Prepare the journal entries for all the transactions(May and June) (including accruals)   May 1 – Hazel invested $50,000 of her own money in the business in exchange for common stock. May 1 – Hazel rented an office space for her business and paid $6,000 in advance for 6 months of rent. May 3 – Hazel purchased office supplies to use in the new office space. The supplies cost $975 and were paid for in cash. May 4 – Hazel purchased an advertisement in the local newspaper which also ran online. The ad cost $350 and was purchased on account. May 5 – Hazel purchased a new computer for the office. The computer cost $2,400 and was purchased on account. May 7 – Hazel received $1,000 in advance for services to be completed by the end of the month. May 12 – Hazel received $500 from a client for services provided. May 15 – Hazel hired an assistant to help her part time in the office. Hazel paid the assistant $850 for 2 weeks of wages. May 16 – Hazel received $2,600 for services provided to clients. May 17 – Hazel paid all the open accounts payable balances (for advertisement and computer). May 20 – Hazel purchased office supplies on account for $714. May 27 – Hazel received and paid the utility bill for May in the amount of $293. May 28 – Hazel received and paid the internet and phone bill for May in the amount of $187. May 29 – Hazel completed the work for the client who had paid in advance on May 7. May 31 – Hazel received $2,500 for services provided to clients for the second half of May. May 31 – Accruals that need entries for the month of May: The assistant is owed $620 for hours worked during the second half of May. Depreciation of $100 needs to be recorded for the month of May. Unbilled services for the month of May total $4,180. One month of prepaid rent expired. Supplies on hand at the end of the month total $1,165. June 1 – Hazel prepaid for insurance for the remaining 7 months of the year. The total premium paid was $1,680. June 1 - Hazel purchased a computer server for the office on account for $2,880. June 3 – Hazel paid $400 for an internet advertisement. June 4 – Hazel paid the assistant for the amount due for May wages. June 8 – Hazel received $7,500 in advance for services to be provided to clients. June 15 – Hazel paid for the supplies purchased on May 20. June 15 – Hazel decided to create a petty cash fund for the office. The amount deposited into the petty cash account was $500. June 16 – Hazel paid her assistant $775 for wages for the first two weeks of June. June 16 – Hazel billed clients a total of $3,683 for services provided during the first half of the month. June 17 – Hazel received $500 in partial payment of the amount billed to a client on May 31. The remaining $3,680 was determined to be uncollectible. Hazel uses the direct write method for uncollectible accounts.   June 18 – Hazel pays herself a dividend of $7,500. June 23 – Hazel created a step-by-step manual to sell to her clients. She produced the manual in the office to save on costs. She sells the manuals for $60 each. She sold a total of 5 manuals to date, and the state sales tax is 8%. Sales tax is to be remitted to the proper agencies next month. (Manuals are produced as requested, so there is no inventory to keep track of. Also, as the materials used are minimal and come out of existing office supplies, there is no need to record cost of goods sold.) June 27 - Hazel received and paid the utility bill for June in the amount of $312. June 28 – Hazel received and paid the internet and phone bill for June in the amount of $187. June 29 – Hazel received $1,950 for services provided to clients. June 29 – Hazel paid half of the open accounts payable balance. June 30– Accruals that need entries for the month of June: The assistant is owed $945 for hours worked during the second half of June. Depreciation of $100 needs to be recorded for the month of June for the computer purchased in May. The computer server is determined to have a useful life of 4 years, and a residual value of $200. Hazel decided to use the double-declining balance method for this equipment. Depreciation needs to be recorded for the one month that it was in service. (Hint: calculate the double-declining balance depreciation for the first year, then determine how much should be recorded for one month.) Unbilled services for the month of June total $1,585. One month of prepaid rent expired. One month of prepaid insurance expired. Supplies on hand at the end of the month total $265. Hazel had completed one half of the services she received prepayment for on June 8. The petty cash balance on June 30th is $327. Expenses include postage & shipping, $56; snacks and drinks for office (use supplies expense account), $82; miscellaneous expenses, $35.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
icon
Concept explainers
Question

Prepare the journal entries for all the transactions(May and June) (including accruals)

 

May 1 – Hazel invested $50,000 of her own money in the business in exchange for common stock.

May 1 – Hazel rented an office space for her business and paid $6,000 in advance for 6 months of rent.

May 3 – Hazel purchased office supplies to use in the new office space. The supplies cost $975 and were paid for in cash.

May 4 – Hazel purchased an advertisement in the local newspaper which also ran online. The ad cost $350 and was purchased on account.

May 5 – Hazel purchased a new computer for the office. The computer cost $2,400 and was purchased on account.

May 7 – Hazel received $1,000 in advance for services to be completed by the end of the month.

May 12 – Hazel received $500 from a client for services provided.

May 15 – Hazel hired an assistant to help her part time in the office. Hazel paid the assistant $850 for 2 weeks of wages.

May 16 – Hazel received $2,600 for services provided to clients.

May 17 – Hazel paid all the open accounts payable balances (for advertisement and computer).

May 20 – Hazel purchased office supplies on account for $714.

May 27 – Hazel received and paid the utility bill for May in the amount of $293.

May 28 – Hazel received and paid the internet and phone bill for May in the amount of $187.

May 29 – Hazel completed the work for the client who had paid in advance on May 7.

May 31 – Hazel received $2,500 for services provided to clients for the second half of May.

May 31 – Accruals that need entries for the month of May:

  • The assistant is owed $620 for hours worked during the second half of May.
  • Depreciation of $100 needs to be recorded for the month of May.
  • Unbilled services for the month of May total $4,180.
  • One month of prepaid rent expired.
  • Supplies on hand at the end of the month total $1,165.

June 1 – Hazel prepaid for insurance for the remaining 7 months of the year. The total premium paid was $1,680.

June 1 - Hazel purchased a computer server for the office on account for $2,880.

June 3 – Hazel paid $400 for an internet advertisement.

June 4 – Hazel paid the assistant for the amount due for May wages.

June 8 – Hazel received $7,500 in advance for services to be provided to clients.

June 15 – Hazel paid for the supplies purchased on May 20.

June 15 – Hazel decided to create a petty cash fund for the office. The amount deposited into the petty cash account was $500.

June 16 – Hazel paid her assistant $775 for wages for the first two weeks of June.

June 16 – Hazel billed clients a total of $3,683 for services provided during the first half of the month.

June 17 – Hazel received $500 in partial payment of the amount billed to a client on May 31. The remaining $3,680 was determined to be uncollectible. Hazel uses the direct write method for uncollectible accounts.  

June 18 – Hazel pays herself a dividend of $7,500.

June 23 – Hazel created a step-by-step manual to sell to her clients. She produced the manual in the office to save on costs. She sells the manuals for $60 each. She sold a total of 5 manuals to date, and the state sales tax is 8%. Sales tax is to be remitted to the proper agencies next month. (Manuals are produced as requested, so there is no inventory to keep track of. Also, as the materials used are minimal and come out of existing office supplies, there is no need to record cost of goods sold.)

June 27 - Hazel received and paid the utility bill for June in the amount of $312.

June 28 – Hazel received and paid the internet and phone bill for June in the amount of $187.

June 29 – Hazel received $1,950 for services provided to clients.

June 29 – Hazel paid half of the open accounts payable balance.

June 30– Accruals that need entries for the month of June:

  • The assistant is owed $945 for hours worked during the second half of June.
  • Depreciation of $100 needs to be recorded for the month of June for the computer purchased in May.
  • The computer server is determined to have a useful life of 4 years, and a residual value of $200. Hazel decided to use the double-declining balance method for this equipment. Depreciation needs to be recorded for the one month that it was in service. (Hint: calculate the double-declining balance depreciation for the first year, then determine how much should be recorded for one month.)
  • Unbilled services for the month of June total $1,585.
  • One month of prepaid rent expired.
  • One month of prepaid insurance expired.
  • Supplies on hand at the end of the month total $265.
  • Hazel had completed one half of the services she received prepayment for on June 8.
  • The petty cash balance on June 30th is $327. Expenses include postage & shipping, $56; snacks and drinks for office (use supplies expense account), $82; miscellaneous expenses, $35.
Expert Solution
Step 1

A journal entry is a form of accounting entry that is used to report a business transaction in a company's accounting records.

steps

Step by step

Solved in 3 steps with 5 images

Blurred answer
Knowledge Booster
Completing the Accounting Cycle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education