[ladyrelly]

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.

[pready]

1. You need to record the utility bill as an Expense and as a payable.

2. You need to record the salaries expense and as a payable.

3. You need to record the payment on an account payable.

4. you need to record the payment on an account payable.

5. You need to calculate the amount of insurance for one month, then record the Insurance Expense. Your other account will be Prepaid Insurance.

6. You need to calculate one month of interest on the bonds, then record your interest expense and interest payable.

7. You need to calculate the amount of supplies used, then record the amount as Office Supplies Expense and crediting Office Supplies.

[ladyrelly]

1/31/2013 Utilities Expense $700
Utilities Payable 700
(Paid utilities for January)
1/31/2013 Salaries Expense 16,900
Salaries Payable 16,900
(Paid Employee Salaries 7/16 - 7/31)
1/31/2013 Office Supplies Expense 700
Office Supplies 700
(Purchased Supplies on Account)
1/31/2013 Equipment Expense 1,000
Accounts Payable 1,000
(Purchased Equipment on Account))
1/31/2013 Insurance Expense 1,042
Pre-paid Insurance 1,042
(Payment for January Insurance)
1/31/2013 Bonds Interest Expense 220
Bonds Interest Payable 220
(Paid 3-months Interest on Bonds)


Ruiz Advertising Company, Inc.
Adjusted Trial Balance
January 31, 2012



Account Title Dr. Cr.
Cash $ 201,771.00
Office Supplies $ 500.00
Office Equipment $ 9,943.00
Prepaid Insurance $ 11,458.00
Common Stock $ 100,000.00
Bonds Payable $ 90,640.00
Advertising Revenue $ 70,421.00
Accounts Payable $ 9,543.00
Utilities Payable $ 700.00
Salaries Payable $ 16,900.00
Office Supplies Expense $ 800.00
Dividends $ 2,700.00
Rent Expense $ 5,600.00
Salaries Expense $ 50,700.00
Meals Expense $ 350.00
Utilities Expense $ 700.00
Insurance Expense $ 1,042.00
Bonds Interest Expense $ 2,640.00

Total $ 288,204.00 $ 288,204.00

[pready]

For transaction number 2 you have not paid your employees during the period, so you are recording the salaries wages that were earned but not paid in the current period.



For transaction number 3 your credit should be to Accounts Payable instead of Office Supplies.

For transaction number 7 you need to start with your Office Supplies account and subtract out your actual onhand amount to get your Office Supplies Expense amount. Your credit will be to Office Supplies. This adjusting entry brings your account balance into agreement with your actual onhand amount.

Your other entries look correct.