FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Journalize the
1. To record rent expense. (Three months of rent was prepaid earlier in the month.)
2. To record office supplies used. (A physical count revealed $625 of office supplies on hand at the end of the month.)
3. To record
4. To record depreciation on the building. (The building has a residual value of $24,000, and estimated useful life of 20 years. Use straight line depreciation.)
5. To record service revenue earned that was collected in advance. (Cedar River has earned $11,000 of the revenue that had been collected in advance.)
6. To accrue salaries expense. (Cedar River pays $6,000 every Friday for a five-day work week - Monday through Friday. July 31 is a Tuesday. Accrue two days of salaries.)
7. To accrue interest expense. (One month's interest on the Note Payable is $250.)
8. To accrue service revenue. (Revenue of $700 has been earned. The client will pay next month.)
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Part 1_Transactions
Transactions for July 2024
1 On July 1, 2024, Cedar River Company, an information technology (IT) consulting company, sold common stock for $650,000 all at par value.
2 On July 3, Cedar River paid $225,000 cash for land.
3 Cedar River purchased $1,250 of office supplies on account on July 5.
4 On July 6, Cedar River provided IT consulting services for a client and collected $12,000 cash.
5 Cedar River provided IT consulting services of $14,000 for clients on July 7. The clients will pay Cedar River in the future.
6 Cedar River paid cash expenses on July 13: salaries of $6,000 (ignore payroll taxes).
7 On July 12, Cedar River paid $750 on the accounts payable created in Transaction #3.
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Part1_Journal Entires
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Part 1_Worksheet
8 Cedar River collected $3,000 cash on July 14 from a client in transaction #5.
9 Provided IT consulting services of $31,000 to a client on account.
10 On July 16, Cedar Rivers paid $2,500 in cash dividends to shareholders.
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Part 1_T-Accounts
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11 On July 18, Cedar River prepaid office rent of $15,000 for the months of July, August and September.
12 Cedar River paid $6,000 (ignore payroll taxes) salaries to employees on July 20.
13 Cedar River purchased a building for $520,000 on July 25. A note payable was issued for the entire amount.
14 On July 26, Cedar River paid cash of $25,000 for furniture.
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Part 2 Instructions
15 Cedar River received a cell phone bill for $1,100, on July 28, and will pay this amount in August. Use Utilities Payable.
16 On July 27, Cedar River paid employee salaries of $6,000.
17 Cedar River meets with a client on July 30, who pays $22,000 in advance for consulting services to be performed during August and September.
18 On July 30, Cedar River performed consulting services for clients and received $16,000 in cash.
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