Completed the following transactions during its first month of operations. Use current month and current year.
Began operations by receiving from the owner $12,000 cash; office equipment valued at $23,000; photographic equipment valued at $45,000; and a vehicle valued at $17,500. The business gave Dallas Cowboys, the owner, capital in the business on the 1st.
1. Received a check for $12,000 from Tom Landry Country Club to photograph events held at the club over the next 12 months
2. Purchased insurance from Emmitt Smith Insurance, Inc.—$3,600 for 12 months
3. Paid $3,600 rent to Tony Dorsett Realty for 3 months rent
4. Purchased photographic supplies from Drew Pearson Camera Suppliers for $564 on account terms net 30
5. Received $1,635 cash for performing photography services
6. Purchased office equipment from Terrell Owens Equipment Co. for $3,500 on account
7. Paid miscellaneous expense for $18
8. Performed photography services on account for Ed “Too Tall” Jones; $1,500, due in 30 days
9. Received $1,828 cash for performing photography services
10.Paid Roger Staubach Oil Company $500
11.Borrowed $25,000 from Randy White National Bank as a 60-day, 10% note
12.Placed an ad in the Cowboys News Journal $450
13.Performed photography services on account—$4,200 for Aikman Energy Group
14.Received $4,978 cash for performing photography services
15.Purchased office supplies on account from Herschel Walker Inc. for $585
16.Jay Novacek Janitorial Co. provided services for $300.Paid cash
17.Purchased photographic camera equipment for $2,800, photographic supplies for $900 on account from Michael Irvin Camera Suppliers
18.Cowboys withdrew $3,500 for personal use
19.Purchased land from Deion Sanders Developers, Inc. for a tract of land for $9,500. Paid with check
20.Received $6,475 cash for performing photography services
21.Paid employee salaries of $4,200
22.Paid $822 toDallas Water Works & Power
23.Paid $564 to Drew Pearson Camera Supplies in payment of transaction #4
Adjust entries, last day of month.
1. Adjust unearned photographic service revenue for the month. Assume photographic revenue is earned evenly over the entire month (refer to transaction #1).
2. Expired insurance (refer to transaction #2)
3. Expired rent (refer to transaction #3)
4. Photographic supplies on hand at month end, $420
5. Office supplies on hand at month end, $200
6. Depreciation on photographic equipment for the month, $700
7. Depreciation on office equipment for the month, $500
8. Depreciation on vehicle for the month, $650
9. Salaries accrued at month end, $950
10.Accrue interest on note payable (refer to transaction #11, use a 360-day year).
Provide the following documents:
1. general journal
2. general ledger
3. trial balance
4. income statement
5. balance sheet
Describe how month-end or year-end closing is performed in Sage 50.(3/4 of a Page)
Due: 7/27/15
0 comments