Wilfred opened Wilfred Construction Service Company on January 1, 2019. During January the following transactions were completed. Jan 1 Shareholders invested $14,000 cash in the business in exchange for ordinary shares. 1 Borrowed $10,000 cash from Standard Bank by issuing a 3-month 12% notes payable for the balance, with all interests and the balance to be settled on maturity. (7)* 2 Purchased equipment for $15,000, paying $5,000 cash down payment with the remaining balance on account. eredt Pay Cash aHo0 Pvepai'sd i 4 Purchased supplies for $1,250 on account. 5 Paid $2,400 cash on one-year insurance policy effective Jan 1. (8)* 6 Received $5,000 cash from a customer, in advance for construction services to be performed in a project. 10 Billed customers $4,280 for construction services performed. 15 Paid $2,240 cash for employee salaries. 21 Collected from customers billed on Jan 10 in full. 24 Billed customers $5,920 for construction services performed. 27 Paid $1,300 for employees' travel. 28 Paid $1,200 for rent of January 2019 and $230 for miscellaneous expense. 29 Paid $3,900 to settle accounts payable. 31 Declared and paid a $600 cash dividend. The chart of accounts for Wilfred Construction Service Company contains the following accounts: Cash Accounts Receivable Share Capital-Ordinary Dividends Service Revenue Salaries Expense Travel Expense Rent Expense Miscellaneous Expense Supplies Expense Depreciation Expense Interest Expense Insurance Expense Income Tax Expense Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Interest Payable Income Tax Payable Notes Payable Accounts Payable Unearned Service Revenue 1 Instructions (a) Journalize the January transactions. (c) Refer to the transaction information marked (7) and (8) in the question and the following information, journalize adjusting entries for the month of January 2019 the adjusted trial balance at January 31: (b) Prepare a trial balance at January 31. 2. Equipment worth $15,000 has a useful life of 10 years, to be depreciated using straight line method. and prepare 1. Supplies on hand as at 31 January total $500. 4. For the service fee received in adyance on 6 January, the project is 50% complete as of 31 January. 3. Services performed but unbilled at January 31 total $1,080. unpaid employee salaries were $1,220. 5. Accrued but 6. The company's CPA estimates that income taxes expense for January is $2,000. 105 COICHUL obx aYRERU4AOICE 230 T QM T 2 Sm8 Decipg Detce ELrous VD 801 0 00! P saloval In Tio Due c a 299 2/ 100 00 kon toL loan 2

Wilfred opened Wilfred Construction Service Company on January 1, 2019. During January the following transactions were completed. Jan 1 Shareholders invested $14,000 cash in the business in exchange for ordinary shares. 1 Borrowed $10,000 cash from Standard Bank by issuing a 3-month 12% notes payable for the balance, with all interests and the balance to be settled on maturity. (7)* 2 Purchased equipment for $15,000, paying $5,000 cash down payment with the remaining balance on account. eredt Pay Cash aHo0 Pvepai'sd i 4 Purchased supplies for $1,250 on account. 5 Paid $2,400 cash on one-year insurance policy effective Jan 1. (8)* 6 Received $5,000 cash from a customer, in advance for construction services to be performed in a project. 10 Billed customers $4,280 for construction services performed. 15 Paid $2,240 cash for employee salaries. 21 Collected from customers billed on Jan 10 in full. 24 Billed customers $5,920 for construction services performed. 27 Paid $1,300 for employees' travel. 28 Paid $1,200 for rent of January 2019 and $230 for miscellaneous expense. 29 Paid $3,900 to settle accounts payable. 31 Declared and paid a $600 cash dividend. The chart of accounts for Wilfred Construction Service Company contains the following accounts: Cash Accounts Receivable Share Capital-Ordinary Dividends Service Revenue Salaries Expense Travel Expense Rent Expense Miscellaneous Expense Supplies Expense Depreciation Expense Interest Expense Insurance Expense Income Tax Expense Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equipment Interest Payable Income Tax Payable Notes Payable Accounts Payable Unearned Service Revenue 1 Instructions (a) Journalize the January transactions. (c) Refer to the transaction information marked (7) and (8) in the question and the following information, journalize adjusting entries for the month of January 2019 the adjusted trial balance at January 31: (b) Prepare a trial balance at January 31. 2. Equipment worth $15,000 has a useful life of 10 years, to be depreciated using straight line method. and prepare 1. Supplies on hand as at 31 January total $500. 4. For the service fee received in adyance on 6 January, the project is 50% complete as of 31 January. 3. Services performed but unbilled at January 31 total $1,080. unpaid employee salaries were $1,220. 5. Accrued but 6. The company's CPA estimates that income taxes expense for January is $2,000. 105 COICHUL obx aYRERU4AOICE 230 T QM T 2 Sm8 Decipg Detce ELrous VD 801 0 00! P saloval In Tio Due c a 299 2/ 100 00 kon toL loan 2

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 16EA: Discuss how each of the following transactions for Watson, International, will affect assets,...

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