Prepare adjusting journal entries for the items

Assignment Help Accounting Basics

Reference no: EM132970557

Part A

You are the Financial Accountant of ABC Ltd which is a small manufacturing company. Prepare journal entries to record the following transactions that occurred in June 2021: (Note: explanations on journal entries are NOT required)

(a) Issued common stock for cash, $15,000

(b) Purchased merchandise inventory on account. $9,200

(d) Received cash from a customer for an invoice issued in May 2021, $800

(e) Purchased supplies, on account, $1,800

(f) Billed customer after delivery of goods, $950

(g) Paid salaries to employees, $2,000

(h) Paid utility bill for May 2021, $100

(i) Paid one-year premium for an insurance policy, $300

(j) Received cash in advance from a customer for goods to be delivered in July 2021, $500

Part B

For ABC Ltd, you have also identified some items which require adjustments at the end of the month before preparation of financial statements. Prepare adjusting journal entries for the following items: (Note: explanations on adjusting journal entries are NOT required).

(a) Monthly depreciation on machineries, $17,500

(b) Advertising still prepaid was $2,200 at the end of month ($6,400 at start of month)

(d) Unearned rental revenue was $6,900 at the end of month ($8,900 at start of month)

(e) Interest receivable, but not received, on notes receivable, $1,200

Reference no: EM132970557

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