Journalizing and Posting Closing Entries PANEL A Journalizing the Closing Entries Closing Entries Apr. 30 Service Revenue....... 7,400 Sales Revenue..... 10,500 Retained Earnings... 30 Retained Earnings........ Rent Expense... 17,900 14,025 1,000 Salary Expense Supplies Expense.. Utilities Expense..... Interest Expense. 11,900 300 Depreciation Expense-Furniture 275 400 150 (3) 30 Retained Earnings... Dividends.......... 3,200 3,200 144 Cash + Balance 3640 1400 Accounts Computers Receivable (net) 0 Accounts Note + + Supplies Land = + + Payable Payable 140 16800 11200 0 + + Salaries Interest Common Payable Payable Shares 0 0 5600 Retained + Earnings 5180 During June 202X, the business completed these transactions: June 1: Received a cash investment totalling $7700 in exchange for common shares. June 1: Purchased three computers. The company paid $3150 in cash and took out a bank loan of $8050 to cover the remaining balance owing. The loan bears interest of 5% to be paid on June 1, next year. The computers are expected to last 3 years. June 5: Paid $560 for the current month's office rent. June 9: The business was invoiced for a $5600 purchase of office supplies. June 13: Performed services for a client and received $12600. June 20: Declared and paid a cash dividend of $700. June 23: Received $420 from a customer that was billed last month. June 25: Paid $6300 of a bill received earlier in the month. June 30: Billed a client for services rendered, $8400. June 30: A physical count received that $1680 worth of supplies are still on hand. June 30: Paid $1260 for an advertising campaign that had been run during the month. Employee salaries were also accrued. Employees work 5 days each week and are paid $3500 in total every other Friday. The month ended on a Wednesday. Employees were last paid 2 weeks ormation: 1) In the past, Little Big Dog Inc. has used the following accounts on their income statement: Revenue, Depreciation Expense, Interest Expense, Rent Expense, Salaries Expense, Advertising Expense, and Supplies Expense. They use the Dividends account to record dividends. Not all accounts have been used each period.

Journalizing and Posting Closing Entries PANEL A Journalizing the Closing Entries Closing Entries Apr. 30 Service Revenue....... 7,400 Sales Revenue..... 10,500 Retained Earnings... 30 Retained Earnings........ Rent Expense... 17,900 14,025 1,000 Salary Expense Supplies Expense.. Utilities Expense..... Interest Expense. 11,900 300 Depreciation Expense-Furniture 275 400 150 (3) 30 Retained Earnings... Dividends.......... 3,200 3,200 144 Cash + Balance 3640 1400 Accounts Computers Receivable (net) 0 Accounts Note + + Supplies Land = + + Payable Payable 140 16800 11200 0 + + Salaries Interest Common Payable Payable Shares 0 0 5600 Retained + Earnings 5180 During June 202X, the business completed these transactions: June 1: Received a cash investment totalling $7700 in exchange for common shares. June 1: Purchased three computers. The company paid $3150 in cash and took out a bank loan of $8050 to cover the remaining balance owing. The loan bears interest of 5% to be paid on June 1, next year. The computers are expected to last 3 years. June 5: Paid $560 for the current month's office rent. June 9: The business was invoiced for a $5600 purchase of office supplies. June 13: Performed services for a client and received $12600. June 20: Declared and paid a cash dividend of $700. June 23: Received $420 from a customer that was billed last month. June 25: Paid $6300 of a bill received earlier in the month. June 30: Billed a client for services rendered, $8400. June 30: A physical count received that $1680 worth of supplies are still on hand. June 30: Paid $1260 for an advertising campaign that had been run during the month. Employee salaries were also accrued. Employees work 5 days each week and are paid $3500 in total every other Friday. The month ended on a Wednesday. Employees were last paid 2 weeks ormation: 1) In the past, Little Big Dog Inc. has used the following accounts on their income statement: Revenue, Depreciation Expense, Interest Expense, Rent Expense, Salaries Expense, Advertising Expense, and Supplies Expense. They use the Dividends account to record dividends. Not all accounts have been used each period.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter6: Receivables And Inventories

Section: Chapter Questions

Problem 6.2MBA: Allowance method Using transactions listed in £6-S. indicate the effects of each transaction on the...

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