Answer Happy

Requirement 1. Journalize the adjusting entry needed on December 31, the end of the current accounting period, for each of the independent cases affecting Woolton Corporation. Include an explanation for each entry. a. Details of the Prepaid Insurance account reveal a January 1 (beginning of the year) debit balance of $3,000 and a debit to the account on March 31 for $3,800 to record the payment of an annual insurance premium. At December 31, $1,300 is still prepaid. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Dec Date Dec 31 b. Woolton pays employees each Friday. The amount of the weekly payroll is $5,900 for a five-day work week. The current accounting period ends on a Wednesday. Journal Entry Accounts and Explanation Date Dec 31 Journal Entry Accounts and Explanation Debit 31 Debit c. Woolton has a note receivable. During the current year, Woolton has earned accrued interest revenue of $700 that it will collect next year. Journal Entry Accounts and Explanation Credit Debit Credit Credit Cases a. The details of Prepaid Insurance are as follows: Jan Prepaid Insurance 3,000 3,800 Mar 31 Woolton prepays insurance on March 31 each year. At December 31, $1,300 is still prepaid. 1 Bal b. Woolton pays employees each Friday. The amount of the weekly payroll is $5,900 for a five-day work week. The current accounting period ends on Wednesday. c. Woolton has a note receivable. During the current year, Woolton has earned accrued interest revenue of $700 that it will collect next year. d. The beginning balance of supplies was $2,800. During the year, Woolton purchased supplies costing $6,200, and at December 31 supplies on hand total $2,200. e. Woolton is providing services for Sea Lion Investments, and the owner of Sea Lion paid Woolton an annual service fee of $11,900. Woolton recorded this amount as Unearned Service Revenue. Woolton estimates that it has earned 70% of the total fee during the current year. f. Depreciation for the current year includes Office Furniture, $3,400, and Equipment, $6,200. Print - X Done
During the first month of operations, Johnson Services, Inc., completed the following transactions: (Click the icon to view the transaction data.) Read the requirements. May 7: Paid cash to acquire land, $32,000. Date May Date May Journal Entry Date May Accounts May 11: Performed services for a customer and billed the customer, $3,900. Johnson expects to collect within one month. Journal Entry May 16: Paid for the equipment purchased May 3 on account. Journal Entry Date May Accounts Accounts May 17: Paid for newspaper advertising, $540. Journal Entry Debit Accounts Debit Debit Credit Debit Credit Credit Credit
May 18: Received partial payment from customer on account, $1,800. Journal Entry Date May May 22: Received and paid the water and electricity bills, $370. Journal Entry Date May Accounts Date May Accounts Debit May 29: Received $2,700 cash for servicing the heating unit of a customer. Journal Entry Accounts Debit Debit Credit Credit Credit
Accounts Receivable. Supplies Equipment Land Accounts Payable Dividends Service Revenue Salary Expense Advertising Expense Utilities Expense
May 31 (a): Paid employee salaries, $1,700. Date May Date May Journal Entry May 31 (b): Declared and paid dividends of $1,600. Journal Entry Accounts Cash Accounts Debit Debit Credit Credit Requirement 2. Post the transactions to the T-accounts, using transaction dates as posting references. Determine the ending balance in each account. Review the journal entries prepared in previous steps. Common Stock
Accounts Payable Requirement 3. Prepare the trial balance of Johnson Services, Inc., at May 31 of the current year. Select the accounts that will appear in the trial balance. Then enter the account balances and total the debits and credits. Review the account balances prepared in a previous step. Johnson Services, Inc. Trial Balance May 31 Account Debit Utilities Expense Credit Total Requirement James Johnson, the manager, asks you how much in total resources the business has to work with, how much it owes, and whether May was profitable (and by how much). Total resources = Amount owed