1

10

11

12

13

14

15

16
17

8
 JOURNAL ENTRY
Oct. 1 Invested cash

Oct. 1 Purchased equipment on account.

Oct. 3 Purchased supplies thru issuance of notes.

Oct. 5 Paid on one-year insurance policy.

Oct. 12 Billed customers on account.

Oct. 20 Paid employee salaries.

Oct. 21 Collected cash from customers previously billed.

Oct. 22 Received cash for notes issued with 12% annual interest.

Oct. 23 Unearned revenues

Oct. 24 Invested in cash equivalents with 6% annual interest.

Oct. 31 Paid utlities.

Oct. 31 Withdrew for personal use.

Oct. 31 Paid on account.

Oct. 31 Paid partially the notes previously issued.

Oct. 31 Paid for miscellaneous costs.

Oct. 31 Paid for rent

Oct. 31 Received for services rendered.

ADJUSTING JOURNAL ENTRIES

Oct. 31 Recognized one-month depreciation. Estimated useful life of 5 years without salvage value.

Oct. 31 Recognized one-month expired insurance. Asset method will be used.

Oct. 31 Unused supplies. Asset method will be used.

Oct. 31 Accrued salaries.

Oct. 31 Accrued one-month interest.

Oct. 31 Estimated bad debts.

Oct. 31 2/4 of unearned revenues previously recognized were earned already by end of the month.

Oct. 31 One-month interest earned in cash equivalents.

 DR CR
Cash 50,000
Capital 50,000

Equipment 15,000
Account Payable 15,000

Supplies 3,000
Notes Payable 3,000

Prepaid Insurance 15,000

Cash 15,000

Account Receivables 150,000

Service Revenue 150,000

Salaries Expense 5,000

Cash 5,000

Cash 8,000
Account Receivables 8,000

Cash 80,000
Notes Payable 80,000

Cash 170,000
Unearned Revenues 170,000

Cash Equivalents 80,000

Cash 80,000

Utilities Expense 12,000

Cash 12,000

Withdrawals 25,000
Cash 25,000

Account Payable 3,000

Cash 3,000

Notes Payable 5,000

Cash 5,000

Micellaneous Expense 1,200

Cash 1,200

Rent Expense 5,500

 Cash 5,500

Cash 99,000
Service Revenues 99,000

DR CR
Depreciation Expense 250
Accumulated Depreciation 250

Insurance Expense 1,250

Prepaid Insurance 1,250

Supplies Expense 2,100

Supplies 2,100

Salaries Expense 3,000

Accounts Payable 3,000

Interest Expense 800

Accounts Payable 800

Uncollectible Accounts Expense 500

Allowance for Uncollectible Accounts 500

Unearned Revenues 85,000

Service Revenues 85,000

Interest Receivable 400

Interest Revenues 400
4 CLOSING JOURNAL ENTRIES
REVENUES
2021 Service Revenues
Oct-31 Interest Income

EXPENSES
31 Profit & Loss Summary

INCOME
31 Profit & Loss Summary

LOSS
31 Ariel, Capital

WITHDRAWALS
31 Ariel, Capital
 334,000.00
400
Profit & Loss Summary 334,400.00

31,600.00
Miscellaneous Expense 1,200
Utilities Expense (TEWF) 12,000.00
Rent Expense 5,500.00
Supplies Expense 2,100.00
Insurance Expense 1,250
Depreciation Expense 250.00
Uncollectible Accounts Expense 500.00
Interest Expense 800
Salaries & Wages 8,000.00

302,800.00
Ariel, Capital 302,800.00

-
Profit & Loss Summary -

25,000.00
Ariel, Withdrawals 25,000.00
REVERSING JOURNAL ENTRIES
AJE: INCREASE A OR L

2021 Accounts Payable 3,000

Nov-01 Salaries Expense 3,000

Accounts Payable 800

Interest Expense 800

Interest Revenues 400

Interest Receivable 400