Prepare the appropriate monthly adjusting journal entries

Reference no: EM132956775

Question

The owner of a lawn service company prepares MONTHLY financial statements.

The following information is available at the end of July, 2020. Prepare the appropriate MONTHLY adjusting journal entries for July 31, 2020. Show all backup calculations needed.

a) The annual insurance amounting to $ 1200 was purchased on July 1, 2020

b) The lawn service company's lawn tractor (equipment) was purchased for $ 3,200 at the beginning of 2019.

The value of the lawn tractor at the END of its estimated four year life was determined to be $ 800.

c) A customer paid for the entire summer's service in April The journal entry credited the Unearned service fees on April 1. The summer season is from April through to September (6 months) The total amount received was $ 720.

d) The last weekly salary of $ 1400 was paid to employees on Friday July 27. Employees are paid based on a five day workweek. Salaries for July 30 and July 31 will be paid in August.

e) Revenues of $ 1,800 were earned by July 31 but the payment has not yet been received. The customer is away and will pay in September.

Reference no: EM132956775

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