Answer:
Step-by-step explanation: A. Prepare journal entries to record the January transactions.
Paid the monthly rental fee, $790.
Debit Credit
Rent Expense 790
Cash 790
Made the monthly payment to Apple Company, $1,700 in order to decrease Accounts Payable.
Debit Credit
Accounts Payable 1,700
Cash 1,700
Purchased additional repair supplies on credit from Pineapple Company, $1,820.
Debit Credit
Supplies 1,820
Accounts Payable 1,820
Received cash for repair service performed, $2,950.
Debit Credit
Service Revenue 2,950
Cash 2,950
Paid cash for an advertisement in the local newspaper, $370.
Debit Credit
Advertising Expense 370
Cash 370
Paid Pineapple Company on account, $1,200.
Debit Credit
Accounts Payable 1,200
Cash 1,200
Collected payment for repair fees earned, $7,460.
Debit Credit
Accounts Receivable 7,460
Cash 7,460
Recorded a dividend paid to stockholders, $8,100.
Debit Credit
Dividends 8,100
Cash 8,100
B. Using the following information, record adjusting entries in the general journal and prepare the T- accounts for all accounts
One month of rent has expired. The rental policy is valid in one year starting from the first day of November 20X0.
Debit Credit
Prepaid Rent 90
Rent Expense 90
The inventory of unused repair supplies is $1,520
Debit Credit
Supplies 1,520
Supplies Expense 1,520
The estimated depreciation on repair equipment is $350.
Debit Credit
Depreciation Expense 350
Accumulated Depreciation - Equipment 350
Accrued one-month interest expense on Note Payable that will be paid on February 1 (Borrowing Note was in 6-month; annual interest rate is 6%).
Debit Credit
Interest Expense 100
Interest Payable 100
Accrued salaries for 2 employees at the end of the month, payment for each person is $500
Debit Credit
Salaries Expense 1,000
Salaries Payable 1,000
Service Revenue still unearned at the end of the period is $3,675
Debit Credit
Unearned Service Revenue 3,675
Service Revenue 3,675
Service revenue earned but not billed is $1,800
Debit Credit
Service Revenue 1,800
Accounts Receivable 1,800
C. Prepare an adjusted trial balance from above T-accounts
Debit Credit
Cash 35,080
Accounts Receivable 63,080
Prepaid Rent 1,510
Supplies 1,300
Equipment 13,900
Accumulated Depreciation - Equipment 3,500
Accounts Payable 2,380
Notes Payable 16,100
Interest Payable 100
Salaries Payable 1,000
Unearned Service Revenue 3,675
Service Revenue 6,475
Rent Expense 870