Reference no: EM131289379
Prepare adjusting entries in the General Journal
October Transactions
October 1 the owner invested $40,000 cash in the business
October 1 purchased equipment for $15,000 on account.
October 1 purchased a 4-year insurance policy to insure the business for $2000
For cash.
October 2 Paid $2000 cash for supplies.
October 4 received $3,000 cash from customers for services rendered
October 14 Paid for the equipment purchase on October 1.
October 15 Paid wages $1,750
October 16 Performed services worth $4,500 for credit customers
October 20 Received $1,400 cash from customers previously billed on account
October 22 the owner withdrew $3,400 cash for personal use
October 31 Paid utility bill for October $500.
End of Month Adjustments—October 31
1. Assume that the equipment purchased on October 1 has no trade-in value and an expected life of 5 years. Prepare the adjusting entry for the month of October.
2. Prepare the adjusting entry for the insurance policy purchased on October 1 for the month of October.
3. After taking a physical count of the supplies, you discover that there are actually $1,400 of supplies left in the supply room. Prepare the adjusting entry for supplies for the month of October.
4. Wages for October 29 – 31 are unpaid at the end of the month. Normally, wages for a regular 5-day work week total $5,000. Prepare the adjusting entry for unpaid wages for the month of October.
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: Prepare adjusting entries in the General Journal. Assume that the equipment purchased on October 1 has no trade-in value and an expected life of 5 years. Prepare the adjusting entry for the month of October. Prepare the adjusting entry for the insura..
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