revenue (3000*1/3) 1000 Salaries & wages expenses 2000 Salaries & wages Payable 2000 Depreciation expenses (6000/10*1/12) 50 AccumulatedDepreciation-Furniture 50 Interest expenses (10000*12%*1/12) 100 Interest Payable 100 Trial balance Dr Cr Adjustment entry Adjusted Trial Balance Calcuation Dr Cr Dr Cr Cash 15000 15000 5000+10000-6000-2000+3000+5000+1000-1000 Accounts Receivable 500 3000 3500 Supplies 3000 1000 2000 Furniture 6000 6000 Accumulated Depreciation-Furniture 100 100 Accounts Payable 3000 3000 Salaries &Wages Payable 2000 2000 Interest Payable 50 50 Unearned Revenue 3000 1000 2000 Note Payable 10000 10000 Capital stock 5000 5000 Retained earnings 0 Dividend 1000 1000 Service Revenue 6500 4000 10500 1500+5000+4000 Salaries &Wages Expenses 2000 2000 4000 Supplies Expenses 1000 1000 Interest Expenses 50 50 Depreciation expenses 100 100 Total 27500 27500 7150 7150 32650 32650 Income statemnt For the month ending September 30 Amount Amount Service Revenue 10500 Less: expenses Salaries &Wages Expenses 4000 Supplies Expenses 1000 Interest Expenses 50 Depreciation expenses 100 5150 Net Income 5350 Statement Of Retained earnings as on 31 September 2006 Add: Net Income (Income Summary) 5350 Less: Dividend 1000 Statement Of Retained earnings as on 31 September 2006 4350 Balance Sheet As on May 31 Assets Amount Amount Current assets Cash 15000 Accounts Receivable 3500 Supplies 2000 Total Current assets 20500 Furniture 6000 Accumulated Depreciation-Equiment 100 Total Fixed assets 5900 Total assets 26400 Liabilities Accounts Payable 3000 Salaries &Wages Payable 2000 Interest Payable 50 Unearned Revenue 2000 Note Payable 10000 Total Current Liabilities 17050 Stock Holder equity Capital stock 5000 Reatined earnings 4350 Total stockholder equity 9350 Total Liabilities and Owners equity 26400 Closing entries Accounts Title Dr Cr Service Revenue 10500 Income Summary 10500 Income Summary 5150 Salaries &Wages Expenses 4000 Supplies Expenses 1000 Interest Expenses 50 Depreciation expenses 100 Income Summary 5350 Retained earnings 5350 Retained earnings 1000 Dividend 1000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.