Question

Need assistance with posting adjusting entries and an adjusted trial balance for the following information.

From the June 18 transaction Bella Computers purchased $1,200.00 of office supplies on credit. At the end of the month there are $500.00 of supplies remaining.

From the June 2 transaction Bella Computers purchased office furniture and fixtures at a cost of $20,000, estimated to have a 10 year useful life, with no residual value. Depreciation is recorded using the straight line method (cost-residual value/estimated life).

From the June 4 transaction Bella Computers purchased machinery at a cost of $100,000, estimated to have a useful life of 7 years, with a salvage value of $9,000. Depreciation is recorded using the straight line method (cost-residual value/estimated life).

Bella Computers paid a 1 year prepaid lease for the sum of $1,000 per month. They make an adjustment at the end of the month to record one month’s lease expiration.

From the June 10 transaction Bella Computers paid the premiums on June 10 for a two year policy that officially begins coverage on July 1 and will continue for 2 years. The prepaid premium for the entire 2 year policy is $3,600.00. They make an adjustment at the end of the month to record one month’s insurance coverage expiration.

On June 30 Bella Computers owed the secretary / receptionist for 5 days of fees as an independent contractor. I have the general ledger, journal and unadjusted trial balance completed. Thanks so much!

Answer 1

Please make a note that finacial year period is not mentioned in the problem.

So we have considered the period of June to May for year calculation.

Bella Computers
Journal Entries in the Books of Bella Computers for the Period of 01 June to 31 May
Date	Particulars/Account Name	Debit	Credit
June 18	Office Supplies Stock A/c	$1,200
	To Sundry Creditors A/c		$1,200
Being Office Supplies Purchased on Credit
June 30	Office Supplies Exp A/c	$700
	To Office Supplies Stock A/c		$700
Being Consumption posted as on 30/06/2018
June 2	Furniture & Fixture A/c	$20,000
	To Sundry Creditors A/c		$20,000
Being Furniture & Fixture purchased
June 4	Machinery A/c	$1,00,000
	To Sundry Creditors A/c		$1,00,000
Being Machinery Purchased
	Prepaid Lease A/c	$12,000
	To Bank / OD A/c		$12,000
Being 1 Year Lease Paid
June 10	Prepaid Premium A/c	$3,600
	To Bank OD /A/c		$3,600
Being 2 Years Policy Premium paid Starts from July 01
June 30	Lease Exp A/c	$1,000
	To Prepaid Lease A/c		$1,000
Being Lease Expenses booked for June
July 31	Lease Exp A/c	$1,000
	Policy Premium A/c	$150
	To Prepaid Lease A/c		$1,000
	To Prepaid Premium A/c		$150
Being Lease & Policy Premium Expenses booked for July
Aug 31	Lease Exp A/c	$1,000
	Policy Premium A/c	$150
	To Prepaid Lease A/c		$1,000
	To Prepaid Premium A/c		$150
Being Lease & Policy Premium Expenses booked for Aug
Sept 30	Lease Exp A/c	$1,000
	Policy Premium A/c	$150
	To Prepaid Lease A/c		$1,000
	To Prepaid Premium A/c		$150
Being Lease & Policy Premium Expenses booked for Sept
Oct 31	Lease Exp A/c	$1,000
	Policy Premium A/c	$150
	To Prepaid Lease A/c		$1,000
	To Prepaid Premium A/c		$150
Being Lease & Policy Premium Expenses booked for Oct
Nov 30	Lease Exp A/c	$1,000
	Policy Premium A/c	$150
	To Prepaid Lease A/c		$1,000
	To Prepaid Premium A/c		$150
Being Lease & Policy Premium Expenses booked for Nov
Dec 31	Lease Exp A/c	$1,000
	Policy Premium A/c	$150
	To Prepaid Lease A/c		$1,000
	To Prepaid Premium A/c		$150
Being Lease & Policy Premium Expenses booked for Dec
Jan 31	Lease Exp A/c	$1,000
	Policy Premium A/c	$150
	To Prepaid Lease A/c		$1,000
	To Prepaid Premium A/c		$150
Being Lease & Policy Premium Expenses booked for Jan
Feb 28	Lease Exp A/c	$1,000
	Policy Premium A/c	$150
	To Prepaid Lease A/c		$1,000
	To Prepaid Premium A/c		$150
Being Lease & Policy Premium Expenses booked for Feb
Mar 31	Lease Exp A/c	$1,000
	Policy Premium A/c	$150
	To Prepaid Lease A/c		$1,000
	To Prepaid Premium A/c		$150
Being Lease & Policy Premium Expenses booked for Mar
Apr 30	Lease Exp A/c	$1,000
	Policy Premium A/c	$150
	To Prepaid Lease A/c		$1,000
	To Prepaid Premium A/c		$150
Being Lease & Policy Premium Expenses booked for April
May 31	Lease Exp A/c	$1,000
	Policy Premium A/c	$150
	To Prepaid Lease A/c		$1,000
	To Prepaid Premium A/c		$150
Being Lease & Policy Premium Expenses booked for May
May 31	Depriciation A/c	$15,000
	To Furniture & Fixture A/c		$2,000
	To Machinery A/c		$13,000
One Year depriciation booked as on end of year (Furniture Fixture = $20000/10) & (Machinery ($100000-$9000/7)
	Journal Entries Total:-	$1,66,150	$1,66,150

Bella Computers Trial Balance As on 31 May
A/c Group	Name of Account	Debit	Credit
Expenses	Depriciation A/c	$15,000
Expenses	Lease Exp A/c	$12,000
Expenses	Office Supplies Exp A/c	$700
Expenses	Policy Premium A/c	$1,650
Assets	Furniture & Fixture A/c	$18,000
Assets	Machinery A/c	$87,000
Assets	Office Supplies Stock A/c	$500
Assets	Prepaid Premium A/c	$1,950
Liabilities	Bank / OD A/c		$15,600
Liabilities	Sundry Creditors A/c		$1,21,200
	Total :-	$1,36,800	$1,36,800