Question

Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm’s worksheet showed the following adjustments data: (a) supplies used, $2,140; (b) expired rent, $11,000; and (c) depreciation on office equipment, $4,380. The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below: REVENUE AND EXPENSE ACCOUNTS 401 Fees Income $ 110,000 Cr. 511 Depr. Expense—Office Equipment 4,380 Dr. 514 Rent Expense 11,000 Dr. 517 Salaries Expense 47,500 Dr. 520 Supplies Expense 2,140 Dr. 523 Telephone Expense 1,150 Dr. 526 Travel Expense 10,190 Dr. 529 Utilities Expense 1,050 Dr. DRAWING ACCOUNT 302 Gloria Johnson, Drawing 9,000 Dr. Required: Record the adjusting entries in the general journal (transactions 1-3). Record the closing entries in the general journal (transactions 4-7).

Answer 1

Transaction Credit Date 31-Jan-19 Debit S 2.140 Account titles and Explanation Supplies Expense Supplies (Being Supplies Expense recorded) $ 2.140 31-Jan-19 $ 11,000 Rent Expenses Prepaid Rent (Being rent expense recorded) S 11.000 31-Jan-19 $ 4,380 Depreciation Expense - Office Equipment Accumulated Depreciation - Office Equipment Being Depreciation Expense recorded) $ 4,380

Transaction | Credit Date 31-Jan-19 Debit $ 110,000 Account titles and Explanation Sales Revenue Income Summary (To close Sales Revenue to income summery Recorded) $ 110,000 31-Jan-19 $ 77,410 Income Summary Depreciation Expense - Office Equipment Rent expense Salaries Expense Supplies Expense Telephone Expense Travel Expense Utilities Expense (To close expenses accounts recorded) $ 4,380 $ 11,000 $ 47,500 $ 2.140 $ 1.150 $ 10,190 $ 1,050 31-Jan-19 S 32,590 Income Summary Gloria Johnson, Capital (To close Net Income transferred to Capital account recorded) S 32.590 31-Jan-19 $ 9,000 Gloria Johnson, Capital Gloria Johnson, Drawings Being withdrawels closed to transferring Capital account recoorded) $ 9,000