Instructions: The following transactions were completed in the month of March, 2
ID: 2462290 • Letter: I
Question
Instructions:
The following transactions were completed in the month of March, 20X3. Please use the appropriate accounts in the attached Chart of Accounts. Day 1 Khandan deposited $20,000 in a bank account in the name of the business. 1 Paid the rent for the 3 months, $2,100 1 Khandan invested her personal Hauling equipment, with a fair market value of $1,600 in the business. The equipment has a life expectancy of 5 years. 1 Purchased a used Truck on account from Jean Sales, for $2,160. The life expectancy of the trailer is 3 years. 1 Purchased a used Crane from Earth Equipment for $8,500, paying $4,000 in cash and placing the balance on account; the Crane has life expectancy of 4 years 10 Purchased Liability insurance for one year, $1,800 13 Sold landscaping services on account to Leah Corp., $1,225 13 Purchased supplies for $200, 40% was cash 14 Purchased supplies on account from Parra George, $2,500 15 Sold Landscaping services on account to Gloria Inc, $4,845 17 Received and paid the bill from Tonya Inc. for gas and oil for the equipment, $84 19 Sold landscaping services for cash to Jonathan Company, $2,700 22 Paid on account - Jean Sales, a creditor, $600 24 Received on account from Leah Corp, a customer, $500 28 Sold landscaping services on account to Rayna Corp., $1,626 29 Received and paid the telephone bill, $184 29 Received the utilities bill, $200 30 Paid the salary of the employee, $3,200 31 Khandan withdrew cash for her personal use, $1,300Explanation / Answer
Unadjusted Trial balance Adjusting Journal Entries Adjusted Trial Balance Income Statement Balance Sheet Dr Cr Dr Cr Dr Cr Dr Cr Assets Liabilities 101 Cash 9852 9852 9852 106 Accounts Receivable 7196 7196 7196 124 Office Supplies 2700 2700 2700 128 Prepaid Insurance 1800 108.5 for 22 days 1691.507 1691.507 131 Prepaid Rent 2100 700 1400 1400 153 Trucks 2160 2160 2160 154 Accumulated Depreciation - Trucks 60 (2160)/36( 3years) for 1 month 60 -60 167 Hauling Equipment 1600 1600 1600 168 Accumulated Depreciation - Hauling Equipment 26.67 1600/60 for 1 month 26.66666667 -26.67 173 Crane 8500 8500 8500 174 Accumulated Depreciation - Crane 177.08 8500/48 for 1 month 177.083 -177.083 201 Accounts Payable 8880 8880 8880 301 Khandan Miller - Capital 21600 21600 25955.76 302 Khandan Miller - Owner Withdrawals 1300 1300 0 401 Landscape Services 10396 10396 10396 611 Depreciation Expense - Trucks 60 60 60 612 Depreciation Expense - Hauling Equipment 26.67 26.67 26.66667 614 Depreciation Expense - Crane 177.08 177.08 177.0833 622 Salary Expense 3200 3200.00 3200 637 Insurance Expense 108.5 108.49 108.4932 640 Rent Expense 700 700 700 650 Office Supplies Expense 0 0 671 Gas & Oil Expense 84 84 84 688 Telephone Expense 184 184 184 690 Utility Expense 200 200 200 Net Profit 5655.8 Retained Earnings 40876 40876 1072.243 1072.243 41139.75 41139.75 10396 10396 34835.75 34835.76 According to the information given I have prepared unadjusted trial balance. There is no mention for which adjusting entries needs to be prepared But for prepaid rent and insurance we need to accure expenses for 1 month, for supplies and other information not provided Assuming the given information I am preparing all the coloumns Calcualtion Cash 9852 20000-2100-4000-1800+-(200*40%)-84+2700-600+500-184-3200-1300 Accounts Receivable 7196 1225+4845-500+1626 Office Supplies 2700 200+2500 Accumulated Depreciation - Trucks Accumulated Depreciation - Hauling Equipment Accumulated Depreciation - Crane Accounts Payable 2160+(8500-4000)+(200*60%)+2500-600+200 Khandan Miller - Capital 20000+1600 Landscape Services 1225+4845+2700+1626