JORUNAL | |||
Date | Particulars | Debit | Credit |
1 | Supplies expense | 2970 | |
Supplies | 2970 | ||
(Being expense recorded) | |||
2 | Insurance expense | 2933 | |
Prepaid insurance | 2933 | ||
(3200*11/12 insurance expired) | |||
3 | Deferred revenue | 1800 | |
Revenue | 1800 | ||
(revenue recorded) | |||
4 | Depreciation | 1333 | |
Accumulated depreciation | 1333 | ||
(24000/12*8/12) | |||
5 | Interest expense | 400 | |
Interest payable | 400 | ||
(Being interest recognised) | |||
6 | Unbilled revenue | 2000 | |
Revenue | 2000 | ||
(Being unbilled revenue recorded) |
Date | Particulars | Debit | Credit |
7 | Rent expense | 1000 | |
Prepaid rent | 1000 | ||
(Being rent recognised for 1 month) | |||
8 | Salary expense | 3500 | |
Salary payable | 3500 | ||
(Being expense recorded) | |||
9 | Unbilled revenue | 1500 | |
Revenue | 1500 | ||
(Being unbilled revenue recorded) | |||
10 | Utility expense | 895 | |
Utility expense payable | 895 | ||
(Being expense recorded) |
P3.7A (LO 2, 3) AP Melody Lane Co. provides music lessons to many clients across the...
Nanhoe Co, provides music lessons to many clients across the city. The following information is available to be used in recording annual adjusting entries at the company's September 30, 2021. year end: 1 On October 1, 2020, the company had a balance of $1.990 in its supplies account. Additional supplies were purchased during the year totalling $1,790. The supplies inventory on September 30, 2021, amounts to $800. 2. On November 1, 2020, Ivanhoe purchased a one-year insurance policy for $3,120....
Problem 2 (39 points) Funky Music provides music lessons to student musicians. Adjusting entries are performed on a monthly basis but performs closing entries annually on December 31. An unadjusted trial balance dated December 31, 2015, is provided below. (Bear in mind that adjusting entries already have been made for the first eleven months of 2015, but not for December.) Data for adjustments: Lessons revenue earned but not yet recorded as of December 31, 2015, amounts to $8,210 2. Records...
Kellers Music was organized in January of 2017. The company offers music lessons to people of all ages and skill level. The company charges an annual $50 registration fee and $100 monthly due per student for music lessons. You have been hired by the company to install and maintain the company’s accounting system. The owner of Kellers Music would like see the following statements at the end of each month: Income Statement Balance Sheet Retained Earnings Statement The following transactions...
Melody Lane Music Company was started by John Ross early in 2013. Initial capital was acquired by issuing shares of common stock to various investors and by obtaining a bank loan. The company operates a retail store that sells records, tapes, and compact discs. Business was so good during the first year of operations that John is considering opening a second store on the other side of town. The funds necessary for expansion will come from a new bank loan....
Problem 3-10 Balance sheet preparation [LO3-2, 3-3] Melody Lane Music Company was started by John Ross early in 2018. Initial capital was acquired by issuing shares of common stock to various investors and by obtaining a bank loan. The company operates a retail store that sells records, tapes, and compact discs. Business was so good during the first year of operations that John is considering opening a second store on the other side of town. The funds necessary for expansion...
Problem 3-10 Balance sheet preparation [LO3-2, 3-3] Melody Lane Music Company was started by John Ross early in 2018. Initial capital was acquired by issuing shares of common stock to various investors and by obtaining a bank loan. The company operates a retail store that sells records, tapes, and compact discs. Business was so good during the first year of operations that John is considering opening a second store on the other side of town. The funds necessary for expansion...
P2.6B (LO 2, 3, 4) AP Kiersted Financial Services was formed on November 1, 2021. During the month of November, the following events and transactions occurred: Nov. 1 Haakon Kiersted, the owner, invested $35,000 cash in the company. He also invested equipment that had originally cost Haakon $25,000 but was currently worth $12.000. 2 Hired one employee to work in the office for a monthly salary of $2,825. 3 4 5 6 7 Pure Signed a three-year contract to lease...
Grasshopper Lawn Service provides general lawn maintenance to customers. The company’s fiscal year-end is December 31. Information necessary to prepare the year-end adjusting entries appears below. On October 1, 2021, Grasshopper lent $110,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022. On November 1, 2021, the company paid its landlord $22,500 representing rent for the months of November through January. Prepaid Rent was debited for the entire amount. On...
P2.6B (LO 2, 3, 4) AP Kiersted Financial Services was formed on November 1, 2021. During the month of November, the following events and transactions occurred: Nov. 1 Haakon Kiersted, the owner, invested $35,000 cash in the company. He also invested equipment that had originally cost Haakon $25,000 but was currently worth $12.000. 2 Hired one employee to work in the office for a monthly salary of $2,825. 4 5 6 7 16 20 26 Signed a three-year contract to...
P2.6B (LO 2, 3, 4) AP Kiersted Financial Services was formed on November 1, 2021. During the month of November, the following events and transactions occurred: Nov. 1 Haakon Kiersted, the owner, invested $35,000 cash in the company. He also invested equipment that had originally cost Haakon $25,000 but was currently worth $12,000. 2 Hired one employee to work in the office for a monthly salary of $2,825. 3 5 6 7 16 20 26 Signed a three-year contract to...