ro he (Your Name) Company is a corpration. The business is a consulting business

Question

ro he (Your Name) Company is a corpration. The business is a consulting business. prepares financial statements monthly. A cha 2017 is also included in this packet. The bus The business uses the accrual basis of accounting. The business in this packet. A trial balance for the business on September 30 rt of accounts for the business is in on October 2 the businesspaid $900 for a newspaper advertisament On October 4 the business collected $11,500 from clients as advance payments for services to be provided. Record the receipt in the unearned ess entered into the following transactions during october of 2017 1. 2 fees account. On October 10 the business paid a $12,000, dividend. 3 4. On October 11 the business purchased supplies on account for $7,000. 5. Record the purchase in the supplies account. On Oetober 12 the business paid salaries for the two-week period ending October 12 in the amount of $15,400 6. On Oetober 14 the business collected $13,500 from clients for services 7. On Oetober 16 the business paid the utility bill for September in the 8. On October 22 the business collected $17,500 from clients for services 9. On October 26 the business paid salaries for the two-week period ending provided that were previously billed. amount of $1,300 provided that were not previously billed October 26 in the amount of $15,400 10. On October 28 the business paid $8,500 on account. 11. On October 31 the business received the utility bill for October in the 12. On october 31 the business billed clients for services provided on account The following information is available for the month-end adjusting entries amount of $1,200. in the amount of $29,000. 1. Supplies on hand on October 31 were $1,250 2. The prepa 3. 4. Depreciation on the equipment for October is $1,200. id rent represents payment of 4-month's rent at $4,500 per month on September 1, 2016. The prepaid insurance represents a 2-year insurance policy purchased on August 1, 2015 for $7,200 5) Accrued salaries on October 31 were $5,500. Unearned fees on October 31 wera $3,900 Required 1. Set up the Company 2. Enter the chart of accounts 3. Enter the beginning balances in the trial balance on September 30, 2017 this in 4. Print a copy of the trial balance on September 30, 2017. Hand Salant expense >Deb Sala able Credut

Explanation / Answer

Journal Entry in the Books of Krol Company

Date

Name of Account & Description

Debit

Credit

Oct-02

Advertisement Expenses

900

Cash

900

(Cashpaid for advertisement)

Oct-04

Cash

11500

Unearned Fees Account

11500

(To advance against services)

Oct-10

Dividend

12000

Cash

12000

(To dividend paid)

Oct-10

Retained Earnings

12000

Dividend

12000

(To Dividend charged to retained earnings)

Oct-11

Supplies

7000

Accounts Payable

7000

(To supplies purchased on account)

Oct-12

Salary Expenses

15400

Cash

15400

(To salary for two weeks paid)

Oct-14

Cash

13500

Accounts Receivables

13500

(Payment from clients)

Oct-16

Utility Expenses

1300

Cash

1300

(To expenses paid)

Oct-22

Cash

17500

Service Revenue

17500

(To collection for services)

Oct-26

Salary Expenses

15400

Cash

15400

(To salary expenses paid)

Oct-28

Accounts Payable

8500

Cash

8500

(To paid on account)

Oct-31

Utility Expenses

1200

Utility Expenses Payable

1200

(To expenses booked)

Oct-31

Accounts Receivables

29000

Service revenue

29000

(To clients billed for services)

Oct-31

Supply Expenses

7350

Supplies

7350

(To supply expenses recorded)

Oct-31

Rent Expenses

4500

Prepaid Rent

4500

(Rent expenses recorded for the month)

Oct-31

Insurance Expenses

300

Prepaid Insurance

300

(To expenses recorded 7200*1/24)

Oct-31

Depreciation Expenses

1200

Accumulated Depreciation

1200

(To expenses recorded)

Oct-31

Salary Expenses

5500

Salaries Payable

5500

(To expenses recorded)

Oct-31

Unearned Fee

11300

Service revenue

11300

(To Service revenue recorded)

Journal Entry in the Books of Krol Company

Date

Name of Account & Description

Debit

Credit

Oct-02

Advertisement Expenses

900

Cash

900

(Cashpaid for advertisement)

Oct-04

Cash

11500

Unearned Fees Account

11500

(To advance against services)

Oct-10

Dividend

12000

Cash

12000

(To dividend paid)

Oct-10

Retained Earnings

12000

Dividend

12000

(To Dividend charged to retained earnings)

Oct-11

Supplies

7000

Accounts Payable

7000

(To supplies purchased on account)

Oct-12

Salary Expenses

15400

Cash

15400

(To salary for two weeks paid)

Oct-14

Cash

13500

Accounts Receivables

13500

(Payment from clients)

Oct-16

Utility Expenses

1300

Cash

1300

(To expenses paid)

Oct-22

Cash

17500

Service Revenue

17500

(To collection for services)

Oct-26

Salary Expenses

15400

Cash

15400

(To salary expenses paid)

Oct-28

Accounts Payable

8500

Cash

8500

(To paid on account)

Oct-31

Utility Expenses

1200

Utility Expenses Payable

1200

(To expenses booked)

Oct-31

Accounts Receivables

29000

Service revenue

29000

(To clients billed for services)

Oct-31

Supply Expenses

7350

Supplies

7350

(To supply expenses recorded)

Oct-31

Rent Expenses

4500

Prepaid Rent

4500

(Rent expenses recorded for the month)

Oct-31

Insurance Expenses

300

Prepaid Insurance

300

(To expenses recorded 7200*1/24)

Oct-31

Depreciation Expenses

1200

Accumulated Depreciation

1200

(To expenses recorded)

Oct-31

Salary Expenses

5500

Salaries Payable

5500

(To expenses recorded)

Oct-31

Unearned Fee

11300

Service revenue

11300

(To Service revenue recorded)

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