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Journal entries and transactions

Please see the attachments.

The fiscal year for this business is July 1 through June 30, a period of twelve months.

1. In the general journal attached, record the following adjusting entries:
a.50% of the prepaid rent expired
b.$120 per month of the prepaid insurance expired
c.Auto supplies inventory shows $19,200 in ending inventory
d.Office supplies inventory shows $1,456 in ending inventory
e.Display equipment depreciation for the fiscal year is $4,800.
f.Office equipment depreciation for the fiscal year is $3,100.
g.Delivery vehicle depreciation for the fiscal year is $2,500.
h.Salaries earned at end of fiscal year but not paid are $1,450.
i.Interest accrued on a note from the bank at fiscal year end is $1,345.
j.$2,500 of the $4,500 unearned service revenue has been earned.

2. Enter the amounts from above in the Adjustments Column of the worksheet.

3. Complete the worksheet.

4. Prepare the following financial reports
a.Income Statement
b.Change of Owner's Equity
c.Balance Sheet

5. Prepare the closing entries (journal).

Attachments

Solution Summary

A number of journal entries like prepaid rent and inventory are recorded, as well as an adjustments column. Reports on income, change of owner's equity and balance sheets are also included in the Excel attachment.

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