Question

Record each transactional or adjusting transactional or adjusting journal entry described in the notes below for Rusty's Repair, automobile repair "services company. Assume that adjusting entries are made Quarterly (i.e., every 3 months). Plea months). Please write the journal entries on the lines below (not all lines may be needed). 1. On February 8, the company pays $5,500 for January's utilities. 2. A customer pays $2,900 in advance for repair services on March 19. The company records their salaries and wages accrual on March 31 (employees work Monday through Friday and are paid every week). Assume the total salaries and wages for each week is $7,400 and March 31 falls on a Monday. Ignore any holidays. 4. By March 31, the company estimates that it has completed 70% of the work on the March 19 job. (See JE #2) 5. By March 31, the company has $11,200 of supplies on hand. Assume that the beginning January 1 balance in supplies was $30,600 and that no supplies were purchased during the quarter. 6. On April 4, the company pays employees for the week's pay period (See JE #3)

Answer 1

The follwoing are the Journal entries:

1.Feb 8: Debit: concerned utility expenses

Credit: Cash/Bank

2. Debit: Cash/Bank

Credit: Advance from customers(under current liabilities in Balance sheet)

3.Debit: Salaries & wages: 1057

Credit: Salaries & Wages Payable

(Here i assumed that the day March 31 salaries only pending to be paid. Before week payments are done)

4. Adjusting Journal Entry is:

Debit:Advance from customers: 2030

Credit: Deemed Sales/Sales: 2030

5. Adjusting Journal Entry is:

Debit: Opeing Rawmaterials: 30600

Credit: Closing RM: 11200

Credit: Closing Work in progress: 19400

6. April 4:

Debit: Salaries & Wages: 6343

Debit: Salaries & wages Payable: 1057

Credit: Cash/Bank: 7400