I attempted to do this problem & I am not sure whether it is correct or not.Please help.
Question is as follows.

Balance Sheet as of dec 31 2002
Assets
Cash 24$
A/c Rec. 15
Supplies 6
Prep. Insurance12
Equipment 50
Less: Acc. Dep(12) 38
Land 10
Total 105$

Liabilitioes+SE
A/c Payable $4
Interest Payable $3
Unearned Revenue 12
Other short-term payable 4
Long-term payable 50
Common stock 20
RE 12
Total $105

Transactions during 2003

1.Wages paID 5$
2.Purchased equipment for 5$
3.Collected cash 10$ from customers for wrk previusly performed & billed
4.Purchased 2$ of supplies for cASH
5.Paid 3$ to a vendr for supplies previously purchased on credit in dec 2002.
6.Paid the interest owed as of dec 31,2003.
7.Completed 18$ in services for customers , receiving 50% payment in cash & billing the remainder.
8.Paid 15$ to reduce outstanding notes payable.
9.Collected 5$ for issuance of common stock.
14.Declared & paid cash on dividend in amount of 50% of net income


Adjusting Journal entries
10.had performed 25% of the services for which it had been paid in advance.
11.Owes 1$ for interest that will be paid next month
12.Depreciated equipment in the amount of 4$
13.pHYSICAL COUNT F SUPPLIES IN HAND REVEAL 3$ ON HAND
A
Prepare Journal Entries & Adjusting Journal entries?

1 Wage Expense 5
Cash 5

2 Equipment 5
Cash 5

3 Cash 10
Service Revenue 10

4 Supplies Inventory 2
Cash 2

5 Accounts Payable 3
Cash 3

6 Interest Expense 3
Interest Payable 3

7 Cash 18
Service Revenue 9
Accounts Receivable 9

8 Long-term note payable 15
Cash 15

9 Cash 5
Common Stock 5

14 Dividend
Cash Not sure how to calculate this

Adjusting Journal Entries


10 10 Unearned Revenue 3
Fees Earned 3

11 Interest Expense 1
Interest Payable 1

12 Depreciation Expense 4
Accumulated Depreciation 4

13 Supplies Expense 5
Supplies Inventory 5



Am I doing it correct here?

1 and 2 – good job

3:
Dr. Cash 10
Cr. AR 10
If it has already been billed, the revenue has already been recorded.

4 – 5 – good job

6:
Confused a bit here.
I see $3 of interest payable on your balance sheet, are you just now paying that?

If so,
Dr. Interest Payable 3
Cr. Cash 3

7:
Dr. Cash 9
Dr. AR 9
Cr. Service Revenue 18

You made $18 in sales. You got half in cash $9, and the other half in AR (still owed)

8 – 9 – good

14 – can't do that just yet. First need to do adjusting entries to calculate net income.

10 – correct, except you should probably stick to one common revenue name.

Earlier you called it Service Revenue, here you call it Fees Earned

11 – 13 – good

Before we do 14, we must calculate Net Income:

Revenues
(7) Cr. Service Revenue 18
(10) Fees Earned 3
Total Revenue = 21

Expenses
(1) Wage Expense 5
(11) Interest Expense 1
(12) Depreciation Expense 4
(13) Supplies Expense 5
Total Expenses = 15

Net Income = 6

Now we can do 14.

14.Declared & paid cash on dividend in amount of 50% of net income

Dr. Dividends 3
Cr. Cash 3

Are you expected to do Closing entries as well?
Dr. Retained Earnings 3
Cr. Dividends 3

Plus closing your revenue and expense accounts.

Thank you for the prompt response :-)

You're welcome