Question

Instruction: Super Plumbing Inc, completed the following TEN transactions during June 2020. its first month of operation. Assume that the company makes adjustments at the end of every month. Record these transactions in general journal entry form. Style conventions for journalizing must be followed. For example, a date should be provided for each transaction, indent credited accounts, and do not abbreviate account titles. Explanations of transactions are not required. Please use correct and complete account titles. Otherwise, points will be deducted. June 1 Purchased equipment in the amount of $ 40,000 by signing a one-year note with a stated interest rate of 6% per year. The interest and principal of the note will be paid off on the maturity date (5/31/2021). 2 Prepaid $ 600 cash for four-month insurance (from 6/1/2020 to 9/30/2020). 8 Provided plumbing services of $5,600 on account. 13 Received $ 4,300 cash in advance for maintenance services to be performed in the future. 17 Purchased $ 1,780 of supplies on account. 22 Collected $ 1,200 cash from accounts receivable. 30 Accrued unpaid June salaries of $ 3,600 30 Counted supplies and determined that $ 420 of supplies (purchased on June 17) remain on hand at the end of June. Adjusted for supplies expense. 30 Adjusted for June insurance expense (see June 2). 30 Accrued June interest on the note (see June 1).

Answer 1

Answer:

Gener Credit Date June. 1 General Journal Equipment Notes Payable Debit $40,000 $40,000 June. 2 $600 Prepaid Insurance Cash $600 June. 8 $5,600 Accounts Receivable Service Revenue $5,600 June. 13 Cash June. 13 cash $4,300 Deferred Revenue Deferred Revenue or Unearned Revenue $4,300 $1,780 June. 17 Supplies Accounts Payable $1,780 June. 22 Cash June. 22 cash $1,200 Acounts Receivable Accounts Receivable $1,200 $3,600 June 30 Salaries and Wages Expenses Salaries and Wages Payable $3,600 $1,360 June. 30 Supplies Expenses Supplies $1,360 June. 30 $150 Insurance Expense Prepaid Insurance $150 June. 30 $200 Interest Expense Interest Payable $200

Calculations:

Supplies expense = 1780 - 420 = $1,360

Insurance expense for June = 600 / 4 = $150

Interest expense for June = 40000 * 6%/12 = $200