The JACBRIELLAND Services Company was formed on May 1, 2017. The following transactions took Place...
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The JACBRIELLAND Services Company was formed on May 1, 2017.
The following transactions took Place during the first month.
Transactions on May 1:
Carl Stanger invested $60,000 cash in the company and Joe Regan invested $13,000 cash and a truck with a fair value of $8500 from Russ Murphy. The business issued Stanger 100 shares of common stock and Regan 50 shares of common stock in exchange for their contribution
Hired two employees to work in the warehouse. They will each be paid a salary of $2,750 biweekly. (works Monday Friday) employees are paid on Friday following the Monday Friday 2 weeks
Hired an office manager at $550 weekly (Works Monday Friday). Office manager is paid on the 1st and last day of the month
Signed a 2-year rental agreement on a warehouse; for $34,000 annually and Paid cash in advance for the first six months
Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.
Paid $750 cash for a one-year insurance policy on the furniture and equipment.
Paid $1,000 for a one-year insurance policy on the truck
Paid 2,750 annual insurance on the rented warehouse
Transactions during the remainder of the month of May
2 Completed a large delivery job, billed the customer, $4,000
3 Purchased basic office supplies for $ 1,500 cash.
4 Obtained a loan for $25,000 to make repairs to the warehouse, work will begin before the end of the month, interest rate 4%
5 Purchased Advertisement in the local newspaper for weekly ads, for 4 months - $8,000
7 Purchased more office supplies for $750 on account.
9 Received utility bills in the amount of $380, to be paid next month.
11 Signed a contract for services to be performed this month and over the next 3 months 6700
11 Hired a Cleaning service for cleaning office and warehouse on Thursdays, $200 weekly
14 Purchased fuel for the truck, paying $150 on account
15 Paid $400 to suppliers for accounts payable due.
15 Received $3,000 from customers in payment of accounts receivable.
15 Paid Office managers salary
15 Purchased cleaning supplies on account for 5 months - $1,250
17 Collected $2,200 in advance for services to be performed later
17 Received Mobile Phone Invoice- $ 400 to be paid in 20 days
18 Total revenues earned were $20,000$8,000 cash and $12,000 on account.
18 Paid the monthly salaries of the two warehouse employees, totaling $6,100.
19 Performed delivery services on account, $1,400.
19 The warehouse staff has worked extra hard will reward them with a bonus of $75 each, payable next month
21 Purchased fuel on account for $185
22 Performed services for a customer and received $2,200 cash.
25 Truck repairs - $350
28 Collected $3,300 cash from customer on account
31 Paid $150 on account.
31 Cash dividends of $2,500 were paid to each stockholder .
Adjustment data:
Depreciation is recorded on the truck using the straight-line method of $3,000 annually.
Depreciation on Equipment is $4,285 annually.
Prepaid insurances for the month have expired.
Office Supplies on hand, $850.
Unearned Revenue earned during the month, $875
Accrued Service Revenue, $450.
Cleaning supplies used - $75
REQUIREMENTS ( use the calendar May 2018 below)
Record Journal entries for the above transactions (Include explanations.)
Post the journal entries to T-accounts.
Prepare an unadjusted trial balance as of May 31, 2018.
Prepare a worksheet as of May 31, 2018
Journalize the adjusting entries using the following adjustment data and also by reviewing the journal entries prepared in Requirement A.
Post adjusting entries to worksheet and T-accounts
Prepare an adjusted trial balance as of May 31, 2018
Prepare the JACBRIELLAND Service Company s FINANCIAL STATEMENTS FOR- May 31, 2018
income statement for the month
statement of retained earnings for the month
and the classified balance sheet on that date.
On the income statement, list expenses in decreasing order by amountthat is, the largest expense first, the smallest expense last.
Journalize the closing entries, and post to the T-accounts
