On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow.  DATE TRANSACTIONS July 1 Signed an agreement with Carter Corp. to provide accounting and tax services for one year at $5,900 per month; received the entire fee of $70,800 in advance.   1 Purchased office equipment for $17,000 from Office Outfitters; issued a two-month, 12 percent note in payment. The equipment is estimated to have a useful life of six years and a $1,160 salvage value. The equipment will be depreciated using the straight-line method.   Record the adjusting journal entries that must be made on July 31, 2019. 1) Record the adjustment for accounting fees earned. 2) Record the adjustment for interest on the note payable.       Date General Journal Debit Credit Jul 31, 2019

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On July 1, 2019, Tim Stein established his own accounting practice. Selected transactions for the first few days of July follow.
 

DATE TRANSACTIONS
July 1

Signed an agreement with Carter Corp. to provide accounting and tax services for one year at $5,900 per month; received the entire fee of $70,800 in advance.

  1

Purchased office equipment for $17,000 from Office Outfitters; issued a two-month, 12 percent note in payment. The equipment is estimated to have a useful life of six years and a $1,160 salvage value. The equipment will be depreciated using the straight-line method.

 

Record the adjusting journal entries that must be made on July 31, 2019.

1) Record the adjustment for accounting fees earned.

2) Record the adjustment for interest on the note payable.

 

 
 
Date General Journal Debit Credit
Jul 31, 2019      
       
       
       
       
       
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