Question

How to do the adjust balance sheet

HOME INSERT PAGE LAYOUT FORMULASDATA REVEWVEW ACD-I Copy Formalting Table- During Jasuary, the first moath of operations, the following transactions occurred: Datc Event Amount Borrowed cash from the bank for operating expenses. The note charges simple intcrest and is to be paid 1-Jan back in 5 years 3-Jan Paid for 12 months rent on office space 4-Jan Purchased office furnitare. 8-Jan Paid for utilitics 10-Jam Received eash in advance from Stanley Ine. for work to be perfoenmed over the next 12 months. 14-Jan Performed services for various customers for cash and on account 15-Jan Paid the bill for supplics purchased previcasly 26-Jan Collected payments for amounts previously billed 8-Jam Purchased additional office supplics on account 29-Jan Paid salaries to employees for 1 week 31-Jan Dividends were declared and paid 30,000 loan amount 0.04 interest n 11,820 10,89 11,650 cash 11.29 8.950 4,650 t the end of January, the following additional information is available to help determine what adjustments are needed 1-Jan Supplics were counted at month end 31-Jan One moeth of the services for Stanley Inc. has been performed (see above). 31-Jan One mooth of interest has accrued on the note payable for the bank loan 31-Jan Additional work for custoeners has been perforsed duing the last week of January but hasn't been billed 31-Jan One moeth of the prepaid rent has been used up 31-Jan Depreciation expense needs to be recognized for the computer equipment and for the office furnituare 31-Jan Salaries are paid every Friday (for a 5 day work week). Jamaary 31. 2018 was a Thuanday 7860 supplies on hand month end 65 comp equip 135 of into IE ADJE· CLOSING JE worksheet tatement, vorkst

Answer 1

	Adjusting Journal Entries to be recorded on 31 Jan
Date	Account Titles and Explanation	Debit	Credit
31-Jan	Supplies Expenses	$12,385
	Supplies		$12,385
	(To record supplies used in the month)
31-Jan	Unearned Service Revenue	$1,100
	Service Revenue		$1,100
	(To record revenue for the service performed)
	(13200/12 x 1 month = 1100)
31-Jan	Interest expense	$100
	Interest payable		$100
	(To record interest on bank loan for I month)
	(30000 x 4% x 1/12 = $100)
31-Jan	Accounts Receivable	$6,500
	Service Revenue		$6,500
	(To record work performed not yet billed)
31-Jan	Rent Expenses	$985
	Prepaid Rent		$985
	(To record rent expense for Jan)
	($11820/12 months x 1 month = $985)
31-Dec	Depreciation expense-Computer equipment	$165
	Depreciation expense-Office Furniture	$135
	Accumulated Depreciation-Computer Equip.		$165
	Accumulated Depreciation-Office Furniture		$135
	(To record depreciation for 1 month)
31-Dec	Salaries Expense	$4,650
	Salaries payable		$4,650
	(To record salaries due for last week)
	Note:
	Supplies used
	Paid bill for supplies purchased previously	$11,295
	Purchased additional office supplies	$8,950
	Total Supplies	$20,245
	Less: Supplies on hand month end	$7,860
	Supplies used	$12,385