Number of Magazine Contract Date Amount Issues A650 May 1 6000 12 B974 Oct 1

Number of magazine contract date amount issues a650

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terms of the contracts are as follows. Number of Magazine Contract Date Amount Issues A650 May 1 $6,000 12 B974 Oct. 1 9,600 24 The first advertisement runs in the month in which the contract is signed. 4. Notes Payable $120,000. This balance consists of a note for one year at an annual interest rate of 9%, dated June 1. (b) Net income $34,150 Ending capital $47,650 Total assets $65,800 (c) (1) 6% (2) $2,500 Preparing adjusting entries. (LO 2, 3) 1. Salaries and wages expense $2,640 2. Rent revenue $84,000 3. Advertising expense $5,200 4. Interest expense $6,300 Problems: Set B 3
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4 3 Adjusting the Accounts Instructions Prepare the adjusting entries at December 31, 2017. (Show all computations.) P3-5B On September 1, 2017, the account balances of Percy Equipment Repair were as follows. No. Debit No. Credit 101 Cash $ 4,880 154 Accumulated Depreciation—Equipment $ 1,500 112 Accounts Receivable 3,520 201 Accounts Payable 3,400 126 Supplies 2,000 209 Unearned Service Revenue 1,400 153 Equipment 15,000 212 Salaries and Wages Payable 500 301 Owner’s Capital 18,600 $25,400 $25,400 During September, the following summary transactions were completed. Sept. 8 Paid $1,400 for salaries due employees, of which $900 is for September. 10 Received $1,200 cash from customers on account. 12 Received $3,400 cash for services performed in September. 15 Purchased store equipment on account $3,000. 17 Purchased supplies on account $1,200. 20 Paid creditors $4,500 on account. 22 Paid September rent $500. 25 Paid salaries $1,250. 27 Performed services on account and billed customers $2,100 for these services. 29 Received $650 from customers for future service. Adjustment data consist of: 1. Supplies on hand $1,300. 2. Accrued salaries payable $300. 3. Depreciation is $100 per month. 4. Services related to unearned service revenue of $1,450 were performed. Instructions (a) Enter the September 1 balances in the ledger accounts. (b) Journalize the September transactions. (c) Post to the ledger accounts. Use J1 for the posting reference. Use the following addi- tional accounts: No. 407 Service Revenue, No. 615 Depreciation Expense, No. 631 Supplies Expense, No. 726 Salaries and Wages Expense, and No. 729 Rent Expense. (d) Prepare a trial balance at September 30. (e) Journalize and post adjusting entries. (f) Prepare an adjusted trial balance. (g) Prepare an income statement and an owner’s equity statement for September and a balance sheet at September 30. Journalize transactions and follow through accounting cycle to preparation of financial statements. (LO 2, 3, 4) (d) Trial balance $30,750 (f) Adj. trial balance $31,150 (g) Net income $2,000 Ending capital $20,600 Total assets $24,600
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  • Winter '17
  • Dr. Mahwish Anjum
  • Balance Sheet, Revenue, Generally Accepted Accounting Principles, 1973, s Capital

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