Question

Debit Credit 54500 Accounts receivable 100 Supplies 590 $300 Accounts payable Unearned service revenue Common stock Retained earnings 3.100 56. 120 16.120 The company underwent a major expansion in July, New staff was hired and more facing was obtained Grouperconducted the following transactions during July 2022. and adjust counts monthly July 1 Purchased equipment paying $3.200 cash and signing a 2 year note payable for $17.200. The equipment has a 4-year useful . The note has a interest rate which is payable on the first day of each following month 2 Issued 17 200 shares of common stock for $43.000 cash 3 Paid $1000 cash for a 12-month insurance policy effective July 1 3 Paid the first 2 Ouly and August 2022) months rent for an office space for $3.400 per month 6 Paid $300 for supplies Visited client offices and agreed on the terms of consulting project Grouser will be the client Connor Productions.com the 20th of each month for services performed Collected $1030 cash on account from Milan Brothers. This client was billed in June when Grouper performed the Service Performed services for Fitzgerald Enterprises. This client paid $960 in advance last month. All services relating to this payment are now completed 14 Paid $340 cash for a utility bil. This related to June utilities that were accrued at the end of June. 16 Met with a new client, Thunder Bay Technologies. Received $10.300 cash in advance for future services to be performed 18 Paid semi-monthly salaries for $9,500 20 Performed services worth $24.100 on count and billed customers 20 Received a bill for $1,900 for advertising services received during July. The amount is not due until August 15 Performed the first phase of the project for Thunder Bay Technologies. Recognized $8.600 of revenue from the cash * advance received July 16 27 Received $12.900 cash from customers billed on July 20, Adjustment data 1. Adiustment of prepaid insurance. 2 Adjustment of prepaid rent. 3 Supplies used $1.100 4. Equipment depreciation, $425 per month 5 Accrual of interest on note payable 6. Salaries for the second half of July 59.500, to be paid on August 1. 7. Estimated utilities expense for July 5690 invoice will be received in August). 8. Income tax for July $1,030, will be paid in August The chart of accounts for Grouper Computer Consultants contains the following accounts Cash, Accounts Receivable, Supplies Prepaid insurance Prepaid Rent Equipment. Accumulated Depreciation-Coupment Accounts Payable. Notes Payable Interest Payable, Income Taxes Payable. Salaries and Wages Payable, Uneared Service Revenue Common Stock Retained Earnings Dividends. Income Summary. Service Revenue Supplies Expense, Depreciation Expere Insurance Expense, Salaries and Wages Expense. Advertising Expense. Income Tax Expense. Interest Expense, Rent Expense, Supplies Expense, and Utilities Expense.

Answer 1

Grouper Computer Consultants Journal Enteries Debit in $ Credit in $ Particulars Date 1.7.2022 Equipment a/c Dr. 20400 To Cash 3200 To Note Payable 17200 |(Equipment purchased) 2.7.2022 Cash a/c 43000 Dr. To Common Stock 43000 (Common Stock issued) Prepaid Insurance a/c 3.7.2022 Dr. 3000 To Cash 3000 (12 month insurance paid) Prepaid Rent a/c 6800 3.7.2022 Dr. To Cash 6800 (2 months rent paid) 6.7.2022 Supplies a/c Dr. 3300 To Cash 3300 (Supplies purchased) 9.7.2022 No Journal Entry 10.7.2022 Cash a/c Dr. 1030 To Accounts Receivable 1030 (Cash from debtors) 13.7.2022 Unearned Service Revenue a/c Dr. 960 To Service Revenue 960 |(Revenue earned)

Debit in $ Credit in $ Particulars Date 14.7.2022 Accounts Payable a/c Dr. 340 To Cash 340 (Creditors paid) 16.7.2022 Cash a/c Dr. 10300 To Unearned Service Revenue 10300 (Advance from client) 18.7.2022 Salaies Expense a/c 9500 Dr. To Cash 9500 |(Salary paid) 20.7.2022 Accounts Receivable a/c 24100 Dr. 24100 To Service Revenue (Revenue earned) 20.7.2022 Advertising Expense a/c Dr. 1900 To Accounts Payable 1900 (Expense accrued) 23.7.2022 Unearned Service Revenue a/c Dr. 8600 To Service Revenue 8600 |(Revenue earned) 27.7.2022 Cash a/c Dr. 12900 To Accounts Receivable 12900 (Cash from debtors)

Adjusting Enteries Debit in $ Credit in $ Particulars Date 31.7.2018 Insurance Expense a/c Dr 250 To Prepaid Insurance 250 (Insurance expensed) 3000 12 31.7.2018 Rent Expense a/c Dr. 3400 To Prepaid Rent 3400 (Insurance expensed) 3000 12 31.7.2018 Supplies Expense a/c Dr. 1100 To Supplies 1100 (Supplies Expensed) 31.7.2018 Depreciation Expense Equip a/c To Accum. Depre Equip 425 425 (To record depreciation) 31.7.2018 Interest Expense a/c Dr. 86 To Interest Payable 86 (Interest accrued) 17200 x 6% x 1/12 31.7.2018 Salaries expense a/c To Salaries Payable |(Being Salary Expense accrued) Dr. 9500 9500 31.7.2018 Utilities Expense a/c To Accounts Payable |(Expenses accrued) Dr. 690 690 31.7.2018 Income Tax Expense a/c To Income Tax Payable 1030 Dr. 1030 (Income Tax accrued)

Worksheet For the Month ending 31.7.2022 Adjustments Debit in $ Credit in $ Debit in $ Credit in $ Debit in $ Credit in $ Unadjusted Adjusted Particulars Cash 45590 45590 Accounts Receivable 11200 11200 Supplies 3890 1100 2790 Prepaid Insurance 250 3000 2750 3400 Prepaid Rent 6800 3400 20400 20400 Equipment Accum. Depre - Equip unts Payable 425 425 1900 690 2590 Unearned Service Revenue 1700 1700 Salaries Payable 9500 9500 Interest Payable 86 86 Income Tax Payable 1030 1030 Note Payable 17200 17200 Common Stock 46100 46100 Retained Earnings 1720 1720 Service Revenue 33660 33660 Salaries Expense 9500 9500 19000 Insurance Expense 250 250 Rent Expense 3400 3400 Supplies Expense 1100 1100 Depreciation Expense- Equip 425 425 Interest Expense 86 86 Advertising Expense 1900 1900 Utilities Expense 690 690 Income Tax Expense 1030 1030 Totals 114011 102280 102280 16481 16481 114011 0

Statement of Income For the Month ending 31.7.2022 Service Revenue 33660 Less: Salaries Expense 19000 Insurance Expense 250 Rent Expense 3400 Supplies Expense 1100 Depreciation Expense- Equip 425 Interest Expense 86 Advertising Expense 1900 Utilities Expense 690 26851 6809 Income Tax Expense -1030 Net Income 5779 Statement of Retained Earnings For the Month ending 31.7.2022 Beginning Balance 1720 Net Income 5779 7499

Balance sheet As at 31.7.2022 Amounts in $ Amounts in $ Liabilities Amounts in $ Amounts in $ Assets Current Liabilities Current Assets Accounts Payable Cash 45590 2590 Accounts Receivable 11200 Unearned Service Revenue 1700 Salaries Payable Supplies 2790 9500 Prepaid Insurance Interest Payable 2750 86 65730 Income Tax Payable 3400 Prepaid Rent 1030 14906 Non Current Liabilities Non Current Assets Note Payable 17 Equipment 20400 Accum. Depre- Equip -425 19975 Shareholders Equity Common Stock 46100 Retained Earnings 7499 53599 85705 Total Liabilities & Equity Total Assets 85705