Journal Entires: 1. The company purchased a truck at its FMV of $14,000 on June 1, 2026. The truck will be depreciated utilizing the straight-line method over 5 years with a salvage value of $2,000. Depreciate the asset for all months used since purchase. 2. The company started the year with $750 worth of office supplies. On July 8th, the company purchased an additional $250 worth of office supplies. As of September 30th, there are $475 worth of office supplies on hand. (Hint: Draw a T account to help solve) 3. Craig’s Design prepaid $1,200 for a one year Insurance policy that began on July 1st. Record the expired insurance for this policy. 4. Craig has not yet recorded interest expense this quarter for the bank loan in the amount of $633. 5. Wages in the amount of $1,100 must be accrued at the end of the quarter to be paid on October 5th. 6. On August 1st, Craig received $15,000 for an on-going project that will last until mid- November. As of September 30th, Craig has completed 40% of this project. (Hint: Create the liability account) 7. Craig has completed, but not billed $900 work of services to Cool Cars.
Journal Entires:
1. The company purchased a truck at its FMV of $14,000 on June 1, 2026. The truck will be depreciated utilizing the straight-line method over 5 years with a salvage value of $2,000.
2. The company started the year with $750 worth of office supplies. On July 8th, the company purchased an additional $250 worth of office supplies. As of September 30th, there are $475 worth of office supplies on hand. (Hint: Draw a T account to help solve)
3. Craig’s Design prepaid $1,200 for a one year Insurance policy that began on July 1st. Record the expired insurance for this policy.
4. Craig has not yet recorded interest expense this quarter for the bank loan in the amount of $633.
5. Wages in the amount of $1,100 must be accrued at the end of the quarter to be paid on October 5th.
6. On August 1st, Craig received $15,000 for an on-going project that will last until mid- November. As of September 30th, Craig has completed 40% of this project. (Hint: Create the liability account)
7. Craig has completed, but not billed $900 work of services to Cool Cars.
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