Question

Lab 7 Transactions to analyze and journalize In this lab we will continue with analyzing and journalizing transactions and now we will be using adjusting entries. Below is a list with a few transactions. Use the Journal page provided in the lab folder to journalize these transactions. Use the Chart of Accounts provided in the lab folder to determine the account names you will use. You do not need to include a description with your journal entry. When you have completed these Journal Entries, save the file and upload it using the link. Date Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Transactions Sent a bill to a client because you completed a service for them. Nothing has been paid as of today and all contracted work is complete. $50,000 Checked the office supply inventory and find that $5,000 in office supplies have been used up Employee salaries will be paid on payday next week. Salaries owed to employees are $50,00 On July 1, a client had paid cash upfront to rent some office space from you. On July 1 you recorded the transaction as a debit to Cash and a credit to Unearned Revenue. Now the client has been using the office space for the last 3 months. The rent is $2,000 per month for a total of $6,000 earned as of Sept. 30 You have a note payable with the bank and it accrues interest at 6% which is paid once per year. This interest will be paid Dec. 31 but you want to match this month's interest expense to the month of September. In September the interest expense is $1.500 You send a bill to a client for September rent in the amount of $3,000 You received the Utility bill and will pay it October 15. The bill is $5,000 You receive the property tax assessment and bill form the county. You will pay the tax expense in January next year. The taxes total $45,000 You completed a service for a client. The client has already paid you for the service several months ago and you recorded it as Unearned Revenue. Now $43,000 worth of service are complete You need to depreciate the furniture the depreciation amount is $10,000 You need to depreciate the equipment the depreciation amount is $2,500 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30 Sept 30

Answer 1

1. Journal Entries -

Credit Journal Entries Date Accounts Title Debit Sept 30 Accounts Receivable $ 50,000 Service Revenue (Being Service provided and billed) $ 50,000 $ 5,000 Sept 30 Supplies Expense Supplies (Being Supplies utilised) $ 5,000 Sept 30 Salaries Expense $ 5,000 Salaries Payable (Being Salaries Expense incurred) $ 5,000 $ 6,000 Sept 30 Unearned Revenue Rent Revenue (Being rent revenue earned) $ 6,000 Sept 30 Interest Expense $ 1,500 Interest Payable (Being Interest Expenses incurred) $ 1,500 Sept 30 Accounts Receivable $ 3,000 Rent revenue (Being Rent provided and billed) $ 3,000 Sept 30 Utiities Expenses $ 5,000 Utilities Payable (Being Utilities Expense accrued) $ 5,000 Sept 30 Property Tax Expenses $ 45,000 Property Tax Payable (Being Property Tax Expense incurred) $ 45,000 $ 43,000 Sept 30 Unearned Revenue Service Revenue (Being Revenue earned) $ 43,000 Sept 30 Depreciation Expense - Furniture $ 10,000 Accumulated Depreciation - Furniture (Being Depreciation Expense incurred) $ 10,000 Sept 30 Depreciation Expense - Equipment $ 2,500 Accumulated Depreciation - Equipment (Being Depreciation Expense incurred) $ 2,500