Question

IL Post the above transactions to the Ledger accounts (T accounts) (20 %) III. Adjusting Entries (30%) and posting on T accounts (14%) Given the following information, and related to the previous entries above, prepare the adjusting entries and post to Ledger accounts. 1. Fees earned as of December 31, 2018 and not yet recorded, amount to $51,500. 2. Records show that $12,500 of cash receipts originally recorded as Unearned Revenue nad been earned as of December 31. 3. Make the necessary adjustments on the prepaid rent. 4. Fuel consumed during December amounts to $125. 5. The company uses de straight-line method of depreciation. The truck has a useful life of 8 years. Cash Accounts Receivable Truck Notes Payable Accounts Payable Dividends Payable Unearned Revenue Retained Earnings Dividends Service Revenue Maintenance Expense Fuel Expense Salaries Expense CapitalStock Rent Expense

Answer 1

Journal Entries Date Account Title and Explaination Debit Post. Ref. Credit (S) Dec.2 $ 80,000.00 Cash Capital Stock (To record Capital Stock issued in exchange of Cash) S 80,000.00 Dec.4 $ 45,000.00 Truck Cash Note Payable (To record Truck purchased and cash paid partial amount and note payable for balance) 15,000.00 30,000.00 $ Dec.5 $ 2,500.00 Prepaid Rent Cash (To record five months rent paid) 2,500.00 Dec.9 $ 11,300.00 Accounts Receivable Service Revenue (To record Service provided on account) $ 11,300.00

Dec.15 7,100.00 Salaries Expense Cash (To record salaries expense paid) 7,100.00 Dec.20 3,800.00 Cash Accounts Receivable (To record collection of receivables) $ 3,800.00 Dec.26 $ 34,400.00 $ 34,400.00 Cash Unearned Revenue (To record advance received for future service to be provided) Dec.29 7,500.00 Salaries Expense Salaries Payable (To record Salaries Expense ) $ 7,500.00 250.00 Dec.30 Fuel Expense Cash (To record Fuel Expenses paid) 250.00