Reference no: EM132638483
Question - Comprehensive Accounting Project
Team, you have been called in to help Sarah Singer who has operated a part-time graphic design business from her home. Her accountant has decided to quit working for her and Singer has decided she needs a more organized approach to keeping his accounting records. (Singer has kept his accounting records in a big file cabinet). Singer has decided to move to a rented office space and is planning to operate the business on a full-time basis. The business will be known as Sarah's Designs, Inc. Singer also has the following transactions that took place during the month of Sept 2019:
Sept 1. The following assets were received from Sarah Singer in exchange for common stock: Cash, $ 25,800; accounts receivable, $ 4,500; supplies, $2,500 and Office Equipment, $ 16,500. There were no liabilities received.
Sept 1. Paid three months' rent in advance on a lease rental contract, $3,600.
Sept 2. Paid the premiums on property and casualty insurance policies, $ 1,800. ( The policy is for six months)
Sept 4. Received cash from the Gaines Company as an advance payment for services to be provided and it will be recorded as unearned fees for $ 4,200.
Sept 5. Purchased a new computer on account from Brown's Computer Nook for $ 3,600. The useful life has been determined to be 5 years.
Sept 6. Received cash from clients on account for $ 2,600.
Sept 9. Paid cash to the Mason Tribune for a newspaper advertisement, $ 240.
Sept 12. Recorded services provided on account to various clients for the period of September 1 thru 12, for $ 5,700.
Sept 13. Paid Brown's Computer Nook for part of the liability incurred on Sept 5, $ 690.
Sept 14. Paid part-time receptionist for two weeks' salary, $ 1,100.
Sept 17. Paid cash for supplies, $ 1,000.
Sept 20. Purchased additional office equipment on account from Cabrillo Office Supply store for $ 2,650.
Sept 20. Recorded services provided on account to various clients for the period of Sept 13-20, $ 4,360.
Sept 24. Received cash from clients for fees earned during the period of Sept 17 thru 24, $ 6,100.
Sept 26. Received cash from clients on account from Sept 12 services, $ 2,200.
Sept 27. Paid part-time receptionist for two weeks salary, $ 1,100.
Sept 29. Paid telephone bill for September, $ 370.
Sept 29. Paid electricity bill for September, $ 515.
Sept 30. Recorded cash from clients for fees earned for the period of Sept 25-30, $ 3,450.
Sept 30. Recorded services provided on account for the remainder of Sept, $ 2,100.
Sept 30. Paid dividends of $ 2,500.
Possible adjustment data for Sarah's Designs, Inc. as of Sept 30, 2019:
1. Insurance expired during Sept is $300.
2. Supplies on hand on Sept 30 is $ 2,130.
3. Monthly depreciation of office equipment is $ 320.
4. Monthly depreciation of computer is $ 60
5. Rent expired during Sept is $1,200.
6. Accrued receptionist salary on Sept 30 is $ 200.
7. Unearned fees on Sept 30 is $ 3,600.
Required - Prepare the general journal entries for the above transactions.