Question

Part 1:

Friday Line, a modeling agency, completed the following transactions during the first month of operations:

April 1: Stockholders invested $65,000 cash along with equipment valued at $32,000 in the company in exchange for 1,000 shares of stock.

April 3: Friday Line paid $9,500 cash to settle accounts payable.

April 6: Friday Line completed services for a client and immediately received $2,500 cash.

April 9: Friday Line completed a $7,500 project for a client who must pay within 30 days.

April 12: Friday Line made credit purchases of $9,200 for office equipment and $4,100 for office supplies. Payment is due within 10 days.

April 19: Friday Line paid $3,200 cash for the premium on a 12-month insurance policy.

April 21: Friday Line pre-paid $12,000 for 12 months’ rent for their office space.

April 22: Friday Line received $6,000 cash as a partial payment for the work completed on April 9.

April 25: Friday Line purchased $725 of additional office supplies on credit.

April 26: Friday Line completed work for another client for $3,125 on credit.

April 27: Friday Line paid a dividend of $6,500 cash to its stockholders.

April 30: Friday Line paid $525 cash for this month’s utility bill.

Instructions:

Prepare journals for the above economic transactions and include the effect that each transaction has on the accounting equation. Use the following assignment template for Friday Line Co.

Part 2

The unadjusted trial balance of Bolton Consulting is entered on the partial worksheet below.

Bolton Consulting

Work Sheet

For the year ended December 31

Account

Unadjusted Trial Balance

Adjustments

Adjusted Trial Balance

Income Statement

Balance Sheet and Statement of Stockholders’ Equity

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Debit

Credit

Cash

31,000

Accounts Receivable

8,000

Supplies

12,500

Automobiles

175,000

Accum. Depr. - Autos

52,000

Accounts payable

17,500

Unearned fees

26,500

Salaries payable

Capital Stock

58,000

Dividends

42,500

Fees earned

241,750

Salary expense

91,000

Rent expense

35,750

Advertising expense

Supplies expense

Depreciation expense

______

______

Totals

395,750

395,750

Answer 1

Part 1)
Journal Entries:					Effect on Accounting Equation:
Date	Acc Title	Debit $	Credit $		Assets:				Liabilities+ Share Equity
1-Apr	Cash	65000			Cash	other Current Assets	Fixed Assets	=	Liabilities +	common stock +	Ret. Earnings
	Equipment	32000			65000		32000			97000
	Common stock		97000
	(being capital infused in company - 1000 shares)
3-Apr	Accounts payable	9500			-9500			=	-9500
	Cash		9500
	(creditors paid)
6-Apr	Cash	2500			2500			=			2500
	Service revenue		2500
	(services revenue cashed)
9-Apr	Accounts receivable	7500				7500		=			7500
	Service revenue		7500
	(being service revenue recorded)
12-Apr	Office Equipment	9200				4100	9200	=	13300
	Office supplies	4100
	Accounts payable		13300
	(office equipment and supplies purchased on credit)
19-Apr	Prepaid Insurance	3200			-3200	3200		=
	Cash		3200
	(insurance purchased for a year)
21-Apr	Prepaid rent	12000			-12000	12000		=
	Cash		12000
	(rent paid for a year)
22-Apr	Cash	6000			6000	-6000		=
	Accounts receivable		6000
	(collection of debtors)
25-Apr	Office supplies	725				725		=	725
	Accounts payable		725
	(supplies purchased on credit)
26-Apr	Accounts receivable	3125				3125		=			3125
	Service revenue		3125
	(being service revenue recorded)
27-Apr	Dividend	6500			-6500			=			-6500
	Cash		6500
	(being dividend paid to shareholders)
30-Apr	Utilities Expenses	525			-525			=			-525
	Cash		525
	(utilities expenses incurred)				41775	24650	41200	=	4525	97000	6100
							107625	=	107625

Part II) The things are not clear and figures are scattered please, so can't reply.