Reference no: EM133119778

Question - Bright Bulbs (a sole proprietorship run by Mr. Bright) had following transactions during its first ever quarter (ended March 31, 2021):

a) Jan 1- Mr. Bright invests $50,000 cash into his business.

b) Jan 7 - Mr. Bright buys inventory on account for $1,000. His supplier, A-Bulbs Corp, offers 1/15, n/30 terms.

c) Jan 22- Mr. Bright pays A-Bulbs Corp for the Jan 7 order.

d) Jan 31- Mr. Bright buys office supplies for $50 cash.

e) Feb 10- Mr. Bright makes a sale on account for $2,000- 3/10, n/20 terms offered. The inventory had cost him $500.

f) Feb 19- Mr. Bright receives cash for the Feb 10th sale.

g) Mar 1- Mr. Bright buys lightbulb shading equipment for $5,500 cash. It is expected to last 100 months with a salvage value of $500.

h) Mar 20- Mr. Bright buys inventory for $2,000 on account.

i) Mar 31- Mr. Bright withdraws $1,000 cash from the firm.

Required - Make adjusting entries for equipment and office supplies (no office supplies remain on Mar 31). Also, prepare closing entries for the quarter. Assume Mr. Bright closes out all possible accounts each quarter. Include brief descriptions. HINT: It might be easier to prepare some T-accounts first!