Account Numbers Cash 100 Accounts Receivable 101 Interest Receivable 103 Supplies 105 Equipment 107 Accumulated Depreciation: Equipment 108 Accounts Payable 201 Unearned Revenue 202 Income Tax Payable 204 Common Stock 301 Retained Earnings 302 Dividends 303 Income Summary 400 Service Revenue 401 Interest Revenue 403 Salaries Expense 505 Utility Expense 510 Supplies Expense 515 Depreciation Expense: Equipment 520 Income Tax Expense 525 Date Transaction Aug. 1 Cliff issues $50,000 shares of common stock for cash. Aug. 3 Cliff purchases barbering equipment for $32,500; $12,500 was paid immediately with cash, and the remaining $20,000 was billed to Cliff with payment due in 30 days. He decided to buy used equipment, because he was not sure if he truly wanted to run a barber shop. He assumed that he will replace the used equipment with new equipment within a couple of years. Aug. 6 Cliff purchases supplies for $829 cash. Aug. 10 Cliff provides $2,400 in services to a customer who asks to be billed for the services. Aug. 13 Cliff pays a $58 utility bill with cash. Aug. 14 Cliff receives $3,600 cash in advance from a customer for services not yet rendered. Aug. 16 Cliff distributed $250 cash in dividends to stockholders. Aug. 17 Cliff receives $3,000 cash from a customer for services rendered. Aug. 19 Cliff paid $10,000 toward the outstanding liability from the August 3 transaction. Aug. 22 Cliff paid $5,319 cash in salaries expense to employees. Aug. 28 The customer from the August 10 transaction pays $1,200 cash toward Cliff’s account. ADJUSTMENTS Date Transaction Aug. 31 Cliff took an inventory of supplies and discovered that $136 of supplies remain unused at the end of the month. Aug. 31 The equipment purchased on August 3 depreciated $1,355 during the month of August. Aug. 31 Clip’em Cliff performed $2,400 of services during August for the customer from the August 14 transaction. Aug. 31 Reviewing the company bank statement, Clip’em Cliff discovers $142 of interest earned during the month of August that was previously uncollected and unrecorded. As a new customer for the bank, the interest was paid by a bank that offered an above-market-average interest rate. Aug. 31 Unpaid and previously unrecorded income taxes for the month are $5,481. The tax payment was to cover his federal quarterly estimated income taxes. He lives in a state that does not have an individual income tax.
Account Numbers
Cash 100
Interest Receivable 103
Supplies 105
Equipment 107
Accounts Payable 201
Unearned Revenue 202
Income Tax Payable 204
Common Stock 301
Dividends 303
Income Summary 400
Service Revenue 401
Interest Revenue 403
Salaries Expense 505
Utility Expense 510
Supplies Expense 515
Depreciation Expense: Equipment 520
Income Tax Expense 525
Date Transaction
Aug. 1 Cliff issues $50,000 shares of common stock for cash.
Aug. 3 Cliff purchases barbering equipment for $32,500; $12,500 was paid immediately with cash, and the remaining $20,000 was billed to Cliff with payment due in 30 days. He decided to buy used equipment, because he was not sure if he truly wanted to run a barber shop. He assumed that he will replace the used equipment with new equipment within a couple of years.
Aug. 6 Cliff purchases supplies for $829 cash.
Aug. 10 Cliff provides $2,400 in services to a customer who asks to be billed for the services.
Aug. 13 Cliff pays a $58 utility bill with cash.
Aug. 14 Cliff receives $3,600 cash in advance from a customer for services not yet rendered.
Aug. 16 Cliff distributed $250 cash in dividends to stockholders.
Aug. 17 Cliff receives $3,000 cash from a customer for services rendered.
Aug. 19 Cliff paid $10,000 toward the outstanding liability from the August 3 transaction.
Aug. 22 Cliff paid $5,319 cash in salaries expense to employees.
Aug. 28 The customer from the August 10 transaction pays $1,200 cash toward Cliff’s account.
ADJUSTMENTS
Date Transaction
Aug. 31 Cliff took an inventory of supplies and discovered that $136 of supplies remain unused at the end of the month.
Aug. 31 The equipment purchased on August 3
Aug. 31 Clip’em Cliff performed $2,400 of services during August for the customer from the August 14 transaction.
Aug. 31 Reviewing the company bank statement, Clip’em Cliff discovers $142 of interest earned during the month of August that was previously uncollected and unrecorded. As a new customer for the bank, the interest was paid by a bank that offered an above-market-average interest rate.
Aug. 31 Unpaid and previously unrecorded income taxes for the month are $5,481. The tax payment was to cover his federal quarterly estimated income taxes. He lives in a state that does not have an individual income tax.
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