Q.03: Discuss the types of adjusting entries and need for adjusting entries. Q.04: On December 1st Curt Williamson began an auto repair shop, Williamsons Quality Automotive. The following information about December’s transactions, accounts, and adjustment data is available. Transactions: Dec. 1 Williamson contributed $50,000 cash to the business in exchange for capital. 1 Purchased $10,800 of equipment paying cash. 1 Paid $4,500 for a 9-month insurance policy starting on December 1. 9 Paid $18,000 cash to purchase land to be used in operations. 10 Purchased office supplies on account, $3,000. 19 Borrowed $28,000 from the bank for business use. Williamson signed a note payable to the bank in the name of the business. 22 Paid $800 for advertising expenses. 26 Paid $1,000 on account. 28 The business received a bill for utilities to be paid in January, $280. 31 Revenues earned during the month included $17,500 cash and $2,700 on account. 31 Paid employees' salaries $3,600 and building rent $700. Record as a compound entry. 31 The business received $1,440 for auto screening services to be performed next month.
Q.03: Discuss the types of
Q.04: On December 1st Curt Williamson began an auto repair shop, Williamsons Quality Automotive. The following information about December’s transactions, accounts, and adjustment data is available.
Transactions:
Dec. 1 Williamson contributed $50,000 cash to the business in exchange for capital.
1 Purchased $10,800 of equipment paying cash.
1 Paid $4,500 for a 9-month insurance policy starting on December 1.
9 Paid $18,000 cash to purchase land to be used in operations.
10 Purchased office supplies on account, $3,000.
19 Borrowed $28,000 from the bank for business use. Williamson signed a note payable to the bank in the name of the business.
22 Paid $800 for advertising expenses.
26 Paid $1,000 on account.
28 The business received a bill for utilities to be paid in January, $280.
31 Revenues earned during the month included $17,500 cash and $2,700 on account.
31 Paid employees' salaries $3,600 and building rent $700. Record as a compound entry.
31 The business received $1,440 for auto screening services to be performed next month.
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