Flint, CPA, opened an accounting consulting practice on January 1, 2020. During the first month of operations, the following transactions occurred.1. Performed services for customers with terms net 60. At January 31, $4,650 of such services was performed but not yet billed to the insurance companies.2. Utility expenses incurred but not paid prior to January 31 totaled $1,720.3. Purchased computer and networking equipment on January 1 for $60,000, paying $30,000 in cash and signing a $30,000, 3-year note payable. The equipment depreciates $1,200 per month. Interest is $300 per month.4. Purchased a one-year insurance policy on January 1 for $21,600.5. Purchased $1,600 of supplies. On January 31, determined that $750 of supplies were on hand.Prepare the adjusting entries on January 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Name: Flint, CPA, opened an accounting consulting practice on January 1, 202
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Description: Flint, CPA, opened an accounting consulting practice on January 1, 2020. During the first month of operations, the following transactions occurred.1. Performed services for customers with terms net 60. At January 31, $4,650 of such services was perfo

Adjusting Entries : Adjusting journal entries are used to record transactions that have occurred but…

Answered: Flint, CPA, opened an accounting…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Flint, CPA, opened an accounting consulting practice on January 1, 2020. During the first month of operations, the following transactions occurred.

1.		Performed services for customers with terms net 60. At January 31, $4,650 of such services was performed but not yet billed to the insurance companies.
2.		Utility expenses incurred but not paid prior to January 31 totaled $1,720.
3.		Purchased computer and networking equipment on January 1 for $60,000, paying $30,000 in cash and signing a $30,000, 3-year note payable. The equipment depreciates $1,200 per month. Interest is $300 per month.
4.		Purchased a one-year insurance policy on January 1 for $21,600.
5.		Purchased $1,600 of supplies. On January 31, determined that $750 of supplies were on hand.

Prepare the adjusting entries on January 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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