Mark Jacobs established Jacobs Services in August by contributing $30,000 cash from his personal savings to the business in exchange for 100% of the common stock. Jacobs Services had the following transactions in September. September 1Purchased equipment with a price of $15,000 by paying $5,000 cash and signing a note for the remaining balance. September 2Paid $2,400 cash for a oneyear (or 12month) premium toward insurance. September 3 Paid September rent of $3,000. September 5 Purchased $4,000 of supplies on credit. September 8Performed serviced and received $1,000 cash. September 10 Billed clients $8,500 for services performed. September 12 Received an advance of $3,000 cash from a client for a project to be delivered in November. September 18 Collected $8,500 cash from clients toward their accounts billed on September 10. September 24 Paid $4,000 for the supplies purchased on September 5. September 30 Paid $100 cash for newspaper advertising to be aired in October. September 30 Paid $5,000 September salaries. September 30 Billed clients $6,000 for services performed. September 30 Declared and paid cash dividends of $2,000. Required Record the effects of each using the financial statement effects template. 1. Shareholders contribute $ 1. Record the effects of each of above transactions for September using the financial statement effects template (note, some accounts have balances on September 1). 2. Continue in the FSET to record the effects of the following adjustments to the following accounts: insurance expense, supplies expense, depreciation expense and interest expense. Supplies still available on September 30 amount to $2,200. Depreciation on equipment for September was $300. The annual interest on the note is 6% and interest is paid when the note is due. 3. Record the about transactions for September using journal entries. 4. Set up Taccounts for the following accounts: cash, accounts receivable, supplies, prepaid insurance, prepaid ad, equipment, accumulated depreciation, accounts payable, unearned revenue, interest payable, notes payable, common stock, retained earnings, dividends, service revenue, rent expense, salaries expense, insurance expense, supplies expense, depreciation expense, and interest expense. Enter the balances at the as of August 31, if applicable. 5. Post the journal entries from Part 3 to the T-accounts set up in Part 4. 6. Prepare all necessary adjusting entries using the information in Part 2

Mark Jacobs established Jacobs Services in August by contributing $30,000 cash from his personal savings to the business in exchange for 100% of the common stock. Jacobs Services had the following transactions in September. September 1Purchased equipment with a price of $15,000 by paying $5,000 cash and signing a note for the remaining balance. September 2Paid $2,400 cash for a oneyear (or 12month) premium toward insurance. September 3 Paid September rent of $3,000. September 5 Purchased $4,000 of supplies on credit. September 8Performed serviced and received $1,000 cash. September 10 Billed clients $8,500 for services performed. September 12 Received an advance of $3,000 cash from a client for a project to be delivered in November. September 18 Collected $8,500 cash from clients toward their accounts billed on September 10. September 24 Paid $4,000 for the supplies purchased on September 5. September 30 Paid $100 cash for newspaper advertising to be aired in October. September 30 Paid $5,000 September salaries. September 30 Billed clients $6,000 for services performed. September 30 Declared and paid cash dividends of $2,000. Required Record the effects of each using the financial statement effects template. 1. Shareholders contribute $ 1. Record the effects of each of above transactions for September using the financial statement effects template (note, some accounts have balances on September 1). 2. Continue in the FSET to record the effects of the following adjustments to the following accounts: insurance expense, supplies expense, depreciation expense and interest expense. Supplies still available on September 30 amount to $2,200. Depreciation on equipment for September was $300. The annual interest on the note is 6% and interest is paid when the note is due. 3. Record the about transactions for September using journal entries. 4. Set up Taccounts for the following accounts: cash, accounts receivable, supplies, prepaid insurance, prepaid ad, equipment, accumulated depreciation, accounts payable, unearned revenue, interest payable, notes payable, common stock, retained earnings, dividends, service revenue, rent expense, salaries expense, insurance expense, supplies expense, depreciation expense, and interest expense. Enter the balances at the as of August 31, if applicable. 5. Post the journal entries from Part 3 to the T-accounts set up in Part 4. 6. Prepare all necessary adjusting entries using the information in Part 2

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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September 1Purchased equipment with a price of $15,000 by paying $5,000 cash and signing a note for the remaining balance.

September 2Paid $2,400 cash for a oneyear (or 12month) premium toward insurance.

September 3 Paid September rent of $3,000.

September 5 Purchased $4,000 of supplies on credit.

September 8Performed serviced and received $1,000 cash.

September 10 Billed clients $8,500 for services performed.

September 12 Received an advance of $3,000 cash from a client for a project to be delivered in November.

September 18 Collected $8,500 cash from clients toward their accounts billed on September 10.

September 24 Paid $4,000 for the supplies purchased on September 5.

September 30 Paid $100 cash for newspaper advertising to be aired in October.

September 30 Paid $5,000 September salaries.

September 30 Billed clients $6,000 for services performed.

September 30 Declared and paid cash dividends of $2,000.

Required

Record the effects of each using the financial

statement effects template.

1. Shareholders contribute $

1. Record the effects of each of above transactions for September using the financial statement effects template (note, some accounts have balances on September 1).

2. Continue in the FSET to record the effects of the following adjustments to the following accounts: insurance expense, supplies expense, depreciation expense and interest expense. Supplies still available on September 30 amount to $2,200. Depreciation on equipment for September was $300. The annual interest on the note is 6% and interest is paid when the note is due.

3. Record the about transactions for September using journal entries.

4. Set up Taccounts for the following accounts: cash, accounts receivable, supplies, prepaid insurance, prepaid ad, equipment, accumulated depreciation, accounts payable, unearned revenue, interest payable, notes payable, common stock, retained earnings, dividends, service revenue, rent expense, salaries expense, insurance expense, supplies expense, depreciation expense, and interest expense. Enter the balances at the as of August 31, if applicable.

5. Post the journal entries from Part 3 to the T-accounts set up in Part 4.

6. Prepare all necessary adjusting entries using the information in Part 2.

7. Post the adjusting journal entries prepared in Part 6 to the T-accounts set up in Part 4 (the postings from parts 5 have already been posted).

8. Prepare the income statement and statement of stockholders’ equity for month of September and the balance sheet as of September 30.

9. Prepare journal entries to close the temporary accounts.

10. Post the closing entries to the T-accounts set up in part 4 (the postings from parts 5 and 7 have already been posted).

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