Journalize the Corporations Transactions for August 2024 August 1/ Paid $836 cash for office supplies. August 2/ Purchased merchandise on account for $675 August 4/ Collected $5,655 cash from customers on account. August 7/ Received a $560 invoice for radio advertising on account. August 8/ Established a petty cash tund for $ /30. August 11/ Received $6,940 cash for performing coaching services. August 15/ Paid previous month's salaries August 17/ Collected $3,900 in advance for coaching services to be performed later. August 20/ Completed a large coaching job and billed the customer for $6,865 August 22/ Received the electric bill and cell phone bill for the business totaling $965. (Credit Accounts Payable) August 25/ Collected $2,950 cash from customers on account. August 27/ Sold merchandise to customers for $4,260 on account. The merchandise cost $2,010 August 30/ Paid $3,360 on account. August 31/ Cash dividends of $2,700 were paid to stockholders. Adjusting Entries Depreciation method on the truck was changed to the units of production method in August. Depreciation was recorded assuming a useful life of five years, salvage value of $3,000 and estimated miles of 100,000. The truck was used 2,400 miles in August. Prepaid Insurance for the month has expired Office Supplies on hand, $795 Unearned Revenue earned during the month, $1,900. Another month of rent has expired The company records bad debt using the percent of receivables method estimating that 2% of receivables will not be collected. Bad debt is calculated after all other entries are recorded Another month of depreciation was recorded on the building Another month of depreciation was recorded on the equipment Accrue payroll expense for August Accrue payroll tax expense for August Back ground Info: Accounts available : Cash Petty Cash Accounts Receivable Allowance for Bad Debt Merchandise Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Prepaid Rent Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment Truck Accumulated Depreciation-Truck Accounts Payable Salaries Payable Employee Federal Income Taxes Payable Employee State Income Taxes Payable Federal Unemployment Taxes Payable FICA—Medicare Taxes Payable FICA—OASDI Taxes Payable State Unemployment Taxes Payable Interest Payable Refunds Payable Unearned Revenue Notes Payable Common Stock Dividends Service Revenue Sales Revenue Sales Discounts Forfeited Cost of Goods Sold Salaries Expense Payroll Tax Expense Rent Expense Utilities Expense Depreciation Expense - Building Depreciation Expense - Equipment Depreciation Expense - Truck Advertising Expense Interest Expense Delivery Expense Supplies Expense Insurance Expense Bad Debt Expense Also in the images provided is the corporation previous account balance from July 2024 trial balance this will be needed to determine the beginning retained earnings balance.

Journalize the Corporations Transactions for August 2024 August 1/ Paid $836 cash for office supplies. August 2/ Purchased merchandise on account for $675 August 4/ Collected $5,655 cash from customers on account. August 7/ Received a $560 invoice for radio advertising on account. August 8/ Established a petty cash tund for $ /30. August 11/ Received $6,940 cash for performing coaching services. August 15/ Paid previous month's salaries August 17/ Collected $3,900 in advance for coaching services to be performed later. August 20/ Completed a large coaching job and billed the customer for $6,865 August 22/ Received the electric bill and cell phone bill for the business totaling $965. (Credit Accounts Payable) August 25/ Collected $2,950 cash from customers on account. August 27/ Sold merchandise to customers for $4,260 on account. The merchandise cost $2,010 August 30/ Paid $3,360 on account. August 31/ Cash dividends of $2,700 were paid to stockholders. Adjusting Entries Depreciation method on the truck was changed to the units of production method in August. Depreciation was recorded assuming a useful life of five years, salvage value of $3,000 and estimated miles of 100,000. The truck was used 2,400 miles in August. Prepaid Insurance for the month has expired Office Supplies on hand, $795 Unearned Revenue earned during the month, $1,900. Another month of rent has expired The company records bad debt using the percent of receivables method estimating that 2% of receivables will not be collected. Bad debt is calculated after all other entries are recorded Another month of depreciation was recorded on the building Another month of depreciation was recorded on the equipment Accrue payroll expense for August Accrue payroll tax expense for August Back ground Info: Accounts available : Cash Petty Cash Accounts Receivable Allowance for Bad Debt Merchandise Inventory Estimated Returns Inventory Office Supplies Prepaid Insurance Prepaid Rent Land Building Accumulated Depreciation-Building Equipment Accumulated Depreciation-Equipment Truck Accumulated Depreciation-Truck Accounts Payable Salaries Payable Employee Federal Income Taxes Payable Employee State Income Taxes Payable Federal Unemployment Taxes Payable FICA—Medicare Taxes Payable FICA—OASDI Taxes Payable State Unemployment Taxes Payable Interest Payable Refunds Payable Unearned Revenue Notes Payable Common Stock Dividends Service Revenue Sales Revenue Sales Discounts Forfeited Cost of Goods Sold Salaries Expense Payroll Tax Expense Rent Expense Utilities Expense Depreciation Expense - Building Depreciation Expense - Equipment Depreciation Expense - Truck Advertising Expense Interest Expense Delivery Expense Supplies Expense Insurance Expense Bad Debt Expense Also in the images provided is the corporation previous account balance from July 2024 trial balance this will be needed to determine the beginning retained earnings balance.

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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Question

Journalize the Corporations Transactions for August 2024

August 1/ Paid $836 cash for office supplies.

August 2/ Purchased merchandise on account for $675

August 4/ Collected $5,655 cash from customers on account.

August 7/ Received a $560 invoice for radio advertising on account.

August 8/ Established a petty cash tund for $ /30.

August 11/ Received $6,940 cash for performing coaching services.

August 15/ Paid previous month's salaries

August 17/ Collected $3,900 in advance for coaching services to be performed later.

August 20/ Completed a large coaching job and billed the customer for $6,865

August 22/ Received the electric bill and cell phone bill for the business totaling $965. (Credit Accounts

Payable)

August 25/ Collected $2,950 cash from customers on account.

August 27/ Sold merchandise to customers for $4,260 on account. The merchandise cost $2,010

August 30/ Paid $3,360 on account.

August 31/ Cash dividends of $2,700 were paid to stockholders.

Adjusting Entries

Depreciation method on the truck was changed to the units of production method in August. Depreciation was recorded assuming a useful life of five years, salvage value of $3,000 and estimated miles of 100,000. The truck was used 2,400 miles in August.
Prepaid Insurance for the month has expired
Office Supplies on hand, $795
Unearned Revenue earned during the month, $1,900.
Another month of rent has expired
The company records bad debt using the percent of receivables method estimating that 2% of receivables will not be collected. Bad debt is calculated after all other entries are recorded
Another month of depreciation was recorded on the building
Another month of depreciation was recorded on the equipment
Accrue payroll expense for August

Accrue payroll tax expense for August

Back ground Info: Accounts available :

Cash

Petty Cash

Accounts Receivable

Allowance for Bad Debt

Merchandise Inventory

Estimated Returns Inventory

Office Supplies

Prepaid Insurance

Prepaid Rent

Land

Building

Accumulated Depreciation-Building

Equipment

Accumulated Depreciation-Equipment

Truck

Accumulated Depreciation-Truck

Accounts Payable

Salaries Payable

Employee Federal Income Taxes Payable

Employee State Income Taxes Payable Federal Unemployment Taxes Payable

FICA—Medicare Taxes Payable

FICA—OASDI Taxes Payable

State Unemployment Taxes Payable

Interest Payable

Refunds Payable

Unearned Revenue

Notes Payable

Common Stock

Dividends

Service Revenue

Sales Revenue

Sales Discounts Forfeited

Cost of Goods Sold

Salaries Expense

Payroll Tax Expense

Rent Expense

Utilities Expense

Depreciation Expense - Building

Depreciation Expense - Equipment

Depreciation Expense - Truck

Advertising Expense

Interest Expense

Delivery Expense

Supplies Expense

Insurance Expense

Bad Debt Expense

Also in the images provided is the corporation previous account balance from July 2024 trial balance this will be needed to determine the beginning retained earnings balance.

# Adjusted Trial Balance - Educational Guide

## Overview

The adjusted trial balance provides a comprehensive overview of all accounts with their respective debit and credit balances as of July 31, 2024. This document is essential for ensuring that the company's ledger is balanced before preparing financial statements.

### Adjusted Trial Balance Details (July 31, 2024)

#### Left Side

- **Cash**: Debit $172,947
- **Accounts Receivable**: Debit $17,320
- **Merchandise Inventory**: Debit $2,710
- **Estimated Returns Inventory**: Debit $556
- **Office Supplies**: Debit $965
- **Prepaid Insurance**: Debit $2,175
- **Prepaid Rent**: Debit $7,500
- **Land**: Debit $45,000
- **Building**: Debit $45,000 / Credit $4,200
- **Equipment**: Debit $6,500 / Credit $2,800
- **Truck**: Debit $28,250 / Credit $3,600
- **Accumulated Depreciation—Truck**: Debit balance $454
- **Accounts Payable**: Credit $17,410
- **Salaries Payable**: Credit $11,200
- **Interest Payable**: Credit $2,610
- **Refunds Payable**: Credit $1,300
- **Unearned Revenue**: Credit $3,560
- **Notes Payable**: Credit $43,500
- **Common Stock**: Credit $128,250
- **Retained Earnings**: Credit $58,662
- **Dividends**: Debit $1,290
- **Service Revenue**: Credit $25,710
- **Sales Revenue**: Credit $8,114
- **Sales Discounts Forfeited**: Credit $166
- **Cost of Goods Sold**: Debit $4,390
- **Salaries Expense**: Debit $11,200
- **Rent Expense**: Debit $1,500
- **Utilities Expense**: Debit $1,140
- **Depreciation Expense - Building**: Debit $1,400
- **Depreciation Expense - Equipment**: Debit $1,200
- **Depreciation Expense - Truck**: Debit $454
- **Supplies Expense**

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