Question

Record the following journal entries and post to the T-accounts for LAX Company for the month of March:

1. On 3/1, Common stock was issued for $60,000.
2. On 3/3, LAX signed a 6% note at State Bank for $85,000.
3. On 3/4, LAX purchased printing equipment for $67,250. One month of insurance expense
4. On 3/6, LAX purchased printing supplies on account for $3,250. Salaries and utilities expense of $695 and $286, respectively
5. On 3/7, LAX purchased prepaid rent for $24,000 and janitorial expense for $165. One month of interest expense
6. On 3/10, LAX paid salaries of $905.
7. On 3/15, LAX provided printing services for a client and received $ 6,525 in cash. Supplies on had were $1,305
8. On 3/20, LAX provided printing services for a client that promised to pay $4,700 in 30 days.
9. On 3/21, LAX paid for one-half of the printing supplies purchased on 3/6.
10. On 3/24, LAX paid salaries of $875.
11. On 3/26, LAX collected a partial payment of $1,250 from the client from 3/20.
12. On 3/29, LAX paid for $115 internet services.

Prepare the trial balance, and make the following adjustments (use AP for all payables):
1. Record one month of rent expense, accrue for one month of interest expense (use AP account), and record one month of depreciation on the equipment (5-year asset).
2. Accrue for salaries expense and utilities expense of $545 and $286, respectively.
3. Supplies on hand were $1,085.

Cash Accounts receivable Prepaid rent Supplies inventory Trial balance Financial Statements Adjusting entries Credits Adjusted trial balance Credits Balance Sheet Trial balance Statement of Income Statement of Cash Flows Debits Credits Accounts Debits Debits Revenue Net income Cash Assets + Depreciation Accounts receivable Cash - Accounts receivable Prepaid rent Expenses Accounts receivable Supplies inventory Cleaning expense Prepaid rent Supplies inventory - Prepaid insurance Depreciation expense -Supplies Printing equipment Rent expense Accumulated depreciation Accounts payable Printing equipment + Accounts payable Accounts payable Notes payable Printing equipment Common stock Cash from operations Interest expense Accumulated depreciation Notes payable Intemet expense Total assets Salaries expense Common stock Equipment Cash from investing Supplies expense Revenue Liabilities Utilities expense Cleaning expense Accounts payable Total expenses Notes payable Depreciation expense Stock Notes payable Rent expense Total liabilities Salaries expense Revenue Cleaning expense Internet expense Interest expense Cash from financing Net income (loss) Intemet expense Stockholders' Equity Beginning balance Cash flows Salaries expense Common stock Retained eam Supplies expense Utilities expense Statement of Stockholders' Equity Total stockholders' equity Total liabilities & equity Beginning balance Record the following journal entries and post to the T-accounts for LAX Company for the month of January: Common stock 1. On 1/1, Common stock was issued for $57,500. Prepare the adjusted trial balance by making the the following adjustments (use AP for all payables): Net income (loss) 2. On 2/3, LAX signed a 6% (.5% per month) note at State Bank for $95,000. 1. Recognize one month of rent expense, interest expense, and depreciation on equipment (5- year asset) Retained eamings 3. On 1/4, LAX purchased printing equipment for $79,500. Dividends 4. On 1/6, LAX purchased printing supplies on account for $3,300. 2. Accrue for salaries expense and utilities expense of $895 and $386, respectively Ending balance 5. On 1/7, LAX purchased prepaid rent for $18,000 and paid cleaning services of $150. 6. On 1/10, LAX paid salaries of $950. 3. Supplies on hand were $1,050 7. On 1/15, LAX provided printing services for a client and received $ 6,750 in cash. 8. On 1/20, LAX provided printing services for a client that promised to pay $4,300 in 30 days. 9. On 1/21, LAX paid for one-third of the printing supplies purchased on 1/6. 10. On 1/24, LAX paid salaries of $950. 11. On 1/26, LAX collected a partial payment of $1,300 from the client from 1/20. 12. On 1/29, LAX paid for $95 WiFi.

Answer 1

Used printed data (Typed data was amibiguous)

LAX Company Journal Enteries Date Particulars Mar-01 Cash a/c Dr. To Common Stock (Common Stock issued) Debit in $ Credit in $ 57500 57500 95000 Mar-03 Cash a/c To Note Payable (Signed Note Payable) 95000 79500 Mar-04 Printing Equipment a/c Dr. To Cash (Computer Equipment purchased) 79500 3300 Mar-06 Office Supplies a/c Dr. To Accounts Payable (Supplies on account) 3300 18000 150 Dr. Mar-07 Prepaid Rent a/c Dr. Cleaning Expense a/c To Cash (Expense paid) 18150 Dr. 950 Mar-10 Salaries Expense a/c To Cash (Salaries paid) 950 Mar-15 6750 Cash a/c Dr. To Printing Serivces Revenue (Services provided for cash) 6750 4300 Mar-20 Accounts Receivable a/c Dr. To Printing Serivces Revenue (Services provided on account) 4300 1100 Mar-21 Accounts Payable a/c Dr. To Cash (Creditors paid) 3300 / 3 = 1100 1100 Dr. 950 Mar-24 Salaries Expense a/c To Cash (Salaries paid) 950 1300 Mar-26 Cash a/c Dr. To Accounts Receivable (Cash from debtors) 1300 95 Mar-29 Internet Expense a/c Dr. To Cash (Cash paid for Internet services) 95

Adjusting Enteries Date Particulars Mar-31 Rent Expense a/c Dr. To Prepaid Rent (Insurance expensed) 18000/12 Debit in $ Credit in $ 1500 1500 475 Mar-31 Interest Expense a/c Dr. To Interest Payable (Interest accrued) 95000 x 6% x 1/12 475 1325 Mar-31 Depreciation Expense a/c Dr. To Accum Depre - Comp. Equip. (To record depreciation) 79500/(5 x 12 ) 1325 Dr. 895 Mar-31 Salaries Expense a/c To Salary Payable (Salary accrued) 895 Dr. 386 Utilities Expense a/c To Accounts Payable (Expenses accrued) 386 2250 Mar-31 Supplies Expense a/c Dr. To Supplies (Supplies expensed) 3300 - 1050 = 2250 2250

Worksheet For the month ending Mar 31 Unadjusted Adjustments Adjusted Particulars Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Cash 59805 59805 Accounts Receivable 3000 3000 Prepaid Insurance 18000 1500 16500 Office Supplies 3300 2250 1050 Printing Equipment 79500 79500 Accum Depre - Comp. Equip. 1325 1325 Accounts Payable 2200 386 2586 Interest Payable 475 475 Salary Payable 895 895 Note Payable 95000 95000 Common Stock 57500 57500 Computer Consulting serivces 11050 11050 Cleaning Expense 95 Depreciation Expense 1325 1325 Insurance Expense 1500 1500 Interest Expense 475 475 Rent Expense 150 150 Salaries Expense 1900 895 2795 Supplies Expense 2250 2250 Utilities Expense 386 386 Totals 165750 165750 6831 6 831 168831 168831 95 11050 Statement of Income For the month ending Mar 31 Computer Consulting serivces Less: Cleaning Expense Depreciation Expense Insurance Expense Interest Expense Rent Expense Salaries Expense Supplies Expense Utilities Expense Net Income 95 1325 1500 475 150 2795 2250 386 8976 2074 Statement of Stockholders Equity For the month ending Mar 31 Common Retained Stock Earnings Beginning Balance 0 0 Add: Capital 57500 57500 Less:Net Income 2074 Ending Balance 57500 2074 Totals 0 57500 57500 2074 59574 0

Balance sheet As at Mar 31 Assets Current Assets Cash Accounts Receivable Prepaid Insurance Office Supplies Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Current Liabilities 59805 Accounts Payable 2586 3000 Interest Payable 475 16500 Salary Payable 895 3956 1050 80355 Non Current Liabilities Note Payable 95000 79500 -1325 78175 Shareholders Equity Common Stock 57500 Retained Earnings 2074 59574 158530 Total Liabilities & Equity 158530 Non Current Assets Computer Equipment Accum Depre-Comp. Equip. Total Assets 2074 Statement of Cashflow For the month ending Mar 31 Cashflow from Operating Activity Net Loss Adjustments: Depreciation Expense Increase in Accounts Receivable Increase in Prepaid Insurance Increase in Office Supplies Increase in Accounts Payable Increase in Interest Payable Increase in Salary Payable Cash used for Operating Activity 1325 -3000 - 16500 -1050 2586 475 895 - 15269 -13195 Cashflow from Investing Activity Equipment purchased Cash used for Investing Activity -79500 -79500 57500 95000 Cashflow from Financing Activity Common Stock issued Note Payable issued Cash generated from Financing activity Net Increase in Cash Beginning Cash Balance Ending Cash Balance 152500 59805 59805