Question

on july 1 2017 melanie thornhill began her

oblem 3-14B Journalizing, posting, adjusted trial balance, adjusting entries (monthly), financial statements (quarterly) 104,5,6,7 senado adj TB CHECK FIGURES: 3. Cash balance, July 31, 2017 = $3,400: 4. Dr = $45,820: 6. Dr = $50,100: 7. Profit $7,550 On July 1, 2017, Melanie Thornhill began her third month of operating an electronics repair shop called MT Repairs out of her dad's garage. The following occurred during the third month of operations: July 1 1 2 3 4 7 15 22 31 Collected $3,600 as a deposit for work to be done at the local college in the fall. Melanie Thornhill withdrew $4,000 cash for personal expenses. Paid $2,200 for repair supplies purchased on account last month. Did work for a client and immediately collected $1,400. Performed services for a customer and collected $3,600. Hired a new technician to start next week on a casual basis at $400 per day. Melanie withdrew cash of $1,000 for personal use. Purchased repair supplies for cash; $1,600. Paid wages of $2,800. Required 1. Prepare general journal entries to record the July transactions. 2. Set up the following T-accounts with June 30 adjusted balances: Cash (101), $6,400, Repair Sup- plies (131), $3,000; Tools (161), $16,800; Accumulated Depreciation, Tools (162), $560, Accounts Payable (201), $3,200; Unearned Revenu& (233), $700; Melanie Thornhill, Capital (301) $?, Melanie Thornhill, Withdrawals (302), $0; Revenue (401), $25,800; Depreciation Expense, Tools (602), $560, Wages Expense (623), $1,960; Rent Expense (640), $8,000; and Repair Supplies Expense (696), $2,700. 3. Post the entries to the accounts; calculate the ending balance in each account. 4. Prepare an unadjusted trial balance at July 31, 2017. 5. Use the following information to prepare and post adjusting entries for the month of July: a. The tools have an estimated life of five years with no residual value. b. One-quarter of the repair supplies balance remained on hand at July 31. c. Accrued the July rent expense of $4,000, it will be paid in August. d. $3,800 of the unearned revenues remained unearned as at July 31. A Pronam an adinerad trial halance. Hints: As July 31, the unadjusted trial balance is $45,820, the adjusted trial balance is $50,100, net income is $7,550. Some data are already recorded in the ledger. Note that the owner's capital is unknown. You have to find it. For that purpose, a June 30 adjusted trial balance template is provided.

Answer 1

MT Repairs Req 1 Journal entries Debit Credit Calculation Date Account 1-Jul Cash 3,600 Unearned Revenue 3,600 1-Jul Melanie Thornhill, Withdrawals 4,000 Cash 4,000 2-Jul Accounts Payable 2,200 Cash 2,200 3-Jul Cash 1,400 Revenue 1,400 4-Jul Cash 3,600 Revenue 3,600 7-Jul No entry 15-Jul Melanie Thornhill, Withdrawals 1,000 Cash 1,000 22-Jul Repair Supplies 1,600 Cash 1,600 31-Jul Wages Expense 2,800 Cash 2,800

MT Repairs Req 2 & 3 T Accounts Date Date Debit Date Credit Debit Date Credit Debit Credit Debit Date Credit Date Date Date Cash Repair Supplies Tools Accumulated Depreciation- Tools $ 4,000 $ 2,200 $ 1,000 $ 1,600 $ 2,800 $6,400 $16,800 1-Jul $ 1-Jul 1-Jul 1-Jul 3,000 1-Jul 560 $3,600 $1,600 31-Jul $ 1-Jul 2-Jul 22-Jul 280 3-Jul $1,400 $3,450 15-Jul 31-Jul $3,600 4-Jul 22-Jul 31-Jul $ 3,400 $1,150 $16,800 Bal. $ Bal Bal. Bal. 840 Accounts Payable Melanie Thornhill, Capital Unearned Revenue Melanie Thornhill, Withdrawals $ 2,200 $ 9,160 $3,200 $ 4,000 $ 1-Jul 2-Jul 1-Jul 1-Jul 1-Jul 700 $ 4,000 $ 1,000 $3,600 31-Jul 1-Jul 1-Jul 31-Jul $ 15-Jul 500 Bal. $ 3,800 $9,160 Bal $5,000 $5,000 Bal. Bal Depreciation Expense- Tools $ Rent Expense Revenue Wages Expense $ 1,960 $ 8,000 $25,800 $ 1,400 1-Jul 1-Jul 1-Jul 1-Jul 560 $ 2,800 $ $ 4,000 3-Jul 31-Jul 31-Jul 31-Jul 280 $ 3,600 4-Jul 31-Jul 500 $ 4,760 $31,300 $ $12,000 Bal. Bal. Bal Bal. 840 Repair Supplies Expense $2,700 $3,450 1-Jul 31-Jul $ 6,150 Bal.

Req 5 Adjusting entries Calculation Debit Credit Date Account -16,800/5*1/12 31-Jul Depreciation Expense- Tools 280 Accumulated Depreciation- Tools 280 31-Jul Repair Supplies Expense 4,600*3/4 3,450 Repair Supplies 3,450 31-Jul Rent Expense 4,000 Accounts Payable 4,000 31-Jul Unearned Revenue 500 4,300-3,800 Revenue 500

Req 4 Req 6 MT Repairs Opening TB Unadjusted TB Adjusted TB Debit Debit Credit Credit Debit Credit Account Names Cash 6,400 3,400 3,400 Repair Supplies 4,600 3,000 1,150 Tools 16,800 16,800 16,800 Accumulated Depreciation- Tools 560 560 840 Accounts Payable 5,000 3,200 1,000 Unearned Revenue 3,800 700 4,300 Melanie Thornhill, Capital 9,160 9,160 9,160 Melanie Thornhill, Withdrawals 5,000 5,000 25,800 Revenue 30,800 31,300 Depreciation Expense- Tools 560 560 840 Wages Expense 1,960 4,760 4,760 Rent Expense 8,000 12,000 8,000 Repair Supplies Expense 6,150 2,700 2,700 Totals 39,420 39,420 45,820 45,820 50,100 50,100

MT Repairs Income Statement For the three months ended July 31, 2017 31,300 Revenue Expenses Depreciation Expense- Tools 840 Wages Expense 4,760 Rent Expense 12,000 Repair Supplies Expense 6,150 Total Expenses 23,750 Net Income 7,550 Statement of Changes in Equity For the three months ended July 31, 2017 Capital, May 1, 2017 Add: Investments 9,160 7,550 Net Income Less: Withdrawals (5,000) Capital, July 31, 2017 11,710

MT Repairs Balance Sheet As of July 31, 2017 Liabilities & Owners Equity Current Liabilities 3,400 Accounts Payable 1,150 Unearned Revenue 4,550 Total Current Liabilities Assets Current Assets Cash 5,000 Repair Supplies 3,800 Total Current Assets 8,800 Owners Equity Fixed Assets 16,800 Capital (840) Tools 11,710 Accumulated Depreciation- Tools Total Fixed Assets 15,960 20,510 Total Liabilities & Owners Equity Total Assets 20,510