Accounting Exercise 2
Transaction Cash Net Income
a) Purchased $100 of supplies for cash. -100 0
b) Recorded an adjusting entry to record use $20 of the above supplies. 0 -20
c) Made sales of $1,300, all on account. 0 1,300
d) Received $800 from customers in payment of their accounts. 800 0
e) Purchased equipment for cash, $2,500. -2,500 0
f) Recorded depreciation of building for period used, $600. 0 -600
a)
Adjusting entries on June 30
Debit
Credit
Supplies Expense
1280
Supplies on hand 1280
Utilities Expense
180
Utilities payable 180
Insurance Expense
240
Prepaid Insurance 240
Unearned Service Revenue
4100
Service Revenue 4100
Salaries and Wages Expense
1250
Salaries and Wages payable 1250
Depreciation Expense
250
Accumulated Depreciation—Equipment 250
Accounts Receivable
3900
Service Revenue 3900
b)
Gil Vagel
Adjusted Trial balance on June 30
Debit
Credit
Cash
6850
Accounts Receivable
10900
Prepaid Insurance
2640
Supplies
720
Equipment
15000
Accumulated Depreciation—Equipment 250
Accounts Payable 4230
Utilities payable 180
Salaries and Wages payable 1250
Unearned Service Revenue 1100
Common Stock 22000
Service Revenue 16300
Salaries and Wages Expense
5250
Rent Expense
2000
Supplies expense
1280
Utiliites Expense
180
Insurance Expense
240
Deprecation expense
250
45310
45310
C)
Supplies on hand
Utilities payable
2000
1280
180
Prepaid Insurance
Unearned Service Revenue
2880
240
4100
5200
Accumulated Depreciation—Equipment
Service Revenue
250
8300
4100
3900
Accounts Receivable
Salaries and Wages payable
7000
1250
3900
Supplies expense
1280
utilities expense
180
Insurance Expense
240
Salaries
a) Purchased $100 of supplies for cash. -100 0
b) Recorded an adjusting entry to record use $20 of the above supplies. 0 -20
c) Made sales of $1,300, all on account. 0 1,300
d) Received $800 from customers in payment of their accounts. 800 0
e) Purchased equipment for cash, $2,500. -2,500 0
f) Recorded depreciation of building for period used, $600. 0 -600
a)
Adjusting entries on June 30
Debit
Credit
Supplies Expense
1280
Supplies on hand 1280
Utilities Expense
180
Utilities payable 180
Insurance Expense
240
Prepaid Insurance 240
Unearned Service Revenue
4100
Service Revenue 4100
Salaries and Wages Expense
1250
Salaries and Wages payable 1250
Depreciation Expense
250
Accumulated Depreciation—Equipment 250
Accounts Receivable
3900
Service Revenue 3900
b)
Gil Vagel
Adjusted Trial balance on June 30
Debit
Credit
Cash
6850
Accounts Receivable
10900
Prepaid Insurance
2640
Supplies
720
Equipment
15000
Accumulated Depreciation—Equipment 250
Accounts Payable 4230
Utilities payable 180
Salaries and Wages payable 1250
Unearned Service Revenue 1100
Common Stock 22000
Service Revenue 16300
Salaries and Wages Expense
5250
Rent Expense
2000
Supplies expense
1280
Utiliites Expense
180
Insurance Expense
240
Deprecation expense
250
45310
45310
C)
Supplies on hand
Utilities payable
2000
1280
180
Prepaid Insurance
Unearned Service Revenue
2880
240
4100
5200
Accumulated Depreciation—Equipment
Service Revenue
250
8300
4100
3900
Accounts Receivable
Salaries and Wages payable
7000
1250
3900
Supplies expense
1280
utilities expense
180
Insurance Expense
240
Salaries