Consumer Research Associates, owned by Gloria Johnson, is retained by large comp
ID: 2535864 • Letter: C
Question
Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm's worksheet showed the following adjustments data: (a) supplies used $2,220; (b) expired rent, $11,800; and (c) depreciation on office equipment, $4,460. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below: REVENUE AND EXPENSE ACCOUNTS 401 Fees Income 511 Depr. Expense-Office Equipment 514 Rent Expense 517 520 Supplies Expense 523 Tel 526 Travel Expense 529 Utilities Expense $102,000 Cr. 4,460 Dr. 11,800 Dr. 48,300 Dr. 2,220 Dr 1,230 Dr. 10,270 Dr 1,130 Dr Expense DRAWING ACCOUNT 302 Gloria Johnson, Drawing 9,800 Dr Required 1. Record the adjusting entries in the general journal (transactions 1-3). 2. Record the closing entries in the general journal (transactions 4-7)Explanation / Answer
Answers
Date
Accounts Title
Debit
Credit
31-Jan-19
Supplies expense
$ 2,220.00
Supplies
$ 2,220.00
(to record supplies expense)
31-Jan-19
Rent expense
$ 11,800.00
Prepaid Rent
$ 11,800.00
(to record expired rent)
31-Jan-19
Depr Expenese - Office equipment
$ 4,460.00
Accumulated Dep-Equipemnt
$ 4,460.00
(to record depreciation)
Date
Accounts Title
Debit
Credit
31-Jan-19
Fees Income
$ 1,02,000.00
Income Summary
$ 1,02,000.00
(to close revenue account)
31-Jan-19
Income Summary
$ 79,410.00
Depr Expenese - Office equipment
$ 4,460.00
Rent expense
$ 11,800.00
Salaries expense
$ 48,300.00
Supplies expense
$ 2,220.00
Telephone expense
$ 1,230.00
Travel expense
$ 10,270.00
Utilities exp
$ 1,130.00
(to close expense account)
31-Jan-19
Income Summary (102000-79410)
$ 22,590.00
Capital a/c (or retained earnings)
$ 22,590.00
(to close income summary balance)
31-Jan-19
Capital a/c
$ 9,800.00
Drawings
$ 9,800.00
(to close withdrawls and drawings)
Date
Accounts Title
Debit
Credit
31-Jan-19
Supplies expense
$ 2,220.00
Supplies
$ 2,220.00
(to record supplies expense)
31-Jan-19
Rent expense
$ 11,800.00
Prepaid Rent
$ 11,800.00
(to record expired rent)
31-Jan-19
Depr Expenese - Office equipment
$ 4,460.00
Accumulated Dep-Equipemnt
$ 4,460.00
(to record depreciation)
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