Reference no: EM132917253
Question - A - D. Brown Plumbing Co completed the following transactions during February of the current year:
Feb 1 Began a plumbing service company by investing $12,000 in cash and office equipment having a $5,000 fair value.
Feb 2 Purchased plumbing tools for $1,000 on account.
Feb 4 Completed dishwasher repair work for $900 on account.
Feb 8 Completed hot water tank repair work for $500 cash.
Feb 10 Paid for the items purchased on credit on February 2.
Feb 11 Purchased office supplies for $120, cash.
Feb 14 Paid $6,000 for the annual rent.
Feb 15 Completed plumbing repair work for $1,500 on account.
Feb 18 Received payment in full for the work completed on February 4.
Feb 27 D. Brown withdrew $200 cash from the business to pay personal expenses.
Feb 28 Paid the February utility bills, $100.
Feb 28 Paid $500 for an advertisement in the local newspaper.
Feb 28 Paid the office assistant wage of $900.
Required -
1) Prepare general journal entries to record the transactions, include a brief description for each entry. Note:All of your account names can be found in the general ledger template.
2) Post the February entries to the general ledger.
3) Prepare a trial balance at February 28, 20XX.
B. a) On December 2, $6,200 of supplies were purchased and recorded as an asset. A count revealed $1,000 still on hand at December 31.
b) Services performed during December but not yet billed to customers totalled $5,000.
c) Depreciation of equipment is recorded using the straight-line method over 10 years. The equipment was purchased December 1 of this year for $300,000 and has no residual value at the end of its useful life.
d) Prepaid insurance expired during the month of December was $2,500.
e) Accrued salaries at year-end were $10,000.
f) $2,000 of interest had accrued on the $75,000 note payable.
Required - Prepare general journal entries on December 31 of the current year to record the following unrelated year-end adjustments. There is a General Journal template provided that you can use to answer this question.