Question

Transactions for Blackberry Mountain Inc for the month of January is as follows: 1 Company issued common stock for $21,000 2a Supplies are purchased for $3,000. 2b Insurance is paid for 6 months beginning January 1: $5,400 (record as an asset) 2c Rent is paid for 3 months beginning in January: $4,500 (record as an asset) 3 Blackberry Mountain Inc borrows $45,000 from 1st State Bank at 12% annual interest. 6 An equipment is purchased for $22,500 cash. It will be used for 3 years and will be depreciated monthly using straight-line depreciation with no salvage value. A full month of depreciation will be charged in January 9 Services are performed for customers on account. Invoices totaling $9,800 are mailed. 10 Services are performed for cash customers: $7,600. 15 Blackberry Mountain Inc borrows $16,000 from 2nd State Bank at 9% annual interest. 16 Wages for the first half of the month are paid on January 16: $4,200 20 The company receives $3,000 from a customer for an advance order for services to be provided in January and February. 25 Collections from customers on account (see January 9 transaction): $4,500. 30 A $3,100 utility bill for January arrived. It is due on February 15. Additional information for the adjusting entries at January 31: a. The company completed 60% of the deliveries for the customer that paid in advance on January 20th. b. Interest is accrued for the two bank loans (assume a full month for the 1st State Bank loan and month for the 2nd State Bank loan). c. The last 2 weeks wages earned by employees are $4,200 and will be paid on February 3rd. d. Record January depreciation. e. Adjust the prepaid asset accounts as needed. Instructions 1. Prepare journal entries for each event 2. Prepare the t-accounts 3. Prepare Adjusting Entries. 4. Prepare Income Statement, Balance sheet, and Statement of Retained Earnings. 5. Prepare closing Entries.

Answer 1

As per the Required information provided in Question The journal entries and adjusting entries are answered , closing entry , T account and income statment not answered due to lack of information in question provided

whaterever information is provided answer is given as per that

All the journal entries and adjusting entries are shown in attachment with explanation

a Stock issued by company is assumed to be in cash

b supplies are also issued in cash
Accumulated depreciation All Dr $625 . 1o Equipment Alc $625 Bring depreciation for the month of Jan- O Charged ) Account Receivable Ale De $9800 o To Customers Ale $9000 Being Services provided to Custered) 6 10 Cash Ale de $ 7600 To customees ALC $7600 Bang service provided for cash to Customers) Cash Alc Dr $ 16000 To Loan Ale $ 16000 eing loan leciend from 2 State Bank @ 9%) - Wages Ale Dr $4200 To Cash Alc 42000 (Being wages paid) - Advance Received Alc de $3000 To customed Ale $3000 Being Advance paid by customer for U month of Tan sfeb)

6) Interest Exp Ale Dr $400 a To Inteust payable Alc $450 p Bring Intenst payable for P State Bank for O month of Jan Int Exp Ale de $ 60 to Inteust payabl 860 $ Being Intaust accured for a state Bank Loan for / Month) Me (C) Wages Ale se $4200 - To salary payable Al $4200 cm being wages to be paid on 3rd fet) depreciation Ale De $625 To Accumaled dep Ale $625 y dep transfered to pllons Ale] LA 4500 X/2 XL = 450 16000 X 9 % x 42 x 1 - 60 *