Prepare journal entries for each of the following transactions.
Performed services for customers on account $5,000.
Purchased $20,000 of equipment on account.
Received $3,000 from customers in transaction 1.
The owner, Mohammad Obayd, withdrew $1,000 cash for personal use.
Exercise 1 (Continued)
The ledger account balances for Elnoory Company are listed below.
Accounts Payable $ 8,000 Accounts Receivable 7,000
Cash 13,000 Elnoory, Capital 11,000
Elnoory, Drawing 4,000 Repair Revenue 40,000
Salaries Expense 25,000 Unearned Revenue 2,000
Utilities Expense 12,000
Prepare a trial balance in proper form for Elnoory at December 31, 2009.
Jane Kent, Capital
JANE KENT, CPA
May 31, 2009
___________________________ ___ ___________
Accounts Receivable 2,100
Accounts Payable $ 1,500
Unearned Revenue 3,500
Jane Kent, Capital 25,000
Service Revenue 3,300
Salaries Expense 2,000
Rent Expense 900
1.Prepaid Expenses.Expenses paid in cash and recorded as assets before they are used or consumed.
3. Accrued Revenues. Revenues earned but not yet received in cash or recorded.
4. Accrued Expenses. Expenses incurred but not yet paid in cash or recorded.
2. Unearned Revenues. Revenues received in cash and recorded as liabilities before they are earned.
Prepare adjusting entries for the following transactions. Omit explanations
Depreciation on equipment is $800 for the accounting period.
There was no beginning balance of supplies and purchased $500 of office supplies during the period. At the end of the period $80 of supplies were on hand.
Prepaid rent had a $1,000 normal balance prior to adjustment. By year end $600 was unexpired.
Exercise 3 (Continued)
Hans Albert Enterprises purchased computer equipment on May 1, 2009 for $4,500. The company expects to use the equipment for 3 years. What adjusting journal entry should the company make at the end of each month if monthly financials are prepared (annual depreciation is $1,500)? What is the book value of the equipment at May 31, 2009?
On January 1, Anita received a $9,000 cash retainer for legal services The full amount was credited to the liability account: Unearned Revenue.
Assuming that the revenue is earned ratably over the 3-month period, what adjustingjournal entry should be made at January 31?