Question

TRANSACTIONS This should match the last 5 digits of July $XX XXX of common shares in the new company are sold for cash. Purchased land and building, worth $120,000 and $240,000 respectively by borrowing all the funds from the bank on a long-term loan. Paid $10,800 for the premium on a one-year insurance policy effective today. Purchased $5,600 of office supplies for cash. Paid an employee $1,800 for two weeks' salary. Summarized and recorded the billings to customers for the first three weeks of July for storage fees earned. Billings totaled $15,000. Received $9,000 from customers in partial settlement of accounts billed on the 21st. 28 Paid another $1,800 for two weeks' salary. Paid the month's $600 phone bill. Repaired leaking roof for $1,700 on account. Paid out dividends to shareholders of $3,200. Made a payment to the bank of $1,000 interest and $4,000 to pay the amount owing for the bank loan. Use the following information to journalize and post the adjustments for the month. a. One month's insurance coverage was consumed. b. There was $3,100 of office supplies on hand at the end of the month. c. Depreciation on the buildings was estimated to be $2,400 per month The employee had earned $360 of unpaid and unrecorded salary. e. The company had earned $1,900 of storage fees that had not yet been billed. نه REQUIRED: 1. Analyze each transaction and record it in the general journal. 2. Post the transactions to T accounts. 3. Prepare an adjusted trial balance as at July 31. 4. Prepare an income statement for the month. 5. Prepare a statement of changes in equity. 6. Prepare a classified statement of financial position. (Note: $48,000 of the bank loan is due within the next year.) 7. Prepare closing journal entries. 9. Post the closing entries to T accounts. 10. Prepare a post closing trial balance.

Can you help me from question 2 to question 10 please?

Answer 1

JOURNAL ENTRIES

Date	Particulars	Dr ($)	Cr ($)
July 1	Bank A/c	360,000
	To Long Term Loan A/c		360,000
	(Being long term loan received from bank to buy land and building $120,000 + $240,000 respectively)
1	Prepaid Insurance A/c	10,800
	To Cash A/c		10,800
	(Being insurance premium paid for the one-year insurance policy)
2	Supplies Expense A/c	5,600
	To Cash A/c		5,600
	(Being office supplies purchased for cash)
14	Salary A/c	1,800
	To Cash A/c		1,800
	(Being 2 weeks salary paid for an employee)
21	Storage Fees A/c	15,000
	To Account Receivable A/c		15,000
	(Being 1st 3 weeks of july earned storage fees from customer)
28	Account Receivable A/c	9,000
	To Cash A/c		9,000
	(Beeing partial settlement received from the customer of statement accounts billed on 21st
28	Salary A/c	1,800
	To Cash A/c		1,800
	(Being another 2 weeks salary paid to an employee)
29	Telephone Bill A/c	600
	To Cash A/c		600
	(Being phone bill paid)
30	Repair A/c	1,700
	To Cash A/c		1,700
	(Being leaking roof repaired)
31	Dividends A/c	3,200
	To Cash A/c		3,200
	(Being dividends paid to shareholders)
31	Long Term Loan A/c	4,000
	Interest Expense	1,000
	To Cash A/c		5,000
	(Being 1st month due paid along with interest)
	ADJUSTING JOURNAL ENTRY
a	Insurance Expenses A/c	900
	To Prepaid Insurance A/c		900
	(Being 1 month's insurance coverage consumed 10800/12=900)
c	Depreciation Expenses- Building	2,400
	To Accumulated Depreciation - Building		2,400
	(Being depreciation paid)
d	Salary A/c	360
	To Accured Salary Payable A/c		360
	(Being employee salary earned but not paid and recorded)
e	Unearned Revenue	1900
	Service Revenue		1900
	(Being revenue earned but not yet billed)

T- Accounts

Prepaid Insurance (balance sheet account)

Dr Increases an asset	Cr Decreases an asset
Preliminary Balance 10,800	Adjusting Entry 900
Correct Balance 9,900

Insurance Expenses (Income Statement account)

Dr Increases an expense	$	Cr Decrease an expense
Preliminary Balance	10,800
Adjusting Entry	900
Correted Balance	9,900

BUILDINGS $240,000

Accumulated Depreciation - $28,800 (2400*12)

Depreciation expenses for a month $2,400

Accumulated Depreciation - Building (balance sheet account)

Dr Decreases a contra asset	Cr Increases a contra asset
	Preliminary Balance 28,800
	Adjusting Entry 2,400
	Correct Balance 26,400

Depreciation Expenses - Buildings (income Statement account)

Dr Increase an expense	Cr Decrease an expense
Preliminary Balance 0
Adjusting Entry 2,400
Correct Balance 2,400

Salary Payable - (Balance sheet account)

Dr Decreases a Liability	Cr Increases a Liability
	Preliminary Balance 1,800
	Adjusting Entry 360
	Correct Balance 1,440

Salary Expense (income statement account)

Dr Increases an expense	Cr Decreases an expenses
Preliminary Balance 3,600
Adjusting Entry 360
Correct balance 4,200

Unearned Revenues $1,900 (total biling $15,000 - $9,000 received from customer = $6000)

Unearned Revenues (balance sheet account)

Dr Decreases a liability	Cr Increases a liability
	Preliminary Balance 6,000
Adjustment Entry 1,900	Correct balance 4,100

Service Revenue (income statement account)

Dr decreases revenues	Cr Increases revenues
	Preliminary Balance 15,000
	Adjusting Entry 1,900
	Correct balance 16,900