Question

ired tasks are as follows n the designated worksheet, prepare in journal entry form the adjusting journal entries for the following items. (Round all numbers to the nearest dollar) a. Computers R Us took out a 9 month, 4.25, $17,000 note on August 1, 2019 with b. On October 1, 2019, Computers R Us rented some storage space at a rate of c. Computers R Us purchased $4,780 of office supplies during the year and the interest and principal to be paid on maturity $450 per month. On that date Computers R Us recorded Rent Expense for six months rent paid in advance set office supplies account was increased. A count of the supplies on hand December 31, 2019, indicates a balance of $485 $16,500 of store supplies were purchased during the year and were immediately expensed. A count of the store supplies on hand December 31, 2019, indicates a balance of $1,275 On June 1, 2019 an 18-month insurance policy was purchased for $9,000 On December 1, 2019, Computers R Us collected 32.000 for consulting services to be performed from December 1, 2019 to February 28, 2020. The company credited the revenue account when paid d. f. n October 1, 2019, Computers R Us issued a 5-month note receivable to erams Inc. at an annual interest rate of 5%. Principle and interest will be paid at the end of the 5-months. The note was recorded in Notes Receivable and is the only note outstanding h. The company rented idle office space to Bytes and Bits on June 1, 2019, at a rate of $1500 per month. On this date Computers R Us credited Unearned Rent Revenue for one year of rent received in advance Computers R Us is open seven days a week and has a daily payroll of $5,430 Employees are paid every Friday, December 31 is a Monday, 40% of the payroll is for office employees, 60% of payroll is for sales employees Depreciation for store equipment is based on the following: i. Straight Line Depreciation Store equipment-Assets were held for the entire year, Residual Value $8,200; Service life is estimated to be 6 years Depreciation for office equipment is based on the following: Double-Declining Method Office equipment- Assets were purchased July 1: Residual Value $4,000; Service life is estimated to be 4 yeans I. At 12/31/2019, based on the aging method, Computers R Us determines that uncollectible accounts are $13,850 m. Utilities expenses of $3,700 remained unpaid, 40% of the utilities expense is for ice and 60% of utilities expense is for the store

Unadjusted				Adjusted
Account Title	Trial Balance		Adjustments		Trial Balance
	DR	CR	DR	CR	DR	CR
Cash	67,000	-
Accounts Receivable	530,000	-
Allowance for Doubtful Accounts		8,800
Interest Receivable	-
Merchandise Inventory	242,500	-
Prepaid Insurance	9,000	-
Prepaid Rent	-
Store Supplies	-	-
Office Supplies	4,780	-
Note Receivable	2,500
Store Equipment	110,000	-
Accumulated Depreciation - Store Equipment	-	36,000
Office Equipment	56,000	-
Accumulated Depreciation - Office Equipment	-	-
Accounts Payable	-	48,000
Salaries Payable	-	-
Interest Payable	-	-
Utilities Payable
Unearned Consulting Revenue	-
Unearned Rent Revenue		18,000
Note Payable	-	17,000
Common Stock	-	300,000
Retained Earnings	-	263,450
Dividends	12,000	-
Sales Revenue	-	970,000
Consulting Revenue	-	32,000
Rent Revenue
Interest Revenue
Sales Returns and Allowances	15,800	-
Sales Discounts	11,000	-
Cost of Goods Sold	350,000	-
Sales Salaries Expense	170,000
Office Salaries Expense	80,000	-
Miscellaneous Administrative Expense	4,500	-
Miscellaneous Selling Expense	8,970	-
Depreciation Expense - Store Equipment	-	-
Depreciation Expense - Office Equipment	-	-
Store Supplies Expense	16,500	-
Office Supplies Expense	-	-
Rent Expense	2,700	-
Insurance Expense	-	-
Interest Expense	-	-
Bad Debt Expense	-	-
Utilities Expense-Store
Utilities Expense-Office
	1,693,250	1,693,250

1.) Figure out the Closing Entries

Answer 1

Closing Enteries Date Particulars 31.12.2019 Income Summary a/c Debit in $ Credit in $ Dr. 720947.7 To Sales Returns and Allowances To Sales Discounts To Cost of Goods Sold To Sales Salaries Expense To Office Salaries Expense To Miscellaneous Administrative Expense To Miscellaneous Selling Expense To Depreciation Expense Store Equipment To Depreciation Expense Office Equipment To Store Supplies Expense To Office Supplies Expense To Rent Expense To Insurance Expense To Interest Expense To Bad Debt Expense To Utilities Expense-Store To Utilities Expense-Office 15800 11000 350000 179774 86516 4500 8970 16967 14000 15225 4295 1350 3500 301 5050 2220 1480 (Expense accounts closed 31.12.2019 Sales Revenue a/c Consulting Revenue a/c Rent Revenue a/c Interest Revenue a/c Dr. Dr. Dr Dr. 970000 10667 10500 31.25 To Income Summa 991198 (Revnue accounts closed 31.12.2019 Income Summary a/c Dr. 270250 To Retained Earnings 270250 (Profit transferred 31.12.2019 Retained Earnings a/c Dr To Dividends 12000 (Dividend charged to retained earnings)