- You Make Adjusting Journal Entries For The Month Of January As Needed Start With Journal No Jan22 1 You Carefully C 1 (361.09 KiB) Viewed 71 times
- You Make Adjusting Journal Entries For The Month Of January As Needed Start With Journal No Jan22 1 You Carefully C 2 (208.56 KiB) Viewed 71 times
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200 Accounts PayableAccounts Payable
Accounts Payable (A/P)Accounts Payable
120 Accounts ReceivableAccounts Receivable
100 CheckingBank
500 Cost of Goods SoldCost Of Goods Sold
220 Prime Visa PayableCredit Card
300 Common StockEquity
345 DividendsEquity
350 Retained EarningsEquity
Opening Balance EquityEquity
610 Facility CostsExpense
611 Rent expenseSub-account of
Facility Costs
615 Utilities expenseSub-account
of Facility Costs
620 Labor CostsExpense
621 Salaries & wages
expenseSub-account of Labor Costs
622 Payroll tax expenseSub-account
of Labor Costs
623 Employee benefits
expenseSub-account of Labor Costs
625 Contract LaborSub-account of
Labor Costs
628 Staff relationsSub-account of
Labor Costs
630 Office and Tutoring CostsExpense
631 Office supplies
expenseSub-account of Office and Tutoring Costs
632 Tutoring supplies
ExpenseSub-account of Office and Tutoring Costs
639 Depreciation
expenseSub-account of Office and Tutoring Costs
640 Marketing CostsExpense
641 Advertising expenseSub-account
of Marketing Costs
645 Client Relations
ExpenseSub-account of Marketing Costs
641 Advertising expenseExpense
650 Taxes, Insurance, and Professional FeesExpense
651 Accounting and consulting fees
( 627 )Sub-account of Taxes, Insurance, and Professional Fees
651 Accounting and consulting
feesSub-account of Taxes, Insurance, and Professional Fees
653 Insurance expense ( 629
)Sub-account of Taxes, Insurance, and Professional Fees
653 Insurance expenseSub-account
of Taxes, Insurance, and Professional Fees
655 Business taxes ( 631
)Sub-account of Taxes, Insurance, and Professional Fees
655 Business taxesSub-account of
Taxes, Insurance, and Professional Fees
690 Other Costs ( 633 )Expense
690 Other CostsExpense
692 Gasoline expense ( 635
)Sub-account of Other Costs
692 Gasoline expenseSub-account of
Other Costs
695 Bank service charges ( 637
)Sub-account of Other Costs
695 Bank service
chargesSub-account of Other Costs
699 Miscellaneous expense ( 639
)Sub-account of Other Costs
699 Miscellaneous
expenseSub-account of Other Costs
AdvertisingExpense
Bank ChargesExpense
Commissions & feesExpense
Dues & SubscriptionsExpense
Education & TrainingExpense
InsuranceExpense
Legal & Professional FeesExpense
License ExpenseExpense
Meals and EntertainmentExpense
Office ExpensesExpense
PromotionalExpense
PurchasesExpense
Rent or LeaseExpense
Repair & MaintenanceExpense
Stationery & PrintingExpense
SuppliesExpense
Taxes & LicensesExpense
TravelExpense
Travel MealsExpense
Unapplied Cash Bill Payment ExpenseExpense
Uncategorized ExpenseExpense
UtilitiesExpense
180 Computer & Office EquipmentFixed Asset
185 Office FurnitureFixed Asset
189 Accumulated DepreciationFixed Asset
400 Tutoring RevenueIncome
405 Workshop RevenueIncome
420 Sales of Product IncomeIncome
Billable Expense IncomeIncome
Fees BilledIncome
Refunds-AllowancesIncome
Unapplied Cash Payment IncomeIncome
Uncategorized IncomeIncome
280 Note Payable - Richard SmithLong Term Liability
195 Security DepositOther Asset
125 Supplies On HandOther Current Asset
130 Inventory AssetOther Current Asset
135 Prepaid InsuranceOther Current Asset
136 Prepaid RentOther Current Asset
138 Other Prepaid ExpensesOther Current Asset
151 Undeposited FundsOther Current Asset
Prepaid ExpensesOther Current Asset
Uncategorized AssetOther Current Asset
240 Payroll Taxes PayableOther Current Liability
241 Employee Benefits PayableOther Current Liability
700 Interest expense ( 641 )Other Expense
700 Interest expenseOther Expense
MiscellaneousOther Expense
Penalties & SettlementsOther Expense
Reconciliation DiscrepanciesOther Expense
Interest EarnedOther Income
Other Portfolio IncomeOther Income
You make adjusting journal entries for the month of January as needed. (Start with Journal no. Jan22.1.) You carefully consider the following: • Math Revealed! used the straight-line method to determine depreciation expense for all office equipment. Monthly depreciation expense for the equipment purchased prior to 12/31 is $92.50. (Computer $75; Printer $10; Calculators $7.50) Math Revealed! purchased $726 of furniture on 1/3. You expect the furniture to last 4 years, with a $150 salvage value. You take a full month depreciation on the furniture. Two computers ($1,260) and three calculators ($441) were also purchased on 1/3. You expect the computers to have a 3-year life (no salvage value) and the calculators to have a 3-year life ($63 salvage value). You take a full month depreciation on the equipment. On 1/29, shelving was installed. The cost of the shelving was $820. You expect the shelving to last for the term of the lease (24 months). You estimate the salvage value at $100 at the end of the 2 years. You started using the shelving on February 1. You check the supplies on hand. You estimate that $120 of supplies were used during January. You charge the amount to a new account (Tutoring supplies expense, a sub-account of Office and Tutoring Costs). You use 632 as the account number and Other Business Expenses as the detail type. • The insurance policy premium paid in January was $360. The policy term is 1/1–12/31/22. • You check to make sure that all the revenue recorded in January was earned during the month. You realize that the $3,000 paid by Teacher's College on 1/27 was for a workshop to be held in February. You also take a look at INV-1009 to Annie Wang. Half of the $400 billed on 1/14 was for February tutoring.
• The insurance policy premium paid in January was $360. The policy term is 1/1–12/31/22. You check to make sure that all the revenue recorded in January was earned during the month. You realize that the $3,000 paid by Teacher's College on 1/27 was for a workshop to be held in February. You also take a look at INV-1009 to Annie Wang. Half of the $400 billed on 1/14 was for February tutoring. TIP: Consider whether you need a new account here. Choose an account number that fits with the account numbering scheme (assets are 100s; liabilities are 200s; revenues are 400s; expenses are 600s). • Martin has agreed to pay his father interest on the $2,500 loan to help get the business started. The last payment was made on 12/31/21. The annual interest rate (simple interest) on the loan is 6%. You forgot to pay him in January. You call and let him know that the check will come in February. TIP: Just because you didn't pay it in January doesn't mean you don't owe it in January. Consider whether you need a new account here. a