Record transactions and adjustments. Prepare an answer sheet with the column headings shown aftr the following list of transactions. Record the effect, if any, of the transaction entry or adjusting entry on the appropriate balance sheet category or on the income statement by entering the account name and amount and indicating whether it is an addition (+) or subtraction (-). Column headings reflect the expanded balance sheet equations; items that affect net income should not be shown as affecting owner's equity. The first transaction is provided as an illustration.
Also write the journal entry for each transaction or adjustment.
a. During the month, Supplies Expense was debited $2,600 for supplies purchased. The cost of supplies used during the month was $1,900. Record the adjustment to properly reflect the amount of supplies used and supplies still on hand at the end of the month.
b. During the month, the board of directors declared a cash dividend of $4,800, payable next month.
c. Employees were paid $3,500 in wages for their work during the first three weeks of the month.
d. Employee wages of $1200 for the last week of the month have not been recorded.
e. Revenue from services performed during the month totaled $7400. Of this amount, $3100 was received in cash and the balance is expected to be received within 30 days.
f. A contract was signed with a newspaper for a $400 advertisement; the ad ran during this but will be paid for next month.
g. Merchandise that cost $1550 was sold for $2900. Of this amount, $1100 was received in cash and the balance is expected to be received within 30 days.
h. Independent of transaction (a), assume that during the month, supplies were purchased at a cost of $410 and debited to the Supplies (asset) account. A total of $330 of supplies were used during the month. Record the adjustment to properly reflect of supplies used and supplies still on hand at the end of the month.
i. Interest of $180 has been earned on a note receivable but has not yet been received.
j. Issued 400 shares of $10 par value common stock for $8,800 in cash.
Trans....Assets.........Liabilities...... Equity...........Net Income
A............+700 . . . . . . . . . . . . . . . . . . . . . . . . . . . +700
The expert writes a journal entry for each transaction or adjustments.