An office supply company that sells and services commercial office copiers was founded in 2020. Record the following transactions from the month of September 2024. Regular entries: Sept. 1 Purchased a new delivery truck for $88,800, paying $36,400 cash and financing the balance using a note payable at 9% per annum. The note payable is due in 12 months, and interest on the note must be paid on the first day of every month, beginning on October 1, 2024. The truck has a useful life of six years and a residual value of $8,880. Sept 1 Paid $2,664 for an insurance policy on the new truck for the period September 1, 2024, to August 31, 2025. Sept 5 Purchased inventory on credit at a cost of $14,430. Sept 12 A local University, one of the company’s largest customers, signed a photocopy service contract. The contract runs from October 1, 2024, to September 30, 2025, and will mean that the company services all of the university’s photocopiers. In In accordance with the contract terms, the University paid SL $8,325, representing the first month’s service revenue under the contract. Sept 18 Sold $17,760 of office supplies, of which one-quarter was on account and the balance was cash. The cost to the company of the products sold was $10,500. Sept 30 Paid dividends in the amount of $16,650, which had been declared by the board (and recorded) in August 2024. Adjusting entries: Sept. 30 The company made the necessary month-end adjusting entry related to the depreciation of the new delivery truck. Sept 30 The company made the necessary month-end adjusting entry related to the interest on the note payable. Sept 30 The company made the necessary month-end adjusting entry related to the insurance policy. Prepare the journal entries and adjusting entries for the above transactions. (Record journal entries in the order presented in the problem). Please show your work for each step and how you got to that amount. DO NOT GIVE SOLUTION IN IMAGE
An office supply company that sells and services commercial office copiers was founded in 2020. Record the following transactions from the month of September 2024.
Regular entries:
Sept. 1 Purchased a new delivery truck for $88,800, paying $36,400 cash and financing the balance using a note payable at 9% per annum. The note payable is due in 12 months, and interest on the note must be paid on the first day of every month, beginning on October 1, 2024. The truck has a useful life of six years and a residual value of $8,880.
Sept 1 Paid $2,664 for an insurance policy on the new truck for the period September 1, 2024, to August 31, 2025.
Sept 5 Purchased inventory on credit at a cost of $14,430.
Sept 12 A local University, one of the company’s largest customers, signed a photocopy service contract. The contract runs from October 1, 2024, to September 30, 2025, and will mean that the company services all of the university’s photocopiers. In
In accordance with the contract terms, the University paid SL $8,325, representing the first month’s service revenue under the contract.
Sept 18 Sold $17,760 of office supplies, of which one-quarter was on account and the balance was cash. The cost to the company of the products sold was $10,500.
Sept 30 Paid dividends in the amount of $16,650, which had been declared by the board (and recorded) in August 2024.
Sept. 30 The company made the necessary month-end adjusting entry related to the
Sept 30 The company made the necessary month-end adjusting entry related to the interest on the note payable.
Sept 30 The company made the necessary month-end adjusting entry related to the insurance policy.
Prepare the
Please show your work for each step and how you got to that amount.
DO NOT GIVE SOLUTION IN IMAGE
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