Question

The CCBC Corporation had the following opening trial balance at the beginning of its fiscal year, July 1, 2018: Debit Credit Cash $ 7,700 Accounts receivable 6,600 Supplies 1,200 Equipment 13,800 Accumulated depreciation—equipment $ 5,500 Unearned revenue 2,750 Common shares 6,000 Retained earnings 15,050 Totals $ 29,300 $ 29,300 During the month of July, the following selected transactions took place: July 2 Paid $1,000 for two months’ rent in advance for July and August. 7 Purchased $200 of supplies on account. 14 Collected half of outstanding accounts receivable. 15 Borrowed $1,000 from the bank for one year at an interest rate of 5%. 21 Received $1,000 cash from a customer for services to be performed in August. 28 Performed $1,000 of services to a customer on account. Additional information: 1. At July 31, the company had performed $800 of services for a client that it had not billed or recorded. 2. Refer to the July 2 transaction where rent was paid in advance and adjust, if required. 3. Supplies on hand at July 31 were $500. 4. The equipment has a five-year useful life and uses straight-line depreciation. 5. Interest is due on the bank loan on the first day of each following month, beginning August 1. 6. As at July 31, the company owed $2,500 of salaries to its employees for the month just ended. 7. As at July 31, the company had earned $2,000 of revenue that had been paid in advance.

(a) Record the July transactions. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit

Answer 1

Credit Debit $ 1,000 $ 1,000 $ 200 $ 200 $ 3,300 $ 3,300 Date Accounts Title and Explanation Jul-01 Prepaid Rent Cash (Being advance rent paid) Jul-07 Supplies Accounts Payable (Being Supplies bought on Account) Jul-14 Cash Accounts Receivable (Being Cash received from Accounts Receivable) Jul-15 Cash Bank Loan (Being money borrowed from Bank) Jul-21 Cash Accounts Receivable (Being Cash received from Accounts Receivable) Jul-28 Accounts Receivable Service Revenue (Being service provided on Account) $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000

1. $ 800 $ 800 $ 500 $ 500 3. $ 900 1200+200-500 $ 900 4. 230 13800/5/12 Additional Information Accounts Receivable Service Revenue (Being service provided on Account) Rent Expenses Prepaid Rent (Being advance is adjusted) Supplies Expenses Supplies (Being Supplies used recorded) Depreciation Expenses Accumulated Depreciation (being depreciation Expenses recorded for July) Interest Expenses Interest payable (being interest payable for July) Salaries Expenses Salaries payable (being Salaries Expenses is unpaid for July) Unearned Revnue Service Revenue (being Service revenue earned) $ 230 1000*5%*1/12 $ 2,500 $ 2,500 $ 2,000 $ 2,000