Question

Record the journal entries for these transactions during 2020. Beginning balance for equipment is 188,700. Prepaid rent beginning balance is 20,800. Common stock beginning balance is 199,000.

34 D E F G H K L M N 4 x fx =E_3 А B с 1 Entry Company A's transactions during 2020: 2 #1 On Jan 1, Company A pays cash of $1,605 towards their Accounts Payable. 3 #2 On Jan 15, Company A purchases $4,210 in supplies, on account. #3 On Feb 15, the company purchases 149 units of inventory for $1,070 each, half with accounts payable and the rest with cash. 5 Note: Company Ahad 1 unit of inventory on hand at the beginning of the year. 6 #4 On Apr 15, Company A sells all but 5 units of inventory at a price of $2,600 each. Half are sold on account, the rest for cash. 7 #S On Apr 30, you record the use of 4 month's rent, which is the beginning balance in your prepaid rent account 8 #6 "On May 1, you pre-pay the next 12 months of rent. Your rent has increased $1,000 per month over your initial monthly payment 9 #7 On Dec 1, you collect $131,950 from customers related to previous sales. 10 #8 On Dec 31, you declare and pay dividends equal to 40% of the outstanding common stock value. 11 12 Company A's adjusting entries at December 31, 2020 13 #1 A count of supplies shows you have $2,950 supplies on hand at the end of the year. 14 #A2 Perform an adjusting entry to account for any additional rent from May until year end. 15 HAB Record depreciation on equipment, based on the original value. The expected life is 10 years, with no salvage value 16 #A4 Record tax expense of $12,939, to be paid next April. 17 *** Based on the above transactions, complete your Income Statement and Balance Sheet. 18 19 Once the financial statements are prepared, perform closing entries. 20 #C1 Close all revenue accounts to retained earnings. 21 #C2 Close all expense accounts to retained earnings 22 #C3 Close all dividend accounts to retained earnings 23

Answer 1

Journal Particularis Date Debit Credit Jani Accounts lavalle All 1605 Cash 1605 Jan 2: 4210 dicemua de Ale 4210 febis. 159430 Supplies All all. To Accounts layable Purchases, Akle (149x 1070) To Cash Alc. To Accounts Payalele Ale . cash All Du (582600) Accounts Receivalele Ali Dr. To Sales Revenue Ale. 79715 79715 Speilis 6500 6500 We 13000 9.800 Jos oo April 30. Reut Expense Alar To Puspaid Rent & de Mey Peepaid Reut Alek 74400 to Cash Ale. 74400 Decl. 131950 Cash Alcall. To Accounts Revivalele Alc. 131950 Deus. 79600 Dividend Alide To Cash Ale. 79600

Adjusting Enteries 1260 1260 49600 49600 © Qupplie Expenske. All To supplies Ala ☺lsuspored Reset Expense Acan To keepaid Rent Ale slepecsation Expensie Alcon To Accumulated spuiciations 188 70 3 18870

4 Tox Expense 12939 12939 Expense Alle x Payalle. Ale To Tax