Question

Additional Information Equipment: The $48,000.00 beginning balance in the Equipment account relates to the mowing equipment which was purchased on January 2, 2020. For information related to this mowing equipment see Page 70 in the Solid Footing text (PDF 07 - Intro to Adjusting Entries). This equipment continues to be used and should be depreciated for the month of July. The following information relates to the new equipment which was purchased on July 1, 2021: → The new equipment was placed into service on July 1, 2021 and should be depreciated for the month of July. → The estimated useful life of the new equipment is 5 years. → At the end of 5 years, the new equipment will have no future value and will be scrapped. → The new equipment will be depreciated using the straight-line method. Supplies: At the end of July there are $24,000.00 supplies on-hand. Mowing Service at the University: The monthly mowing service was provided to the university per the contract signed on April 1, 2021. For information on the contract with the university and the related advance payment, see Pages 95 and 98 in the Solid Footing text (PDF 08 - Adjusting Entries Continued). Wages Due the Employees: The last wage payment was made to the employees on July 28, 2021. The employees worked on July 29, 30, and 31. For these three days of work the employees earned $3,525.00 of wages. These three days of wages will be paid to the workers during the first week of August. Bank Loan: The interest on the loan from 1st Bank will be paid every three months. The first interest payment to the bank will be made on September 30, 2021. Lenny's calls the bank on July 31 and the bank indicates that the interest on the loan for July is $960.00.
fill in the areas that say 0.00 with the information give please !

Answer 1

Service revenue to be Accounted on accrual basis for the month of july amounts to = $38480

Revenue

5130

4200

5350

3900

19900

38480

Reasons for not recording/recording as revenue in July :

July 15 - It is earned in May so it would have been recorded in May

July 20 - It is earned in June so it would have been recorded in June

July 23- It is not yet earned, it is advance for services to be provided

July 25 - Amount earned is $5350 so we have to record this but not what is received

July 31 - Amount earned is $19900 so we have to record this in the current month even though the amount will be received in next month

Wage Expenses: $29525

Wages

5800

7000

7100

6100

3525 - This Amount is incurred so we have to include in July month even though payment is made later

29525

Depreciation Expense :

Information is insufficient about the machine which is purchased in January

For equipment purchased in july

Depreciation = (44700/60months)*1 month = Rs.745

But total depreciation can be calculated when information regarding the old machine is also provided

Supplies Consumed: $1020

The worth of the supplies consumed in July month = $1020

Given Supplies worth $22750 will be consumed in the next 12months, so it can be assumed that they are not consumed in the current month

Supplies on Hand - $24000, it is an asset and the opening value of supplies is missing in the given question

(Hope you will understand this, Please give your valuable feedback, if there is any query regarding this kindly mention in the comment section)