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On August 1, 2019, the account balances (beginning balance) of Walton Car repair workshop were as follows.
No. | Particulars | Debits Amount ($) | No | Particulars | Credit Amount($) |
101 | Cash | 4,880 | 154 | Accumulated Depreciation $ | 1,500 |
112 | Accounts Receivable | 3,520 | 201 | Accounts Payable | 3,400 |
126 | Supplies | 2,000 | 209 | Unearned Service Revenue | 1,400 |
153 | Store Equipment | 15,000 | 212 | Salaries Payable | 500 |
| | | 301 | Capital | 18,600 |
| Total= | 25,400 | | Total= | 25,400 |
During August the following summary transactions were completed.
August-8 | Paid $1,400 for salaries due employees, of which $900 is for August |
August-10 | Received $1,200 cash from customers on account. |
August-12 | Received $3,400 cash for services performed in August. |
August-17 | Purchased supplies on account $1,200. |
August-20 | Paid creditors $4,500 on account. |
August-29 | Received $650 from customers for future service |
Adjustment data consist of:
1. Supplies expense $2,000.
2. Accrued salaries payable $400.
3. Service provided but not recorded of $1,500
4. Unearned service revenue of $1,450 is earned.
Requirement:
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Journalize the August transactions.
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Give the four adjusting journal entries for the month August
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Prepare the following ledger accounts taking into account of the beginning balance-
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Cash
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Unearned Service Revenue
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Service Revenue
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Salary Expense
Answer & Explanation
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