Reference no: EM132921860
Question -
1. Record the following transactions in the journal and the T-accounts:
Jan. 1: Bob Smith invested 30,000 dollars in his new company Bob's Store.
Jan. 2: Bob's store paid 12,000 dollars in advance for the rent of the first year.
Jan. 2: Bob's store paid 1,000 dollars for the utilities bill.
Jan. 3: Bob's store signed a contract with a snow removal company to clean the front of the store in the winter and paid 2,000 dollars in advance.
Jan. 4: Bob's store sold services for 5,000 dollars and got cash.
Jan. 5: Bob's store sold services for 2,000 dollars and the client agreed to pay in the near future.
Jan. 6: Bob's store bought supplies for 2,000 dollars with cash.
Jan. 7: Bob's store purchased a machine for 10,000 dollars.
Jan. 7: Bob's store got a loan from the bank for 50,000 dollars.
Jan. 8: Bob's store bought a delivery truck for 40,000 dollars, 30,000 were paid in cash and the rest will be paid in the future.
Jan. 9: Bob's store paid wages to the employees for 1,000 dollars.
Jan. 10: Bob Smith withdrew 2,000 dollars for his personal use.
Jan. 12: Bob 's store signed a contract to provide services for 50 dollars per hour with a client.
Jan. 15: Bob's store purchased an insurance policy for 3,600 for 12 months using cash.
Jan. 16: Bob's store provided services to clients for 10,000 dollars, the clients paid in cash.
Jan. 17: A client from Bob store paid to the store 10,000 cash for future services in advance.
Jan. 24: Bob's store bought furniture for 3,000 cash.
Jan 26: Bob store paid the first installment of the bank loan like this: 3,000 cash for the capital, and 500 cash as interest.
Jan 28: Bob store received 5,000 cash for services.
Jan. 31: Bob store bought a computer for 1,000 cash.
2. Using the information from the previous question, build the Unadjusted Trial Balance for January 31.
3. Make the following adjustments to the accounts, journalize them, and adjust the T-accounts:
On Jan. 31, 1,000 dollars of wages were owed to the employees of the store.
On Jan. 31, one month of the insurance policy expired.
On Jan. 31, only 500 dollars of supplies were counted in the store.
On Jan. 31, 100 hours of services have been provided to the client who signed the contract on Jan. 12.
On Jan. 31, Bob store had provided services for 5,000 to the client who paid 10,000 in advance on Jan. 17.
The depreciation of the machine bought is 5% per month.
The depreciation of the computer is 10% per month.
The depreciation of the delivery truck is 5% per month.
4. Based on the adjustments of the previous question, prepare the Adjusted Trial Balance for January 31.
5. Using the Income Summary, revenues, expenses, withdrawals, and the Bob's capital accounts, prepare the closing entries.
6. Prepare the Balance Sheet and the Income Statement for Bob's Store for January 31.