Question

2 MIX Inc. is a service business incorporated on January, 2018 to provide personal training for athletes aspiring to play college sports. The following is a simplified list of accounts and amounts reported in its accounting records at the beginning of its second quarter of operations on April 1, 2018(the amounts are in thousands of dollars). The accounts have normal debit or credit balances. Accounts Payable $ 600 Notes Payable (long-term) $ 200 Accounts Receivable 300 Notes Payable (short-term) 500 Accumulated Depreciation 900 Prepaid Rent 100 Cash 300 Rent Expense 400 Common Stock 200 Retained Earnings 1,500 Deferred Revenue 200 Salaries and Wages Expense 2,200 Depreciation Expense 300 Service Revenue 6,200 Equipment 3,200 Supplies 500 Income Tax Expense 300 Supplies Expense 200 Interest Revenue 100 Travel Expense 2,600 After the first quarter, MIX had the following transactions: a) Issued additional shares of common stock for $50 on April 15. b) Purchased equipment for $250 cash on May 1 c) Received $400 cash for future services on May 25. d) Borrowed $220 cash on July 1, 2018, signing a six-month note payable. e) Paid two-year insurance premium on equipment in the amount of $600 on July 1, 2018, and debited in full to Prepaid Insurance on that date. Coverage began on July 1. f) Purchased software on July 4, $30 cash. g) Purchased supplies on July 5 on account for future use, $7. h) Recorded revenues on December 6 of $550, including $80 on credit and $470 received in cash. i) Recognized salaries and wages expense on December 7 of $30; paid in cash. j) Collected accounts receivable on December 8, $90. k) Paid accounts payable on December 9, $100. Data for adjusting journal entries on December 31: 1) Amortization for 2018, $5. m) A physical count of supplies on December 31 showed Supplies costing $300 were still on hand. n) Depreciation for 2018, $40. 0) Accrued interest of $5 on notes payable. p) Salaries and wages incurred but not yet paid or recorded, $30. 9) Service provided but to be collected in January 2019, $45 r) Income tax expense for 2018 was $4 and will be paid in 2019. s) Six months of insurance on equipment has been used.

i want question l to s . the ones for adjusting journal entries on december 31

Answer 1

journal entries and their explanation L -S

No.	account	debit	credit
l	Amortization	$5
	Accumulated amortization		$5
m	supplies expense	207$		500+7purchased= 507 used = 507-300 =207 will be expensed
	supplies		207$
n	depreciation	40$		depreciation expense booked
	accumulated depreciation		40$
o	interest expense	5		expensed
	interest payable		5	interest expense accrued not paid is liability
p	salaries and wages expense	$30		salary expense booked
	salaries and wages payable		$30	salary payable is a liability
q	Account receivable	$45		services on account
	service revenue		$45
r	income tax expense	4$		income tax expense
	income tax payable		4$	not yet paid-liability
s	insurance expense	150$		600/24 months * 6months expired July to December
	prepaid insurance		150$	so expense 150$