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prepare the august adjusting journal entries

On August 1,2021, the beginning of its current fiscal year, the following opening account balances, listed in alphabetical order, wer reported by Waterway Ltd. During August, the following summary transactions were completed. During August, the following summary transactions were completed. Aug. 1 Paid $440 cash for advertising in local newspapers. Advertising flyers will be included with newspapers delivered during August and September: (Hint: Use the Prepaid Advertising account.) 3 Paid August rent $390. (Hint: Use the Prepaid Rent account.) 6 Received $3,420 cash from customers in payment of accounts. 10 Paid \$2,990 for salaties due employees, of which $1,440 is for August and $1,550 is for July salaries payable. 13 Received $3,650 cash for services performed in August. 15 Purchased additional equipment on account $2,040. 17 Paid creditors $2,040 of accounts payable due. 22 Purchased supplies on account $820. 24 Paid salaries $2,760. 27 Performed services worth $4,910 on account and billed customers. 29 Received $820 from customers for services to be provided in the future. 31 Declared and paid a $550 dividend. Waterway records adjustments monthly. Adjustment data for the month of August are as follows: 1. One month's worth of advertising services have been received. 2. The August rent has expired. 3. Accrued salaries payable are $1,590. 4. Depreciation for the month is $184. 5. Supplies on hand at August 31 are $910. 6. Services were performed to satisfy $790 of Deferred revenue. 7. One month of interest income related to the $4,200 note receivable has accrued. The note was issued on June 30 and is due October 31 and has a 6% annual interest rate. Interest is due at maturity. 8. Income tax of $320 is estimated to be owed for the month of August. Prepare the August adjusting journal entries. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record joumal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit 1. Aug. 31 2. 31 3. 31 4. 31 5. 31 6. 31 6. 31 7. 31 8. 31

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