Reference no: EM132727809

Consumer Research Associates, owned by Gloria Johnson, is retained by large companies to test consumer reaction to new products. On January 31, 2019, the firm's worksheet showed the following adjustments data:

(a) supplies used, $4,680;

(b) expired rent, $26,000; and

(c) depreciation on office equipment, $9,160.

The balances of the revenue and expense accounts listed in the Income Statement section of the worksheet and the drawing account listed in the Balance Sheet section of the worksheet are given below:

REVENUE AND EXPENSE ACCOUNTS 401

Fees Income$200,000Cr. 511

Depr. Expense-Office Equipment 9,160Dr. 514

Rent Expense 26,000Dr. 517

Salaries Expense 99,000Dr. 520

Supplies Expense 4,680Dr. 523

Telephone Expense 2,700Dr. 526

Travel Expense 20,780Dr. 529

Utilities Expense 2,500Dr.

DRAWING ACCOUNT 302

Gloria Johnson, Drawing22,000Dr.

Required:

Problem 1: Record the adjusting entries in the general journal (transactions 1-3).

Problem 2: Record the closing entries in the general journal (transactions 4-7).