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).