Question 1The following transactions pertain to the Bongiorno Corporation's20x4 fiscal year:Jan 1The business was established by Joe Bongiorno whoinvested $100,000 cash in exchange for common shares.Signed a two-year lease for office space. The monthly rentis $3,000. The first month's rent was paid on Jan 2. Inaddition, a $5,000 security deposit was also paid to theJan 2landlord. This security deposit will be refundable onDecember 31, 20x5.Jan 15 Purchased $3,500 of supplies on account.Jan 30 Purchased office furniture costing $15,000 for cash.Jan 31 Purchased a two-year insurance policy at a cost of $3,840.The insurance policy takes effect on Feb 1.Feb 15 Paid for the supplies purchased on Jan 15. Feb 15 Paid for the supplies purchased on Jan 15.Dec 15 Received $4,500 from a customer for services to beprovided in January 20x5.Dec 31 Write the adjusting entry for the insurance expense.Dec 31 It is estimated that the furniture will be used for 10 years.Assume straight-line depreciation and no residual value.Dec 31 A count of supplies shows that there are $1,100 ofsupplies remaining.Required -Write journal entries to record all of the above transactions

Journal entries are used to keep track of financial transactions. To create a journal entry, you…

Question 1 The following transactions pertain to the Bongiorno Corporation's 20x4 fiscal year: Jan 1 The business was established by Joe Bongiorno who invested $100,000 cash in exchange for common shares. Signed a two-year lease for office space. The monthly rent is $3,000. The first month's rent was paid on Jan 2. In addition, a $5,000 security deposit was also paid to the Jan 2 landlord. This security deposit will be refundable on December 31, 20x5. Jan 15 Purchased $3,500 of supplies on account. Jan 30 Purchased office furniture costing $15,000 for cash.

Question 1 The following transactions pertain to the Bongiorno Corporation's 20x4 fiscal year: Jan 1 The business was established by Joe Bongiorno who invested $100,000 cash in exchange for common shares. Signed a two-year lease for office space. The monthly rent is $3,000. The first month's rent was paid on Jan 2. In addition, a $5,000 security deposit was also paid to the Jan 2 landlord. This security deposit will be refundable on December 31, 20x5. Jan 15 Purchased $3,500 of supplies on account. Jan 30 Purchased office furniture costing $15,000 for cash.

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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