Question

2. The information below pertains to the Javelina Market's 2020 information. Javelina Market accounts for transactions on the cash basis during the year. At year, the accountant has to adjust the books to the accrual basis. Trial Balance 31-Jul-20 Debit Credit Cash 20,250 Account Receivable, 7/31/19 5,300 Inventory, 7/31/19 20,000 Equipment 35,000 Accumulated Depr, 7/31/19 9,000 Account Payable, 7/31/19 4,800 Payroll Tay Withheld 850 Javelina, Withdrawals 24,000 Javelina, Capital 7/31/19 35,400 Sales 187,800 Cost of Goods Sold 82,700 Salaries 29,500 Payroll Taxes 2,900 Rent 8,400 Miscellaneous Expense 3.900 Insurance 2.400 Utilities 3,500 Totals 237,850 237,850 Additional Information: 1. Amounts due from customers total $9,000 at 7/31/20 2. A review of the receivables shows that an allowance of doubtful accounts of $900 should be provided 3 Accounts Payable at 7/31/20 should be $6,000. (Make adjustment against Inventory) 4 Based on a physical count, Inventory is $21.500. (Don't forget about previous entry 5. On July 1, Javelina paid one year's rent in advance in the amount of $4.200 and recorded the entire amount as Rent Expense 6. On July 1, Javelina paid $1,200 on Insurance for the upcoming fiscal year. (Aug 1-July 31, 2021) 7. Depreciation for the year ended 7/31/2020 was $4,750. 8 Accrued expenses at July 31, 2020 are: Salaries of $510 and Utilities of S600 Prepare the required adjusting entries. Focus U А +3 ge 3 * 4 5 6 7 8

Answer 1

Javelina Market
Journal entry
	Date	Particulars	Dr.($)	Cr.($)
1	Dec-31	Accounts Receivable A/c Dr.			3,700
			To	Sales A/c		3,700
2	Dec-31	Provision for doubtful debts A/c Dr.	900
			To	Accounts Receivable A/c		900
3	Dec-31	Inventory A/c Dr.	1,200
			To	Accounts Payable A/c		1,200
4	Dec-31	Inventory A/c Dr.	300
			To	Inventory Adjustment Account A/c		300
5	Dec-31	Prepaid Rent A/c Dr.	3,850
			To	Rent A/c		3,850
6	Dec-31	Prepaid Insurance A/c Dr.	1,200
			To	Insurance A/c		1,200
7	Dec-31	Depreciation-Equipment A/c Dr.	4,750
			To	Accumulated Depreciation-Equipment A/c		4,750
8	Dec-31	Salaries A/c Dr.	510
		Utilitites A/c Dr.	600
			To	Salaries Payable A/c		510
			To	Utilities Payable A/c		600
	Note:
	Rent paid in advance for 1 year = $4200 i.e., 4200/12 = $350 p.m.
	Prepaid rent for 11 months = 350*11 = $3850