Question

5. Jan Haley owns and operates Haley’s Dry Cleaners. The following occurred during December:

a. On December 1, Haley prepaid rent on her store for December and January with $2,000 cash.

b. On December 1, Haley purchased insurance with cash in the amount of $2,400 that will last six months.

c. Haley paid $900 of her accounts payable balance.

d. Haley paid off all of her salaries payable balance.

e. Haley purchased supplies on account in the amount of $2,400.

f. Haley paid a salary to her assistant of $1,000 in cash for work done in the first two weeks of December.

g. Haley dry-cleaned clothes for customers on account in the amount of $8,000.

h. Haley collected $6,300 of her accounts receivable balance.

i. Haley paid tax of $750 in cash.

Required:

A. Prepare the journal entry for each transaction.

B. Prepare all necessary T-accounts. Numbers already under the accounts represent the prior balance in that account.

Figure 5.13 Opening T-Account Balances

Cash 5,000 Accounts Receivable 6,500 Prepaid Rent 0 Prepaid Insurance 0 Supplies 0 Accounts Payable 1,200 Salary Payable 1,000 Note Payable 4,000 Capital Stock 3,000 Retained Earnings 2,300 Sales Revenue 0 Supplies Expense Salary Expense 0 Rent Expense 0 Insurance Expense 0 Tax Expense 0

C. Prepare a trial balance dated 12/31/XX.

D. Make the following adjusting entries for the month of December and post them to the T-accounts:

j. Rent expense.

k. Insurance expense.

l. Haley owes her assistant $1,000 for work done during the last two weeks of December.

m. An inventory of supplies shows $400 in supplies remaining on December 31.

E. Prepare an adjusted trial balance dated 12/31/XX.

F. Prepare an income statement, statement of retained earnings, and balance sheet for the month ending December 31, 20XX.

Answer 1

Answer of all parts have been attached in Jpeg pics. Income Statement and Balance Sheet were prepared in simple format of better understanding.
Date Page Answer A Journal Entries y Date Particulars Debit 200 Credit af Dee I Prepaid Rent Cash 2007 Prepaid Insurance Cash 2,400 2400 C) Decal Account Payable 900 Telo Cash go d) Dec 31 Salary Payable test Cash 1,000 310 1,00 e) Dee 31 2,400 Supplies Cash 2,400 f Dec 31 Salary Lora Cash Cash 8.000 j Dec 31 8, ovo Sales Revenue W De 31 6,300 Cash 6,300 Accounts Receivable 750 g Dec 31 Tax Expense . 750 Cash

Answer B в T- Accounts Cash Dec to opening Balance 5000 Dell Prepaid Rent - Dec 31 Sale Revenue 8000 Dec! Prepaid Iusu. Dec3l Account Reciable 6300 Dec 31 Account Payable Dec 31 Salary payable ron 1e3! supplies 2000 2400 900 2400 520 Dec 31 salary Dec 31 Tax Expense Dec 31 Balance 9 Dec 1 Balance Bif Account Receivable 650 Cash Dec 31 Belance of Dec 31 By 6300 200 Dect To Cash Prepaid Rent 2000 I Dee 31 By Babue 95 2000. Prepaid Insurance 2400 Balance &f 2400 Dec 1 Cash Dee 31 Du 31 Cash Dec 31 Balance af Accounts Payable Deel 300 Balance bf 1200 Dee 31 Cash loro Balary Parable love been Balance of Sakary Expense Balance Co in Du 31 Cash. 1000 Dei 31

classmate Date Page supplies 24001 Dec 31 Dec 31 To Cash , ( Balance Cf 2400 Tango Speeds Dec 3) To Cash Balance le 750 Sales Revenue Dec 31 to Balance of 8ooo / Dec 31 Bank Bow Auswerc) trial Balance Derit Trial Balance as on 31/12/80 Particulars Tr Credit Amount Amount Cash 8830 Account Receivable frepaid, Rent 2010 Prepaid Insurance 2,400 Accounts Payable adversus 3 Salary Payable 100 24000 tax expenses 750 Note Payable Retained Garning 17800 Salary Expense Supplies Sales Revenue 80000 4000 Capital stock 2300 17800

Date Page Answer DJ Adjustment Entries Rent Expenses 1000 j Dec 31 1,000 Prepaid Rent 4070 yoo ) Los Il Dec 31 Insurance Spense Prepaid Insurance & Dec 31 Salary Expense Salary Payable Inventory supplied TODD m) Dee 31 400 400 # h 750 Answer EJ Trial Balance after adjustment tax experises Cash 8850 Account Receivable 200 Prepaid Rent Rent expense IND Insurance Expense , 400 Prepaid Insurance 2000 Salary expense 2000 Salary Payable 1. 400 Supplies 2400 Notes Payable Retained earnings 2000 , Accounts Payable ஆசி 300 18600 18600 Inventor Count sales Revenue சில 40D 312 Capital Stock

Dale Page Ane EJ Income Statement 750 income sales Inventory (clatiny Tax Spenses Rent Spenses Insurance Salary expense 8 00 400 400 24110 20170 Supplies Retained Earning 2850 8400 Statement of Retained farings opening Balance as on idee Add profit during the periood Balance as on 31 Dec 2300 1850 405 415 0850 2000 400 1450 Balance Sheet Assets casts Acount Receivable. Prepaid Rent Prepaid gry wrance Inventory Total Equity and liablities Capital stock Retained Earning Tot Notes Payable Accounts Payable Total. 4250 40 sa Bono 300 1000 120 Salary Payable