Utilize the Chart of Accounts listed below to answer questions A, B, and C. Green has the following accounts in its General Ledger: Cash Accounts Payable Retained Earnings Supplies Wages Payable Service Revenue Inventory Unearned Service Revenue Supplies Expense Prepaid Maintenance Unearned Maintenance Revenue Maintenance Expense Equipment Notes Payable Wages Expense Accumulated Depreciation Common Stock Depreciation Expense (A.) On March 1, 2017 Green Company purchased $12,500 of office supplies. On that date Green recorded the supplies purchase transaction as follows: Dr. Cr. Supplies 12,500 Cash 12,500 The entry above is the only entry Green has made related to this item. The balance was zero in the Supplies account prior to the above entry. On March 31, 2017 Green counted the office supplies and determined there were $9,300 remaining. In the General Journal below record the required March 31, 2017 adjusting journal entry. (B.) Green’s employees are paid in cash each Friday for that week’s work and the payment of the payroll is recorded in the accounting system. The last payday of March was on Friday March 26. The employees worked on Monday March 29th, Tuesday March 30th, and Wednesday March 31st. The employees earned a total of $1,200 for these last three days of March. In the General Journal below record the required March 31 adjusting journal entry. (C.) On March 1, 2017 Green Company purchased a new piece of equipment for $210,000 cash. On March 1 Green recorded the equipment purchase with a Debit to the Equipment account and a Credit to the Cash account. Green estimates that the equipment will last 7 years. Green also estimates that at the end of 7 years the equipment will have no future value and will be scrapped. Green uses the straight-line depreciation method. In the General Journal below record the required March 31, 2017 adjusting journal entry for March’s depreciation of the equipment.
Utilize the Chart of Accounts listed below to answer questions A, B, and C.
Green has the following accounts in its General Ledger:
Cash Accounts Payable
Supplies Wages Payable Service Revenue
Inventory Unearned Service Revenue Supplies Expense
Prepaid Maintenance Unearned Maintenance Revenue Maintenance Expense
Equipment Notes Payable Wages Expense
(A.)
On March 1, 2017 Green Company purchased $12,500 of office supplies. On that date Green recorded the supplies purchase transaction as follows:
Dr. Cr.
Supplies 12,500
Cash 12,500
The entry above is the only entry Green has made related to this item. The balance was zero in the Supplies account prior to the above entry.
On March 31, 2017 Green counted the office supplies and determined there were $9,300 remaining.
In the General Journal below record the required March 31, 2017
(B.)
Green’s employees are paid in cash each Friday for that week’s work and the payment of the payroll is recorded in the accounting system. The last payday of March was on Friday March 26.
The employees worked on Monday March 29th, Tuesday March 30th, and Wednesday March 31st. The employees earned a total of $1,200 for these last three days of March.
In the General Journal below record the required March 31 adjusting journal entry.
(C.)
On March 1, 2017 Green Company purchased a new piece of equipment for $210,000 cash. On March 1 Green recorded the equipment purchase with a Debit to the Equipment account and a Credit to the Cash account. Green estimates that the equipment will last 7 years. Green also estimates that at the end of 7 years the equipment will have no future value and will be scrapped. Green uses the
In the General Journal below record the required March 31, 2017 adjusting journal entry for March’s depreciation of the equipment.
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