1. Listed below are the transactions that occurred in September 2006. 9/1 The co
ID: 2477492 • Letter: 1
Question
1. Listed below are the transactions that occurred in September 2006.
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.
3. Prepare an unadjusted trial balance.
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)
6. Prepare an adjusted trial balance for Jackson Corporation.
Explanation / Answer
1
Unadjusted trial balance
Account Title
Debit
Credit
Cash (5000+10000-6000-2000+3000+5000+1000-1000)
$15,000
Supplies
$ 3,000
Accounts Receivables (1500-1000)
$ 500
Office furniture
$ 6,000
Capital stock (500 Shares * $10)
$ 5,000
Note Payable
$10,000
Accounts Payable
$ 3,000
Unearned Revenue
$ 3,000
Dividends
$ 1,000
Service Revenue (1500+5000)
$ 6,500
Wages Expense
$ 2,000
Total
$27,500
$27,500
2
Calculations for Adjusted trial balance
Unadjusted trial balance
Adjustments
Adjusted trial balance
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash (5000+10000-6000-2000+3000+5000+1000-1000)
$15,000
$ 15,000
Supplies
$ 3,000
1000
2000
Accounts Receivables (1500-1000)
$ 500
3000
$ 3,500
Office furniture
$ 6,000
$ 6,000
Accumulated Depreciation- Office furniture
600
600
Capital stock (500 Shares * $10)
$ 5,000
$ 5,000
Note Payable
$10,000
$ 10,000
Accounts Payable
$ 3,000
2100
$ 5,100
Unearned Revenue
$ 3,000
1000
$ 2,000
Dividends
$ 1,000
$ 1,000
Service Revenue (1500+5000)
$ 6,500
4000
$ 10,500
Interest Expense (10000*12%/12)
100
100
Supplies Expense
1000
$ 1,000
Depreciation Expense- Office furniture (6000/10)
600
$ 600
Wages Expense
$ 2,000
2000
$ 4,000
Total
$27,500
$27,500
$7,700
$ 7,700
$ 33,200
$ 33,200
1
Unadjusted trial balance
Account Title
Debit
Credit
Cash (5000+10000-6000-2000+3000+5000+1000-1000)
$15,000
Supplies
$ 3,000
Accounts Receivables (1500-1000)
$ 500
Office furniture
$ 6,000
Capital stock (500 Shares * $10)
$ 5,000
Note Payable
$10,000
Accounts Payable
$ 3,000
Unearned Revenue
$ 3,000
Dividends
$ 1,000
Service Revenue (1500+5000)
$ 6,500
Wages Expense
$ 2,000
Total
$27,500
$27,500
2
Calculations for Adjusted trial balance
Unadjusted trial balance
Adjustments
Adjusted trial balance
Account Title
Debit
Credit
Debit
Credit
Debit
Credit
Cash (5000+10000-6000-2000+3000+5000+1000-1000)
$15,000
$ 15,000
Supplies
$ 3,000
1000
2000
Accounts Receivables (1500-1000)
$ 500
3000
$ 3,500
Office furniture
$ 6,000
$ 6,000
Accumulated Depreciation- Office furniture
600
600
Capital stock (500 Shares * $10)
$ 5,000
$ 5,000
Note Payable
$10,000
$ 10,000
Accounts Payable
$ 3,000
2100
$ 5,100
Unearned Revenue
$ 3,000
1000
$ 2,000
Dividends
$ 1,000
$ 1,000
Service Revenue (1500+5000)
$ 6,500
4000
$ 10,500
Interest Expense (10000*12%/12)
100
100
Supplies Expense
1000
$ 1,000
Depreciation Expense- Office furniture (6000/10)
600
$ 600
Wages Expense
$ 2,000
2000
$ 4,000
Total
$27,500
$27,500
$7,700
$ 7,700
$ 33,200
$ 33,200
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