iD edugen.wileyplus.com Chegg Study Guided Solutions and Study Help I Chegg.com
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iD edugen.wileyplus.com Chegg Study Guided Solutions and Study Help I Chegg.com WileyPLUS How to take a screenshot on your Mac- Apple Support Kimmel, Financial Accounting, 8e Help I System Announceme ON BACK NEXT Debit Credit ASSIGNMENT RESOURCES Cash Accounts receivable Supplies Accounts payable Unearned service revenue $4,500 1,030 590 Accounting Cycle Review Assignment Accounting Cycle Review 4-4 (Part Lev ubmission $340 960 3,100 1,720 $6,120 $6,120 Review Results by StudyCommon stock Obiective Retained earnings The company underwent a major expansion in July. New staff was hired and more financing was obtained. Grouper conducted the following transactions during July 2017, and adjusts its accounts monthly. Purchased equipment, paying $3,200 cash and signing a 2-year note payable for $17,200. The equipment has a 4-year useful life. The note has a 6% interest rate which is payable on the first day of each following month. Issued 17,200 shares of common stock for $43,000 cash. Paid $3,000 cash for a 12-month insurance policy effective July 1 Paid the first 2 (July and August 2017) months' rent for an annual lease of office space for $3,400 per month. Paid $3,300 for supplies. Visited client offices and agreed on the terms of a consulting project. Grouper will bill the client, Connor Productions, on the 20th of each month for services July 1 2 3 3 6 a 10 Collected $1,030 cash on account from Milani Brothers. This client was billed in June when Grouper performed the service 13 Performed services for Fitzgerald Enterprises. This client paid $960 in advance last month. All services relating to this payment are now completed 14 Paid340 cash for a utility bill. This related to June utilities that were accrued at the end of June. 16 Met with a new client, Thunder Bay Technologies. Received $10,300 cash in advance for future services to be performed 18 Paid semi-monthly salaries for $9,500 20 Performed services worth 24,100 on account and billed customers. 20 Received a bill for $1,900 for advertising services received during July. The amount is not due until August 15 23 Performed the first phase of the project for Thunder Bay Technologies. Recognized $8,600 of revenue from the cash advance received July 16 27 Received $12,900 cash from customers billed on July 20Explanation / Answer
Interest expense on note payable accrued for July = $17200 x 6% x 1 / 12 = $86
Note: There is no separate accrued liability account in the chart of accounts provided for accruing the estimated utilities expense hence credited to accounts payable which is ideally credited on receipt of invoice.
Note: Only section (c) has been completed as requested. All accounts have been prepared though images uploaded do not show all. Ending balances for asset and liability accounts are shown except for retained earnings which will be closed only after posting of closing entries.
Cash Jul. 1 Bal. 4500 Jul. 1 3200 Jul. 2 43000 Jul. 3 3000 Jul. 10 1030 Jul. 3 6800 Jul. 16 10300 Jul. 6 3300 Jul. 27 12900 Jul. 14 340 Jul. 18 9500 Jul. 31 Bal. 45590 Accounts Receivable Jul. 1 Bal. 1030 Jul. 10 1030 Jul. 20 24100 Jul. 27 12900 Jul. 31 Bal. 11200 Prepaid Insurance Jul. 3 3000 Jul. 31 250 Jul. 31 Bal. 2750 Supplies Jul. 1 Bal. 590 Jul. 31 1100 Jul. 6 3300 Jul. 31 Bal. 2790 Prepaid Rent Jul. 3 6800 Jul. 31 3400 Jul. 31 Bal. 3400 Equipment Jul. 1 20400 Jul. 31 Bal. 20400 Accounts Payable Jul. 14 340 Jul. 1 Bal. 340 Jul. 20 1900 Jul. 31 Bal. 1900 Unearned Service Revenue Jul. 13 960 Jul. 1 Bal. 960 Jul. 23 8600 Jul. 16 10300 Jul. 31 Bal. 1700 Notes Payable Jul. 1 17200 Jul. 31 Bal. 17200 Common Stock Jul. 1 Bal. 3100 Jul. 2 43000 Jul. 31 Bal. 46100 Retained Earnings Jul. 1 Bal. 1720 Service Revenue Jul. 13 960 Jul. 20 24100 Jul. 23 8600 Salaries and Wages Expense Jul. 18 9500 Jul. 31 9500 Advertising Expense Jul. 20 1900 Insurance Expense Jul. 31 250 Rent Expense Jul. 31 3400 Supplies Expense Jul. 31 1100 Depreciation Expense Jul. 31 425 Accumulated Depreciation-Equipment Jul. 31 425 Jul. 31 Bal. 425 Interest Expense Jul. 31 86 Interest Payable Jul. 31 86 Jul. 31 Bal. 86 Salaries and Wages Payable Jul. 31 9500 Jul. 31 Bal. 9500 Utilities Expense Jul. 31 690 Income Tax Expense Jul. 31 1030 Income Taxes Payable Jul. 31 1030 Jul. 31 Bal. 1030Related Questions
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