Accounting Posting Adjusting Entries To Appropriate Ledgers Homework Help
- November 4, 2017
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- Category: Accounting QA
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This is the problem that we have used as a demonstration in our lessons. The following is the post-closing trial balance showing the account balances as of April 30, 2004. Spring Garden Lawn Care Incorporated entered into the following transactions during the month of May.
Transactions for the month of May
1. Purchased office supplies on credit, $600.
2. Provided lawn care services to clients and received $16,000 in cash.
3. Provided lawn care services to clients on credit. Fees of $8,000 will be received in June.
4. Received $3,000 in cash from several clients in advance for services to be rendered in the future.
5. Paid $1,200 in cash for May advertising.
6. Paid $5,700 in cash for employee wages.
Instructions
1. Record the May transactions into a journal.
2. Post the transactions to T ledger accounts(Note: When you are posting transactions to the ledgers, make sure you start with account balances from post-closing trial balance. For example: What would happen to cash balance if you were to post $5000 debit? The cash balance would be: 25,300 +5,000=$30, 300)
3. Prepare a trial balance.
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4. Make adjusting entries for the following:
A1-mount of office supplies left as of May 31 is $700
A2-$1,700 of the unearned fees earned as of May 31
A3-Expired insurance for the month
A4-Expired rent for the month
A5-Depreciation of the building for the month
5. Post the adjusting entries to appropriate ledgers.
6. Prepare adjusted trial balance.
7. Prepare income statement, statement of retained earnings, and balance sheet. Make sure EACH transaction NUMBERED.
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