Journalize with the following instructions for Nancy's Salon Feb. 1 Nancy paid cash for 60 bottles of shampoo/conditioner at $10/each. The bottles of shampoo/conditioner are to be held for resale. Nancy uses the perpetual method. Nancy uses the FIFO method to account for inventory. 1 Purchased supplies on account, $500. 4 Paid cash for the utility bill received last month. 4 Collected cash from customers on account, $350. 6 Paid cash on the amount owed on account, $330. 12 Paid the hair stylist cash of $1,200. *Do not forget that a portion of the hair stylist’s salaries were recorded as an expense at the end of January. 8 Sold 45 bottles of the shampoo/conditioner at a price of $30/bottle receiving cash. 10 Nancy paid cash for 50 bottles of shampoo/conditioner at $11/each. The bottles of shampoo/conditioner are to be held for resale. 14 Nancy sold 30 preloaded haircut cards for $150/each. Each preloaded card entitles the holder to 10 haircuts. Hint: Nancy receives cash, but owes the service of providing haircuts to the cardholders. 15 The salon provided haircuts to 295 customers that paid cash and 25 customers that agreed to pay in the future. The price charged for the haircuts, $20. 24 Sold 41 bottles of the shampoo/conditioner at a price of $30/bottle receiving cash. 26 Paid the hair stylist cash of $1,200. 26 Purchased 30 bottles of shampoo/conditioner for $12/each on account. The bottles of shampoo/conditioner are to be held for resale. 27 Sold 29 bottles of the shampoo/conditioner at a price of $20/bottle receiving cash. 28 The salon provided haircuts to 278 customers that paid cash and 33 customers that agreed to pay in the future. The price charged for the haircuts, $20. 28 Collected cash from customers on account, $960. 28 Nancy paid himself a salary of $3,800 and a dividend of $600 for the month of February. ADJUSTMENT INFORMATION at February 28th, 2022 1. Record one month (for February) of depreciation on the fixed assets. 2. The hair stylist had worked for 2 days at $100 per day, but will not be paid until next month. 3. An inventory count of supplies revealed that $278 remains in supplies. 4. Utility bills that have been received but not paid totaled $386. 5. An inventory count of shampoo/conditioner reveals that 22 bottles remain in inventory. Any lost inventory is recorded as cost of merchandise sold. 6. Don’t forget to record the adjusting entries for the insurance and rent expired in February. 7. Nancy has provided 42 haircuts in February for customers with preloaded cards that she sold on February 14th. Hint: A portion of the unearned fees have been earned.
Journalize with the following instructions for Nancy's Salon
Feb. 1 Nancy paid cash for 60 bottles of shampoo/conditioner at $10/each. The bottles of
shampoo/conditioner are to be held for resale. Nancy uses the perpetual method. Nancy uses the FIFO method to account for inventory.
1 Purchased supplies on account, $500.
4 Paid cash for the utility bill received last month.
4 Collected cash from customers on account, $350.
6 Paid cash on the amount owed on account, $330.
12 Paid the hair stylist cash of $1,200. *Do not forget that a portion of the hair stylist’s
salaries were recorded as an expense at the end of January.
8 Sold 45 bottles of the shampoo/conditioner at a price of $30/bottle receiving cash.
10 Nancy paid cash for 50 bottles of shampoo/conditioner at $11/each. The bottles of
shampoo/conditioner are to be held for resale.
14 Nancy sold 30 preloaded haircut cards for $150/each. Each preloaded card entitles the holder to 10 haircuts. Hint: Nancy receives cash, but owes the service of providing
haircuts to the cardholders.
15 The salon provided haircuts to 295 customers that paid cash and 25 customers
that agreed to pay in the future. The price charged for the haircuts, $20.
24 Sold 41 bottles of the shampoo/conditioner at a price of $30/bottle receiving cash.
26 Paid the hair stylist cash of $1,200.
26 Purchased 30 bottles of shampoo/conditioner for $12/each on account. The bottles of shampoo/conditioner are to be held for resale.
27 Sold 29 bottles of the shampoo/conditioner at a price of $20/bottle receiving cash.
28 The salon provided haircuts to 278 customers that paid cash and 33 customers
that agreed to pay in the future. The price charged for the haircuts, $20.
28 Collected cash from customers on account, $960.
28 Nancy paid himself a salary of $3,800 and a dividend of $600 for the month of February.
ADJUSTMENT INFORMATION at February 28th, 2022
1. Record one month (for February) of
2. The hair stylist had worked for 2 days at $100 per day, but will not be paid until next month.
3. An inventory count of supplies revealed that $278 remains in supplies.
4. Utility bills that have been received but not paid totaled $386.
5. An inventory count of shampoo/conditioner reveals that 22 bottles remain in
inventory. Any lost inventory is recorded as cost of merchandise sold.
6. Don’t forget to record the
February.
7. Nancy has provided 42 haircuts in February for customers with preloaded cards that she sold on February 14th. Hint: A portion of the unearned fees have been earned.
Note:
Adjustments = $3,849
Adjusted Trial Balance = $75,216
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