I need assistance in posting adjusting entries for the following: From the June 18 transaction Bella Computers purchased $1,200.00 of office supplies on credit. At the end of the month there are $500.00 of supplies remaining. From the June 2 transaction Bella Computers purchased office furniture and fixtures at a cost of $20,000, estimated to have a 10 year useful life, with no residual value. Depreciation is recorded using the straight line method (cost-residual value/estimated life). From the June 4 transaction Bella Computers purchased machinery at a cost of $100,000, estimated to have a useful life of 7 years, with a salvage value of $9,000. Depreciation is recorded using the straight line method (cost-residual value/estimated life). Bella Computers paid a 1 year prepaid lease for the sum of $1,000 per month. They make an adjustment at the end of the month to record one month’s lease expiration. From the June 10 transaction Bella Computers paid the premiums on June 10 for a two year policy that officially begins coverage on July 1 and will continue for 2 years. The prepaid premium for the entire 2 year policy is $3,600.00. They make an adjustment at the end of the month to record one month’s insurance coverage expiration. On June 30 Bella Computers owed the secretary / receptionist for 5 days of fees as an independent contractor. I completed the following: GENERAL JOURNAL DATE ACCOUNT # ACCOUNT TITLES AND DESCRIPTION DEBIT CREDIT 1-Jun 100 Cash $ 100,000 300 Capital Stock 5,000 shares par $10.00 $ 100,000 505 Accounting Expense $ 2,500 100 Cash $ 2,500 140 Prepaid Lease $ 12,000 100 cash $ 12,000 103 Deposit Electric Company $ 500 100 Cash $ 500 104 Deposit City, Water, Sewage, Garbage $ 200 100 Cash $ 200 2-Jun 165 Furniture & Fixtures $ 20,000 220 Notes Payable 5 years at 6% no residual $ 20,000 4-Jun 160 Machinery & Equipment $ 100,000 100 Cash $ 10,000 225 Notes Payable 7 years at 8% interest $ 90,000 215 Unearned Revenue $ 50,000 100 cash $ 50,000 5-Jun 100 Cash $ 200,000 300 Capital Stock $ 200,000 10-Jun 130 Prepaid Insurance $ 3,600 518 cash $ 3,600 18-Jun 530 Office Supplies $ 1,200 200 Accounts Payable $ 1,200 20-Jun 570 telephone deposit $ 250 100 cash $ 250 25-Jun 515 Independent Contractor $ 900 100 Cash $ 900 30-Jun 570 Utilities Expense $ 430 Cash $ 430 DATE ACCOUNT POST REF DEBIT CREDIT 1-Jun Cash 100 $ 100,000 Capital Stock 200 $ 100,000 Accounting Expense 505 $ 2,500 cash 100 $ 2,500 Prepaid Lease 140 $ 12,000 cash 100 $ 12,000 Deposit Electric Co 103 $ 500 cash 100 $ 500 Deposit City, Water Sewage, Garbage 104 $ 200 cash 100 $ 200 2-Jun Furniture & Fixtures 165 $ 20,000 Notes Payable 220 $ 20,000 4-Jun Machinery & Equipment 160 $ 100,000 Cash 100 $ 10,000 Notes Payable 220 $ 90,000 Unearned Revenue 215 $ 50,000 cash 100 $ 50,000 Telephone Deposit $ 250 cash 100 $ 250 5-Jun Cash 100 $ 200,000 Capital Stock 300 $ 200,000 10-Jun Prepaid Insurance 518 $ 3,600 cash 100 $ 3,600 18-Jun Office Supplies 530 $ 1,200 Accounts Payable 200 $ 1,200 25-Jun Independent Contractor 515 $ 900 Cash 100 $ 900 30-Jun Utilities Expense 570 $ 430 30-Jun Cash 100 $ 430 UNADJUSTED TRIAL BALANCE PERIOD ENDING JUNE 30, 2020 DESCRIPTION DEBIT CREDIT CASH $ 319,620 DEPOSIT ELECTRIC COMPANY $ 500 DEPOSIT WATER, SEWAGE, GARBAGE $ 200 DEPOSIT, TELEPHONE $ 250 OFFICE SUPPLIES $ 1,200 PREPAID INSURANCE $ 3,600 PREPAID LEASE $ 12,000 MACHINERY AND EQUIPMENT $ 100,000 FURNITURE & FIXTURES $ 20,000 ACCOUNTS PAYABLE $ 1,200 UNEARNED REVENUE $ 50,000 NOTES PAYABLE - FURNITURE & FIXTURES $ 20,000 NOTES PAYABLE - MACHINERY & EQUIPMENT $ 90,000 CAPITAL STOCK $ 300,000 ACCOUNTING & LEGAL EXPENSE $ 2,500 INDEPENDENT CONTRACTOR $ 900 UTILITIES EXPENSE $ 430 TOTALS $ 461,200 $ 461,200

I need assistance in posting adjusting entries for the following: From the June 18 transaction Bella Computers purchased $1,200.00 of office supplies on credit. At the end of the month there are $500.00 of supplies remaining. From the June 2 transaction Bella Computers purchased office furniture and fixtures at a cost of $20,000, estimated to have a 10 year useful life, with no residual value. Depreciation is recorded using the straight line method (cost-residual value/estimated life). From the June 4 transaction Bella Computers purchased machinery at a cost of $100,000, estimated to have a useful life of 7 years, with a salvage value of $9,000. Depreciation is recorded using the straight line method (cost-residual value/estimated life). Bella Computers paid a 1 year prepaid lease for the sum of $1,000 per month. They make an adjustment at the end of the month to record one month’s lease expiration. From the June 10 transaction Bella Computers paid the premiums on June 10 for a two year policy that officially begins coverage on July 1 and will continue for 2 years. The prepaid premium for the entire 2 year policy is $3,600.00. They make an adjustment at the end of the month to record one month’s insurance coverage expiration. On June 30 Bella Computers owed the secretary / receptionist for 5 days of fees as an independent contractor. I completed the following: GENERAL JOURNAL DATE ACCOUNT # ACCOUNT TITLES AND DESCRIPTION DEBIT CREDIT 1-Jun 100 Cash $ 100,000 300 Capital Stock 5,000 shares par $10.00 $ 100,000 505 Accounting Expense $ 2,500 100 Cash $ 2,500 140 Prepaid Lease $ 12,000 100 cash $ 12,000 103 Deposit Electric Company $ 500 100 Cash $ 500 104 Deposit City, Water, Sewage, Garbage $ 200 100 Cash $ 200 2-Jun 165 Furniture & Fixtures $ 20,000 220 Notes Payable 5 years at 6% no residual $ 20,000 4-Jun 160 Machinery & Equipment $ 100,000 100 Cash $ 10,000 225 Notes Payable 7 years at 8% interest $ 90,000 215 Unearned Revenue $ 50,000 100 cash $ 50,000 5-Jun 100 Cash $ 200,000 300 Capital Stock $ 200,000 10-Jun 130 Prepaid Insurance $ 3,600 518 cash $ 3,600 18-Jun 530 Office Supplies $ 1,200 200 Accounts Payable $ 1,200 20-Jun 570 telephone deposit $ 250 100 cash $ 250 25-Jun 515 Independent Contractor $ 900 100 Cash $ 900 30-Jun 570 Utilities Expense $ 430 Cash $ 430 DATE ACCOUNT POST REF DEBIT CREDIT 1-Jun Cash 100 $ 100,000 Capital Stock 200 $ 100,000 Accounting Expense 505 $ 2,500 cash 100 $ 2,500 Prepaid Lease 140 $ 12,000 cash 100 $ 12,000 Deposit Electric Co 103 $ 500 cash 100 $ 500 Deposit City, Water Sewage, Garbage 104 $ 200 cash 100 $ 200 2-Jun Furniture & Fixtures 165 $ 20,000 Notes Payable 220 $ 20,000 4-Jun Machinery & Equipment 160 $ 100,000 Cash 100 $ 10,000 Notes Payable 220 $ 90,000 Unearned Revenue 215 $ 50,000 cash 100 $ 50,000 Telephone Deposit $ 250 cash 100 $ 250 5-Jun Cash 100 $ 200,000 Capital Stock 300 $ 200,000 10-Jun Prepaid Insurance 518 $ 3,600 cash 100 $ 3,600 18-Jun Office Supplies 530 $ 1,200 Accounts Payable 200 $ 1,200 25-Jun Independent Contractor 515 $ 900 Cash 100 $ 900 30-Jun Utilities Expense 570 $ 430 30-Jun Cash 100 $ 430 UNADJUSTED TRIAL BALANCE PERIOD ENDING JUNE 30, 2020 DESCRIPTION DEBIT CREDIT CASH $ 319,620 DEPOSIT ELECTRIC COMPANY $ 500 DEPOSIT WATER, SEWAGE, GARBAGE $ 200 DEPOSIT, TELEPHONE $ 250 OFFICE SUPPLIES $ 1,200 PREPAID INSURANCE $ 3,600 PREPAID LEASE $ 12,000 MACHINERY AND EQUIPMENT $ 100,000 FURNITURE & FIXTURES $ 20,000 ACCOUNTS PAYABLE $ 1,200 UNEARNED REVENUE $ 50,000 NOTES PAYABLE - FURNITURE & FIXTURES $ 20,000 NOTES PAYABLE - MACHINERY & EQUIPMENT $ 90,000 CAPITAL STOCK $ 300,000 ACCOUNTING & LEGAL EXPENSE $ 2,500 INDEPENDENT CONTRACTOR $ 900 UTILITIES EXPENSE $ 430 TOTALS $ 461,200 $ 461,200

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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I need assistance in posting adjusting entries for the following:

From the June 18 transaction Bella Computers purchased $1,200.00 of office supplies on credit. At the end of the month there are $500.00 of supplies remaining.

From the June 2 transaction Bella Computers purchased office furniture and fixtures at a cost of $20,000, estimated to have a 10 year useful life, with no residual value. Depreciation is recorded using the straight line method (cost-residual value/estimated life).

From the June 4 transaction Bella Computers purchased machinery at a cost of $100,000, estimated to have a useful life of 7 years, with a salvage value of $9,000. Depreciation is recorded using the straight line method (cost-residual value/estimated life).

Bella Computers paid a 1 year prepaid lease for the sum of $1,000 per month. They make an adjustment at the end of the month to record one month’s lease expiration.

From the June 10 transaction Bella Computers paid the premiums on June 10 for a two year policy that officially begins coverage on July 1 and will continue for 2 years. The prepaid premium for the entire 2 year policy is $3,600.00. They make an adjustment at the end of the month to record one month’s insurance coverage expiration.

On June 30 Bella Computers owed the secretary / receptionist for 5 days of fees as an independent contractor.

I completed the following:

GENERAL JOURNAL
DATE	ACCOUNT #	ACCOUNT TITLES AND DESCRIPTION	DEBIT	CREDIT
1-Jun	100	Cash	$ 100,000
	300	Capital Stock 5,000 shares par $10.00		$ 100,000
	505	Accounting Expense	$ 2,500
	100	Cash		$ 2,500
	140	Prepaid Lease	$ 12,000
	100	cash		$ 12,000
	103	Deposit Electric Company	$ 500
	100	Cash		$ 500
	104	Deposit City, Water, Sewage, Garbage	$ 200
	100	Cash		$ 200
2-Jun	165	Furniture & Fixtures	$ 20,000
	220	Notes Payable 5 years at 6% no residual		$ 20,000
4-Jun	160	Machinery & Equipment	$ 100,000
	100	Cash		$ 10,000
	225	Notes Payable 7 years at 8% interest		$ 90,000
	215	Unearned Revenue		$ 50,000
	100	cash	$ 50,000
5-Jun	100	Cash	$ 200,000
	300	Capital Stock		$ 200,000
10-Jun	130	Prepaid Insurance	$ 3,600
	518	cash		$ 3,600
18-Jun	530	Office Supplies	$ 1,200
	200	Accounts Payable		$ 1,200
20-Jun	570	telephone deposit	$ 250
	100	cash		$ 250
25-Jun	515	Independent Contractor	$ 900
	100	Cash		$ 900
30-Jun	570	Utilities Expense	$ 430
		Cash		$ 430

DATE	ACCOUNT	POST REF	DEBIT	CREDIT
1-Jun	Cash	100	$ 100,000
	Capital Stock	200		$ 100,000
	Accounting Expense	505	$ 2,500
	cash	100		$ 2,500
	Prepaid Lease	140	$ 12,000
	cash	100		$ 12,000
	Deposit Electric Co	103	$ 500
	cash	100		$ 500
	Deposit City, Water Sewage, Garbage	104	$ 200
	cash	100		$ 200
2-Jun	Furniture & Fixtures	165	$ 20,000
	Notes Payable	220		$ 20,000
4-Jun	Machinery & Equipment	160	$ 100,000
	Cash	100		$ 10,000
	Notes Payable	220		$ 90,000
	Unearned Revenue	215		$ 50,000
	cash	100	$ 50,000
	Telephone Deposit		$ 250
	cash	100		$ 250
5-Jun	Cash	100	$ 200,000
	Capital Stock	300		$ 200,000
10-Jun	Prepaid Insurance	518	$ 3,600
	cash	100		$ 3,600
18-Jun	Office Supplies	530	$ 1,200
	Accounts Payable	200		$ 1,200
25-Jun	Independent Contractor	515	$ 900
	Cash	100		$ 900
30-Jun	Utilities Expense	570	$ 430
30-Jun	Cash	100		$ 430


UNADJUSTED TRIAL BALANCE
PERIOD ENDING JUNE 30, 2020

DESCRIPTION	DEBIT	CREDIT
CASH	$ 319,620
DEPOSIT ELECTRIC COMPANY	$ 500
DEPOSIT WATER, SEWAGE, GARBAGE	$ 200
DEPOSIT, TELEPHONE	$ 250
OFFICE SUPPLIES	$ 1,200
PREPAID INSURANCE	$ 3,600
PREPAID LEASE	$ 12,000
MACHINERY AND EQUIPMENT	$ 100,000
FURNITURE & FIXTURES	$ 20,000
ACCOUNTS PAYABLE		$ 1,200
UNEARNED REVENUE		$ 50,000
NOTES PAYABLE - FURNITURE & FIXTURES		$ 20,000
NOTES PAYABLE - MACHINERY & EQUIPMENT		$ 90,000
CAPITAL STOCK		$ 300,000
ACCOUNTING & LEGAL EXPENSE	$ 2,500
INDEPENDENT CONTRACTOR	$ 900
UTILITIES EXPENSE	$ 430


TOTALS	$ 461,200	$ 461,200

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