Journalize the adjusting entries. 1. To record rent expense. (Three months of rent was prepaid earlier in the month.) 2. To record office supplies used. (A physical count revealed $625 of office supplies on hand at the end of the month.) 3.  To record depreciation on furniture. (The furniture has a residual value of $4,000, and estimated useful life of five years.  Use straight line depreciation.) 4. To record depreciation on the building. (The building has a residual value of $24,000, and estimated useful life of 20 years.  Use  straight line depreciation.) 5.  To record service revenue earned that was collected in advance. (Cedar River has earned $11,000 of the revenue that had been collected in advance.) 6.  To accrue salaries expense. (Cedar River pays $6,000 every Friday for a five-day work week - Monday through Friday.  July 31 is a Tuesday.  Accrue two days of salaries.) 7.  To accrue interest expense. (One month's interest on the Note Payable is $250.) 8.  To accrue service revenue. (Revenue of $700 has been earned. The client will pay next month.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Journalize the adjusting entries.

1. To record rent expense. (Three months of rent was prepaid earlier in the month.)

2. To record office supplies used. (A physical count revealed $625 of office supplies on hand at the end of the month.)

3.  To record depreciation on furniture. (The furniture has a residual value of $4,000, and estimated useful life of five years.  Use straight line depreciation.)

4. To record depreciation on the building. (The building has a residual value of $24,000, and estimated useful life of 20 years.  Use  straight line depreciation.)

5.  To record service revenue earned that was collected in advance. (Cedar River has earned $11,000 of the revenue that had been collected in advance.)

6.  To accrue salaries expense. (Cedar River pays $6,000 every Friday for a five-day work week - Monday through Friday.  July 31 is a Tuesday.  Accrue two days of salaries.)

7.  To accrue interest expense. (One month's interest on the Note Payable is $250.)

8.  To accrue service revenue. (Revenue of $700 has been earned. The client will pay next month.)

 

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Part 1_Transactions
Transactions for July 2024
1 On July 1, 2024, Cedar River Company, an information technology (IT) consulting company, sold common stock for $650,000 all at par value.
2 On July 3, Cedar River paid $225,000 cash for land.
3 Cedar River purchased $1,250 of office supplies on account on July 5.
4 On July 6, Cedar River provided IT consulting services for a client and collected $12,000 cash.
5 Cedar River provided IT consulting services of $14,000 for clients on July 7. The clients will pay Cedar River in the future.
6 Cedar River paid cash expenses on July 13: salaries of $6,000 (ignore payroll taxes).
7 On July 12, Cedar River paid $750 on the accounts payable created in Transaction #3.
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8 Cedar River collected $3,000 cash on July 14 from a client in transaction #5.
9 Provided IT consulting services of $31,000 to a client on account.
10 On July 16, Cedar Rivers paid $2,500 in cash dividends to shareholders.
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Part 1_T-Accounts
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11 On July 18, Cedar River prepaid office rent of $15,000 for the months of July, August and September.
12 Cedar River paid $6,000 (ignore payroll taxes) salaries to employees on July 20.
13 Cedar River purchased a building for $520,000 on July 25. A note payable was issued for the entire amount.
14 On July 26, Cedar River paid cash of $25,000 for furniture.
Comment
Part 2 Instructions
15 Cedar River received a cell phone bill for $1,100, on July 28, and will pay this amount in August. Use Utilities Payable.
16 On July 27, Cedar River paid employee salaries of $6,000.
17 Cedar River meets with a client on July 30, who pays $22,000 in advance for consulting services to be performed during August and September.
18 On July 30, Cedar River performed consulting services for clients and received $16,000 in cash.
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Transcribed Image Text:View 125% ✓ Zoom Part 1_Transactions Transactions for July 2024 1 On July 1, 2024, Cedar River Company, an information technology (IT) consulting company, sold common stock for $650,000 all at par value. 2 On July 3, Cedar River paid $225,000 cash for land. 3 Cedar River purchased $1,250 of office supplies on account on July 5. 4 On July 6, Cedar River provided IT consulting services for a client and collected $12,000 cash. 5 Cedar River provided IT consulting services of $14,000 for clients on July 7. The clients will pay Cedar River in the future. 6 Cedar River paid cash expenses on July 13: salaries of $6,000 (ignore payroll taxes). 7 On July 12, Cedar River paid $750 on the accounts payable created in Transaction #3. Add Category Pivot Table Part1_Journal Entires Rakowo - Accounting Cycle Workbook (7) Edited @ A Table Chart Text Shape Media Part 1_Worksheet 8 Cedar River collected $3,000 cash on July 14 from a client in transaction #5. 9 Provided IT consulting services of $31,000 to a client on account. 10 On July 16, Cedar Rivers paid $2,500 in cash dividends to shareholders. + Part 1_T-Accounts Insert 11 On July 18, Cedar River prepaid office rent of $15,000 for the months of July, August and September. 12 Cedar River paid $6,000 (ignore payroll taxes) salaries to employees on July 20. 13 Cedar River purchased a building for $520,000 on July 25. A note payable was issued for the entire amount. 14 On July 26, Cedar River paid cash of $25,000 for furniture. Comment Part 2 Instructions 15 Cedar River received a cell phone bill for $1,100, on July 28, and will pay this amount in August. Use Utilities Payable. 16 On July 27, Cedar River paid employee salaries of $6,000. 17 Cedar River meets with a client on July 30, who pays $22,000 in advance for consulting services to be performed during August and September. 18 On July 30, Cedar River performed consulting services for clients and received $16,000 in cash. Share Part 2_Adjusting Entries Format Organize Part 2_ < >
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