Ash Traynor opened a Pokèmon dress shop called PokèShoppe. During the first month of operations, the followingtransactions were completed. The following account titles are strictly to be used.Utilities ExpenseUnused Supplies Accounts PayableTraynor, CapitalTraynor, DrawingsCashPermits and LicensesPrepaid RentSewing EquipmentAccounts ReceivableAdvances to EmployeesSalaries ExpenseShop ToolsRepairs and MaintenanceFurniture and FixturesService IncomeLbe initi to2015Traynor invested the following in the dress shop: Cash, P30,000, a sewing machine appraised atP18,000, shop furniture appraised at P15,000, shop tools appraised at P7,500, an unused suppliesworth P2,500.Paid P18,000 as rent for the leased space for three months.Bought for cash: additional shop tools for P2,500 and supplies for P1,800.Bought from Kakuna Japan Surplus a second hand sewing machine for P6,000. Term: 20 days.Traynor increased her investment by putting in additional cash of P15,000.Delivered the order of Misty Lavahlavah, a customer. Billing price, PS,000.Paid the shop assistant for the one week salary, P3,600.Cash service income for the week P15,500.Collected in full the account of Misty Lavahlavah.Paid for the share of the business on the electric and telephone bills, P2,700.Paid the Town Treasurer PS50 for the permits and licenses.16 Purchased additional shop supplies (buttons, zippers, Velcro, pins, needles, thread, and other sewingFeb.2358r to1011121414accessories), for cash, P1,500.Paid the shop assistant for the one week salary, P3,600.Cash service income for the week, P13,500.Billed Brock Enroll, a customer, for delivered orders, P2,300.Paid P540 for the repairs and maintenance of the sewing machines.1718192022 Rework was done on the dress of Brock Enroll. Term: free.22Collected in full the account of Brock Enroll.Dawn E. Labadabango, a customer, made an advance payment of P18,000 for various dresses to bedelivered until the following month. Credited to Service Income.22ninara e ilo at tougo svi wn diwat l24Paid the shop assistant for the one week salary, P3,600.25Cash service income for the week, P8,700.Paid Kakuna Japan Surplus in full.2526Give the shop assistant a short-term loan of P2,000. Term: 30 days.Traynor brought home some shop supplies worth P1,300, for her personal use.28 Bought additional furniture worth P6,500 from TeamRocket Depot. Term: 30 days.28 Billings for newly delivered orders: Brock Enroll for P3,000, Misty Lavahlavah for P1,600.27Additional information as of February 28, 2015 are as follows:Out of the balance of the shop tools account, 70% is to be treated as an expense.b. Depreciations of Sewing Equipment, with an estimated useful life of 5 years and no residual value, andFurniture and Fixtures, with an estimated useful life of 5 years and no residual value, are computed with theuse of the straight line method. For the purpose of computing for the depreciation, the business decided toadopt the following policy: fixed assets acquired n the first half of the month (February 1-14) are depreciatedfor a full month; fixed assets acquired in the second half of the month are depreciated beginning the followingmonth.Accrued expenses at the end of the month:Salaries, P3,60od. Prepaid expenses at the end of the period.Rent, ?Half of the dresses ordered by Dawn E. Labadabango were already delivered.Income earned but not yet collected, P3,700.5% of the unadjusted balance of accounts receivable is doubtful of collection.C.Utilities, P2,700Supplies, P2,100e.f.Required:1. Prepare the adjusting entries2. Prepare the closing entries

Adjusting Entry – Adjusting Entries are the entries that make the accrual principle work for the…

Ash Traynor opened a Pokèmon dress shop called Pokeshoppe. During the first month of operations, the following s were completed. The following account titles are strictly to be used. transactions v Cash Unused Supplies Accounts Payable Utilities Expense Accounts Receivable Prepaid Rent Traynor, Capital Permits and Licenses Traynor, Drawings Service Income Salaries Expense Repairs and Maintenance Advances to Employees Sewing Equipment Shop Tools Furniture and Fixtures 2015 Traynor invested the following in the dress shop: Cash, P30,000, a sewing machine appraised at P18,000, shop furniture appraised at P15,000, shop tools appraised at P7,500, an unused supplies Feb. 2 worth P2,500. Paid P18,000 as rent for the leased space for three months. Bought for cash: additional shop tools for P2,500 and supplies for P1,B00. Bought from Kakuna Japan Surplus a second hand sewing machine for P6,000. Term: 20 days. Traynor increased her investment by putting in additional cash of P15,000. Delivered the order of Misty Lavahlavah, a customer. Billing price, PS,000. 3 Paid the shop assistant for the one week salary, P3,600. Cash service income for the week P15,500. 10 11 Collected in full the account of Misty Lavahlavah. Paid for the share of the business on the electric and telephone bills, P2,70o. Paid the Town Treasurer PSso for the permits and licenses. Purchased additional shop supplies (buttons, zippers, Velcro, pins, needles, thread, and other sewing accessories), for cash, P1,500. 12 14 14 16 Paid the shop assistant for the one week salary, P3,600. 18 Cash service income for the week, P13,500. 17 19 Billed Brock Enroll, a customer, for delivered orders, P2,300. 20 Paid PS40 for the repairs and maintenance of the sewing machines. Rework was done on the dress of Brock Enroll. Term: free. Collected in full the account of Brock Enroll. 22 Dawn E. Labadabango, a customer, made an advance payment of P18,000 for various dresses to be delivered until the following month. Credited to Service Income. 22 22 e llo at so svi dw l rl 24 Paid the shop assistant for the one week salary, P3,600. 25 Cash service income for the week, PR,700. 25 Paid Kakuna Japan Surplus in full. 26 Give the shop assistant a short-term loan of P2,000. Term: 30 days. 27 Traynor brought home some shop supplies worth P1,300, for her personal use. 28 Bought additional furniture worth P6,500 from TeamRocket Depot. Term: 30 days. 28 Billings for newly delivered orders: Brock Enroll for P3,000, Misty Lavahtavah for P1,600. Additional information as of February 28, 2015 are as follows: a. Out of the balance of the shop tools account, 70% is to be treated as an expense. b. Depreciations of Sewing Equipment, with an estimated useful ife of 5 years and no residual value, and Furniture and Fixtures, with an estimated useful life of 5 years and no residual value, are computed with the use of the straight line method. For the purpose of computing for the depreciation, the business decided to adopt the following policy: fixed assets acquired n the first half of the month (February 1-14) are depreciated for a full month; fixed assets acquired in the second half of the month are depreciated beginning the following month. C. Accrued expenses at the end of the month: Salaries, P3,600 d. Prepaid expenses at the end of the period. Rent, ? e Half of the dresses ordered by Dawn E. Labadabango were already delivered. 1. Income earned but not yet collected, P3,700. E S% of the unadjusted balance of accounts receivable is doubtful of collection. Utilities, P2,700 Supplies, P2,100 Required: 1. Prepare the adjusting entries 2. Prepare the closing entries

Ash Traynor opened a Pokèmon dress shop called Pokeshoppe. During the first month of operations, the following s were completed. The following account titles are strictly to be used. transactions v Cash Unused Supplies Accounts Payable Utilities Expense Accounts Receivable Prepaid Rent Traynor, Capital Permits and Licenses Traynor, Drawings Service Income Salaries Expense Repairs and Maintenance Advances to Employees Sewing Equipment Shop Tools Furniture and Fixtures 2015 Traynor invested the following in the dress shop: Cash, P30,000, a sewing machine appraised at P18,000, shop furniture appraised at P15,000, shop tools appraised at P7,500, an unused supplies Feb. 2 worth P2,500. Paid P18,000 as rent for the leased space for three months. Bought for cash: additional shop tools for P2,500 and supplies for P1,B00. Bought from Kakuna Japan Surplus a second hand sewing machine for P6,000. Term: 20 days. Traynor increased her investment by putting in additional cash of P15,000. Delivered the order of Misty Lavahlavah, a customer. Billing price, PS,000. 3 Paid the shop assistant for the one week salary, P3,600. Cash service income for the week P15,500. 10 11 Collected in full the account of Misty Lavahlavah. Paid for the share of the business on the electric and telephone bills, P2,70o. Paid the Town Treasurer PSso for the permits and licenses. Purchased additional shop supplies (buttons, zippers, Velcro, pins, needles, thread, and other sewing accessories), for cash, P1,500. 12 14 14 16 Paid the shop assistant for the one week salary, P3,600. 18 Cash service income for the week, P13,500. 17 19 Billed Brock Enroll, a customer, for delivered orders, P2,300. 20 Paid PS40 for the repairs and maintenance of the sewing machines. Rework was done on the dress of Brock Enroll. Term: free. Collected in full the account of Brock Enroll. 22 Dawn E. Labadabango, a customer, made an advance payment of P18,000 for various dresses to be delivered until the following month. Credited to Service Income. 22 22 e llo at so svi dw l rl 24 Paid the shop assistant for the one week salary, P3,600. 25 Cash service income for the week, PR,700. 25 Paid Kakuna Japan Surplus in full. 26 Give the shop assistant a short-term loan of P2,000. Term: 30 days. 27 Traynor brought home some shop supplies worth P1,300, for her personal use. 28 Bought additional furniture worth P6,500 from TeamRocket Depot. Term: 30 days. 28 Billings for newly delivered orders: Brock Enroll for P3,000, Misty Lavahtavah for P1,600. Additional information as of February 28, 2015 are as follows: a. Out of the balance of the shop tools account, 70% is to be treated as an expense. b. Depreciations of Sewing Equipment, with an estimated useful ife of 5 years and no residual value, and Furniture and Fixtures, with an estimated useful life of 5 years and no residual value, are computed with the use of the straight line method. For the purpose of computing for the depreciation, the business decided to adopt the following policy: fixed assets acquired n the first half of the month (February 1-14) are depreciated for a full month; fixed assets acquired in the second half of the month are depreciated beginning the following month. C. Accrued expenses at the end of the month: Salaries, P3,600 d. Prepaid expenses at the end of the period. Rent, ? e Half of the dresses ordered by Dawn E. Labadabango were already delivered. 1. Income earned but not yet collected, P3,700. E S% of the unadjusted balance of accounts receivable is doubtful of collection. Utilities, P2,700 Supplies, P2,100 Required: 1. Prepare the adjusting entries 2. Prepare the closing entries

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 12PA: Sewn for You had the following transactions in its first week of business. A. Jessica Johansen...

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