Question

  

Record January transactions in the General Journal and post to the General Ledger.

• Record adjusting entries for January in the General Journal and post to the General Ledger

. • Prepare the adjusted trial balance as of January 31

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ansaction 1-Jan Performed car repair services and received cash at the time of sale, $5,670 2-Jan Paid for the car parts purchased on account last year, $1,005 4-Jan Paid wages and salaries for $3,420, part of which was accrued in December 10-Jan Paid the utility bill that was already accrued in December in utilities payable 16-Jan Collected cash from credit sales made last year, $2,800 20-Jan Purchased $6,200 of equipment, paid $3,100 cash and issued a note for $3,100 22-Jan Performed car repair services on account, $3,810 27-Jan Paid dividends to the company's owners, $620 January Adjusting Entries 31-Jan The estimated depreciation on building and equipment is $920 31-Jan One month of rent has expired, $950 The annual interest rate is 6% on all notes and paid quarterly. It was last paid on 31-Jan Dec 31 of the prior year. Round to the nearest dollar 31-Jan The supplies remaining at the end of the month was $580 31-Jan Accrued wages and salaries worked in January that will be paid 2-4, $1,920 31-Jan The estimated income taxes for the month is $780
Record January transactions in the General Journal and post to the General Ledger.

• Record adjusting entries for January in the General Journal and post to the General Ledger

. • Prepare the adjusted trial balance as of January 31

Answer 1

1. Journal entries:

Date	Particulars	Debit	Credit
1-Jan	Cash	$5,670
	Sales		5,670
	(Being cash has been received on sale of services)
2-Jan	Accounts payable	1,005
	Cash		1,005
	(Being cash paid on account of last year’s purchases)
4-Jan	Salaries and wages (Balancing figure)	680
	Salaries and wages payable	2,740
	Cash		3,420
	(Being cash has been paid for part of accrued December salaries)
10-Jan	Utilities payable	820
	Cash		820
	(Being Utilities accrued has been paid)
16-Jan	Cash	2,800
	Accounts receivable		2,800
	(Being Cash collected from accounts receivable)
20 Jan	Equipment	6,200
	Cash		3,100
	Notes payable		3,100
	(Being equipment purchased)
22-Jan	Accounts receivable	3,810
	Sales		3,810
	(Being car repair service has been provided)
27-Jan	Dividends	620
	Cash		620
	(Being dividend has been paid)

Adjusting entries:

Date	Particulars	Debit	Credit
31-Jan	Depreciation – Building and equipment	920
	Accumulated depreciation		920
	(Being accumulated depreciation entry has been recorded)
31-Jan	Rent	950
	Prepaid rent		950
	(Being rent of one month has been expired)
31-Jan	Interest on notes	182
	Interest payable		182
	(Interest accrued for one month on all notes =[ (35,400*6%*1/12 ) + (3,100*6%*1/12*10/31)] = 182
31-Jan	Supplies – consumption	330
	Supplies (910-580)		330
	(Being balance at the end of month is 580 , so remaining is consumption)
31-Jan	Salaries and wages	1,920
	Salaries and wages payable		1,920
	(Being Wages has been accrued)
31-Jan	Income tax	780
	Income tax payable		780
	(Being income tax payable for the month has been recorded)

2) Posting to general ledger

Cash A/C

Particulars	Amount	Particulars	Amount
To balance b/d	5,350	By Dividends	620
To accounts receivable	2,800	By Equipment	3,100
To sales	5,670	By utilities payable	820
		By salaries and wages	680
		By salaries and wages payable	2,740
		By accounts payable	1,005
		By balance c/d	4,855
Total	13,820	Total	13,820

Accounts receivable A/C

Particulars	Amount	Particulars	Amount
To balance b/d	2,970	By cash	2,800
To sales	3,810
		By balance c/d	3,980
Total	6,780	Total	6,780

Supplies A/C

Particulars	Amount	Particulars	Amount
To balance b/d	910	By consumption-supplies	330
		By balance c/d	580
Total	910	Total	910

Prepaid rent A/C

Particulars	Amount	Particulars	Amount
To balance b/d	950	By Rent	950
		By balance c/d	0
Total	950	Total	950

Equipment A/C

Particulars	Amount	Particulars	Amount
To balance b/d	122000
To Cash	3100
To notes payable	3100	By balance c/d	128200
Total	128200	Total	128200

Accumulated depreciation A/C

Particulars	Amount	Particulars	Amount
		By balance b/d	41,085
To balance c/d	42005	By depreciation	920
Total	42005	Total	42005

Accounts payable A/C

Particulars	Amount	Particulars	Amount
To cash	1,005	By balance b/d	6,595
To balance c/d	5,590
Total	6,595	Total	6,595

Utilities payable A/C

Particulars	Amount	Particulars	Amount
To cash	820	By balance b/d	820
To balance c/d	0
Total	820	Total	820

Salaries and wages payable A/C

Particulars	Amount	Particulars	Amount
To cash	2,740	By balance b/d	2,740
		By salaries	1,920
To balance c/d	1,920
Total	4660	Total	4660

Income tax payable A/C

Particulars	Amount	Particulars	Amount
		By balance b/d	7,845
		By income tax	780
To balance c/d	8625
Total	8625	Total	8625

Notes payable A/C

Particulars	Amount	Particulars	Amount
		By balance b/d	35,400
		By equipment	3100
To balance c/d	38,500
Total	38,500	Total	38,500

Sales A/C

Particulars	Amount	Particulars	Amount
		By balance b/d
		By Cash	5,670
To balance c/d	9,480	By accounts receivable	3,810
Total	9,480	Total	9,480

Salaries and wages A/C

Particulars	Amount	Particulars	Amount
To Cash	680
To salaries payable	1,920	By balance c/d	2600
Total	2600	Total	2600

3)

Adjusted Trial balance

Particulars	Debit	Credit
Cash	4,855
Accounts receivable	3,980
Supplies	580
Equipment	128200
Building	81000
Accumulated depreciation		42005
Accounts payable		5590
Salaries and wages payable		1920
Income tax payable		8625
Notes payable		38500
Sales		9480
Salaries and wages	2600
Dividends	620
Depreciation-Equipment	920
Rent	950
Interest on Notes payable	182
Interest payable		182
Supplies – Consumption	330
Income tax	780
Common stock		90000
Retained earings		28695
Total	224,997	224,997

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