State assumptions and answer accordingly.Assume December 31st year-end, unless otherwise stated.Assume all amounts are normal balances, unless otherwise stated.Jp holdings ending trial balance from july 31, 2000 is below. You were hired as the accountanton august 1 and your task is to complete the accounting cycle for the year end of august 30. Thecompany prepares adjusting journal entries monthly, which means the adjusting entries for julywere prepared properly by the former accountant.DebitCreditCash$ 8,660Accounts receivable7,440Supplies1,600EquipmentAccumulated depreciation-equipment30,000$ 3,000Accounts payable6,200Salaries payable1,400Unearned revenue800Common shares20,000Retained earnings16,300$47,700 $47.700During July, the following transactions were completed:Paid employees $2,200 for salaries due, of which $1,400 was for july salariespayable and $800 for august.June.6Received $5,400 cash from customers in payment of accounts.11Received $8,800 cash for services performed in august.12Issued common shares for $5,000 cash.17Purchased supplies on account, $2,000.21Paid creditors $7,000 of accounts payable due.24Paid July and August rent, $2,000 ($1,000 per month).25Paid salaries related to July, $2,200.26Performed services on account, $1,600.27Received $1,300 from customers for services to be performed in the future.28Declared and paid a cash dividend, $575.28Paid income tax for the month, $600.Data for July necessary for adjusting entries:1. Supplies on hand total $800.2. Accrued salaries payable are $1,600.3. Accrued service revenue for $600.4. The equipment has a useful life of 5 years and the company uses straight-linedepreciation.5. Unearned revenue of $800 has been earned.(a) Prepare the general journal entries to record the July transactions.(b) Set up T accounts, enter any opening balances, and post the general journal entries preparedin part (a).(c) Prepare an unadjusted trial balance at July 30.(d) Prepare and post the adjusting journal entries for the month.(e) Prepare an adjusted trial balance at July 30.(f) Prepare an income statement, a statement of changes in equity, and a balance sheet(g) Prepare the closing journal entries.

(a) Prepare the general journal entries to record the July transactions. (b) Set up T accounts, enter any opening balances, and post the general journal entries prepared in part (a). (c) Prepare an unadjusted trial balance at July 30.

(a) Prepare the general journal entries to record the July transactions. (b) Set up T accounts, enter any opening balances, and post the general journal entries prepared in part (a). (c) Prepare an unadjusted trial balance at July 30.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 13PA: Prepare adjusting journal entries, as needed, considering the account balances excerpted from the...

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