ladyrelly
Apr 14, 2013, 06:05 PM
Not sure how to do the following entries. Can you help?
Transactions
On January 31, 2012, Ruiz Advertising Company’s Trial balance reflected as follows:
Ruiz Advertising Company, Inc.
Trial Balance
January 31, 2012
Account Title Dr. Cr.
Cash $ 203,471.00
Office Supplies $ 1,300.00
Office Equipment $ 9,943.00
Prepaid Insurance $ 12,500.00
Common Stock $ 100,000.00
Bonds Payable $ 88,000.00
Advertising Revenue $ 70,421.00
Accounts Payable $ 11,243.00
Dividends $ 2,700.00
Rent Expense $ 5,600.00
Salaries Expense $ 33,800.00
Meals Expense $ 350.00
Total $ 269,664.00 $ 269,664.00
Adjusting entries are required to prepare accurate financial statements for the first month of operation. Record journal entries and then prepare an adjusted trial balance for the month of January.
1. A utility bill for $700 is anticipated for January.
2. Management has decided to recognize salaries payable for the last period of the month at $16,900.
3. $700 was paid on the account used to purchase Office Supplies.
4. $1,000 was paid on the account used to purchase Equipment.
5. The portion of insurance related to the month of January is recorded as used.
6. The company has recognized interest on bonds that were initially issued at 12% for 5 years although interest is only paid every 3 months.
7. Only $500 in supplies were left in the stock room on January 31, 2012.
Transactions
On January 31, 2012, Ruiz Advertising Company’s Trial balance reflected as follows:
Ruiz Advertising Company, Inc.
Trial Balance
January 31, 2012
Account Title Dr. Cr.
Cash $ 203,471.00
Office Supplies $ 1,300.00
Office Equipment $ 9,943.00
Prepaid Insurance $ 12,500.00
Common Stock $ 100,000.00
Bonds Payable $ 88,000.00
Advertising Revenue $ 70,421.00
Accounts Payable $ 11,243.00
Dividends $ 2,700.00
Rent Expense $ 5,600.00
Salaries Expense $ 33,800.00
Meals Expense $ 350.00
Total $ 269,664.00 $ 269,664.00
Adjusting entries are required to prepare accurate financial statements for the first month of operation. Record journal entries and then prepare an adjusted trial balance for the month of January.
1. A utility bill for $700 is anticipated for January.
2. Management has decided to recognize salaries payable for the last period of the month at $16,900.
3. $700 was paid on the account used to purchase Office Supplies.
4. $1,000 was paid on the account used to purchase Equipment.
5. The portion of insurance related to the month of January is recorded as used.
6. The company has recognized interest on bonds that were initially issued at 12% for 5 years although interest is only paid every 3 months.
7. Only $500 in supplies were left in the stock room on January 31, 2012.