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provided, record the appropriate general journal entry for each transaction. Sep

ID: 2567584 • Letter: P

Question

provided, record the appropriate general journal entry for each transaction. September 1 Jackson Corporation issued 500 shares of capital stock for $20 per share. 10 do 2 Jackson Corporation borrowed $10,000 from the bank signing a 3-month to so 3 4 note at 12% annual interest. $6,000 of supplies were purchases on account. Office furniture was purchased for $10,000 cash. The furniture is expected 15 17 20 to have a 10-year life, with no residual value. Wages for the first half of September were paid in the amount of $2,000. The Company billed customers $1,500 for services performed. $3,000 was received for services to be provided in September and 23 27 30 October $5,000 was received for services performed in September The Company collected $1,000 on account. Dividends were declared and paid in the amount of $3,000 2. 3. 4. Post each of the journal entries to the appropriate ledger accounts. Prepare an unadjusted trial balance for September 30, 2017 Record in the general journal, adjusting entries needed at the end of September using the following additional information: $2,000 of supplies remain on hand. Fees earned but not yet billed total $3,000. By the end of September, the Company had performed 1/3 of the services related to the September 20 transaction. At the end of September, employees were owed $2,000 HINT: Adjusting entry required for activity related to the September 2 transaction. HINT: Adjusting entry required for activity related to the September 4 transaction. a) b) c) d) e) f)

Explanation / Answer

In the books of Jackson Corporation

For the month ending Sept 30, 2017

Journal Entries

30/09/2017

a) Supplies expense A/c (6000-2000) Dr. $4000

To Supplies A/c $4000

(Being supplies used for the month of Sept is shown)

b) Accounts receivable Dr. $3000

To Fees earned A/c $3000

(Fees earned but not yet billed, will be received later)

c) Unearned revenue A/c (3000*1/3) Dr. $1000

To Revenue $1000

(1/3 of the amount received in advance for work has completed)

d) Wages Expenses A/c Dr. $2000

To Outstanding Wages $2000

(Wages Due for the 2nd half of Sept.)

e) Interest A/c [(10000*12%)*1/12] Dr. $100

To Outstanding Interest $100

(Interest raised on notes payable)

Outstanding Interest Dr. $100

To Notes Payable $100

(Interest raised on notes, charged with the notes payable)

f) Depreciation on Office assets [(10000*1/10) *1/12] Dr. $83.33

To Office Assets $83.33

(Depreciation on office assets charged for the month of Sept)