I need assistance in posting adjusting entries for the following:
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 completed the following for the unadjusted trial balance: I also have the General Journal completed ...
For the June 18 transaction, Office supplies ... On the adjusted trial balance ... should the new amount be $500 OR should this be $700? THANKS !!
DESCRIPTION DEBIT CREDIT
DEPOSIT ELECTRIC COMPANY $500
DEPOSIT WATER, SEWAGE, GARBAGE $200
DEPOSIT, TELEPHONE $250
OFFICE SUPPLIES $1,200
PREPAID INSURANCE $3,600
PREPAID LEASE $12,000
MACHINERY AND EQUIPMENT $100,000
FURNITURE & FIXTURES $20,000
ACCOUNTS PAYABLE $1,200
UNEARNED REVENUE $50,000
NOTES PAYABLE - FURNITURE & FIXTURES $20,000
NOTES PAYABLE - MACHINERY & EQUIPMENT $90,000
CAPITAL STOCK $300,000
ACCOUNTING & LEGAL EXPENSE $2,500
INDEPENDENT CONTRACTOR $900
UTILITIES EXPENSE $430
TOTALS $461,200 $461,200