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2 - $2,400 To Cash A/c $2,400(Being Prepaid Rent Supplies...

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2. Prepare general journal entries to record the following transaction and related year end adjustment, if necessary, for The Company: Date Transactions 1/1/2009 The Company purchased a computer that costs $15,000 for cash. The Com 3/1/2009 The Company borrowed $10,000 from a ban k by signing a one-year note at 5/1/2009 The Company paid $2,400 cash in advance for a one-year office space with 10/1/2009 The Company purchased $795 of supplies on account amounting to 40000 Adjusting entries needed to be made based on the above transactions, as well as the follow Salaries that had been earned by the sales staff but had not yet been paid amounted to $2 Supplies worth $180.00 were on hand at the 12/31/09 Solution:- Computation of the Journal Entries Sl no Particulars Amount Amount 1/1/2009 Computer Equipment A/c-----------Dr $15,000 To Cash A/c $15,000 (Being computer purchased for cash) 3/1/2009 Cash A/c----------------Dr $10,000 To Note Payable A/c $10,000 (Being Borrowed from bank) 5/1/2009 Prepaid Rent A/c----------Dr $2,400
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Unformatted text preview: $2,400 To Cash A/c $2,400 (Being Prepaid Rent ) 10/1/2009 Supplies A/c--------------------Dr $795 To Account Payable A/c $795 (Being Supplies purchased on Account) Computation of the Adjusted Journal Entries Sl no Particulars Amount Amount 31/12/2009 Depreciation Exp A/c----------Dr $5,000 To Acc Depreciation A/c $5,000 (Being Dep Exp are recorded for 1 year) 31/12/2009 Interest Expenses A/c----------------Dr $1,000 To Interest Expenses Payable A/c $1,000 (Being Interest Amount Recorded) 31/12/2009 Rent Expenses A/c----------Dr $1,600 To Prepaid Rent Expenses A/c $1,600 (Being Prepaid Rent are adjusted ) 31/12/2009 Supplies Expenses A/c--------------------Dr $615 To Supplies A/c $615 (Being Supplies expenses are recorded) 31/12/2009 Salaries Expenses A/c-----------Dr $2,300 To Salaries payable A/c $2,300 puter had no salvage value and a 3 year useful life. The Company uses straight-line depreciatio t 12% p.a. h occupancy to begin 05/01/09 wing data: 2,300.00...
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