Question

Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019,...

Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019, the first month of operations, is shown below.

End-of-the-month adjustments must account for the following items:

Supplies were purchased on January 1, 2019; inventory of supplies on January 31, 2019, is $1,050.

The prepaid advertising contract was signed on January 1, 2019, and covers a four-month period.

Rent of $1,550 expired during the month.

Depreciation is computed using the straight-line method. The equipment has an estimated useful life of 10 years with no salvage value.

Required:

Complete the worksheet for the month.

Prepare an income statement, statement of owner’s equity, and balance sheet. No additional investments were made by the owner during the month.

Journalize and post the adjusting entries.

Analyze
If the adjusting entries had not been made for the month, would net income be overstated or understated?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The Trial balance is not provided in the question. However, as per the remaining information provided adjustment journal entries are as follows:-

Journal Entry in the Books of Judge Creative Designs (Amount in $)
Name of Account & Description Debit Credit
Jan-31 Supplies Expenses A/c ***
Supples A/c ***
(To supplies used)
Jan-31 Advertisement Expenses A/c ***
Prepaid Advertising Contract A/c ***
(To expenses allocated )
Jan-31 Rent Expenses A/c 1550
Prepaid Rent A/c 1550
(To expenses allocated)
Jan-31 Depreciation Expenses A/c ***
Accumulated Dep.-Equipment ***
(To Depreciation expenses recorded)
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On December 31, 2019, the Notes Payable account at Northwood Manufacturing Company had a balance of...
On December 31, 2019, the Notes Payable account at Northwood Manufacturing Company had a balance of $15,500. This balance represented a three-month, 9 percent note issued on November 1. On January 2, 2019, Hitech Computer Consultants purchased flash drives, paper, and other supplies for $6,020 in cash. On December 31, 2019, an inventory of supplies showed that items costing $1,540 were on hand. The Supplies account has a balance of $6,020 On September 1, 2019, North Dakota Manufacturing paid a...
CREATE JOURNAL ENTRIES FOR THE JANUARY 2018 TRANSACTIONS BELOW FOR SUNFLOWER DESIGNS: On January 1, a...
CREATE JOURNAL ENTRIES FOR THE JANUARY 2018 TRANSACTIONS BELOW FOR SUNFLOWER DESIGNS: On January 1, a 24-month liability insurance policy was purchased to cover Sunflower Designs. The full cost of the policy, $1,800, was paid in cash on the same date. . CREATE ADJUSTING JOURNAL ENTRIES FOR JANUARY 31, 2018: Record the adjusting entry to record the use of the prepaid insurance coverage in January. The amount of the expired insurance coverage was $200. The previous months’ adjusting entries were...
Dorsey Company’s partial worksheet for the month ended March 31, 2019, is shown below. Open the...
Dorsey Company’s partial worksheet for the month ended March 31, 2019, is shown below. Open the owner’s capital account (account number 301) in the general ledger and record the March 1, 2019, balance of $35,500 shown on the worksheet. INCOME STATEMENT BALANCE SHEET ACCOUNT NAME DEBIT CREDIT DEBIT CREDIT Cash 9,200 Accounts Receivable 12,400 Supplies 4,850 Equipment 33,500 Accum. Depr. - Equip. 11,400 Accounts Payable 10,200 N. Dorsey, Capital 35,500 N. Dorsey, Drawing 3,700 Fees Income 25,800 Salaries Expense 14,100...
A partial worksheet for the month ended March 31, 2019 is shown below. No additional owner...
A partial worksheet for the month ended March 31, 2019 is shown below. No additional owner investments were made during the month.    INCOME STATEMENT BALANCE SHEET ACCOUNT NAME DEBIT CREDIT DEBIT CREDIT   Cash 10,700   Accounts Receivable 14,400   Supplies 7,200   Equipment 33,400   Accum. Depr.—Equip. 9,700   Accounts Payable 9,850 Amy Zimmer, Capital 40,500 Amy Zimmer, Drawing 3,700   Fees Income 31,800   Salaries Expense 15,600   Rent Expense 2,700   Supplies Expense 1,450   Depr. Exp.—Equip. 2,700   Totals 22,450 31,800 69,400 60,050   Net Income 9,350 9,350...
URGENT!!! The trial balance for Pioneer Advertising is shown below. Pioneer Advertising Trial Balance October 31,...
URGENT!!! The trial balance for Pioneer Advertising is shown below. Pioneer Advertising Trial Balance October 31, 2017 Debit Credit Cash $ 15,200 Supplies 2,500 Prepaid Insurance 600 Equipment 5,000 Notes Payable $ 5,000 Accounts Payable 2,500 Unearned Service Revenue 1,200 Owner’s Capital 10,000 Owner’s Drawings 500 Service Revenue 10,000 Salaries and Wages Expense 4,000 Rent Expense 900 $28,700 $28,700 You are provided with the following adjustment data. 1. Supplies on hand at October 31 total $300. 2. Expired insurance for...
The trial balance for Pioneer Advertising is shown below. Wildhorse Advertising Trial Balance October 31, 2017...
The trial balance for Pioneer Advertising is shown below. Wildhorse Advertising Trial Balance October 31, 2017 Debit Credit Cash $14,000 Supplies 2,500 Prepaid Insurance 600 Equipment 5,000 Notes Payable $5,000 Accounts Payable 2,300 Unearned Service Revenue 1,300 Owner’s Capital 7,200 Owner’s Drawings 400 Service Revenue 10,900 Salaries and Wages Expense 3,400 Rent Expense 800 $26,700 $26,700 Assume the following adjustment data. 1. Supplies on hand at October 31 total $300. 2. Expired insurance for the month is $200. 3. Depreciation...
E3-11 A partial adjusted trial balance of Frangesch Company at January 31, 2017, shows the following....
E3-11 A partial adjusted trial balance of Frangesch Company at January 31, 2017, shows the following. FRANGESCH COMPANY Adjusted Trial Balance January 31, 2017 ​ Debit ​ Credit Supplies ​$ 850 ​ Prepaid Insurance ​2,400 ​ Salaries and Wages Payable ​​$ 920 Unearned Service Revenue ​​750 Supplies Expense ​950 ​ Insurance Expense ​400 ​ Salaries and Wages Expense ​2,900 ​ Service Revenue ​​2,000 Instructions Answer the following questions, assuming the year begins January 1. (a) If the amount in Supplies...
Danos Company’s partial worksheet for the month ended December 31, 2019, is shown below. Open the...
Danos Company’s partial worksheet for the month ended December 31, 2019, is shown below. Open the owner’s capital account (account number 301) in the general ledger and record the December 1, 2019, balance of $72,000 shown on the worksheet. INCOME STATEMENT BALANCE SHEET ACCOUNT NAME DEBIT CREDIT DEBIT CREDIT Cash 21,000 Accounts Receivable 23,600 Supplies 9,800 Equipment 64,000 Accum. Depr. - Equip. 21,600 Accounts Payable 19,800 D. Danos, Capital 72,000 D. Danos, Drawing 6,800 Fees Income 50,800 Salaries Expense 28,400...
The unadjusted trial balance of Devlin Collection Service for the year ending December 31, 2019 appears...
The unadjusted trial balance of Devlin Collection Service for the year ending December 31, 2019 appears below. No adjusting entries have been made during the current year.                                                                  Debit          Credit Cash                                                          $6,000        Accounts receivable                                           10,000        Prepaid insurance                                         4,000        Office supplies                                                       2,000 Equipment                                                 ,20,000        Accumulated amortization                                                    $5,000 Salaries payable              Interest payable             Unearned service revenue                                                        4,000 Note payable                                                                         10,000 Ted Danvon, capital                                                                15,800 Ted Danvon, withdrawals                                        1,000 Service revenue                                                                     32,600 Salaries expense                                        18,000        Amortization expense              Rent expense                                                       6,000         Insurance expense          Office supplies expense            Interest expense                                           400                                                                                                               $67,400             $67,400 Complete on next page a) A count revealed that $1,800 of...
The trial balance for Pioneer Advertising is shown below. Pharoah Advertising Trial Balance October 31, 2017...
The trial balance for Pioneer Advertising is shown below. Pharoah Advertising Trial Balance October 31, 2017 Debit Credit Cash $16,000 Supplies 2,800 Prepaid Insurance 500 Equipment 4,900 Notes Payable $4,800 Accounts Payable 3,000 Unearned Service Revenue 1,100 Owner’s Capital 10,300 Owner’s Drawings 600 Service Revenue 10,600 Salaries and Wages Expense 4,100 Rent Expense 900 $29,800 $29,800 Assume the following adjustment data. 1. Supplies on hand at October 31 total $600. 2. Expired insurance for the month is $300. 3. Depreciation...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT