Accounting Exercise 2

Transaction Cash Net Income
a) Purchased $100 of supplies for cash. -100 0
b) Recorded an adjusting entry to record use $20 of the above supplies. 0 -20
c) Made sales of $1,300, all on account. 0 1,300
d) Received $800 from customers in payment of their accounts. 800 0
e) Purchased equipment for cash, $2,500. -2,500 0
f) Recorded depreciation of building for period used, $600. 0 -600

a)
Adjusting entries on June 30
Debit
Credit
Supplies Expense
1280

Supplies on hand 1280

Utilities Expense
180

Utilities payable 180

Insurance Expense
240

Prepaid Insurance 240

Unearned Service Revenue
4100

Service Revenue 4100

Salaries and Wages Expense
1250

Salaries and Wages payable 1250

Depreciation Expense
250

Accumulated Depreciation—Equipment 250

Accounts Receivable
3900

Service Revenue 3900

b)
Gil Vagel

Adjusted Trial balance on June 30

Debit
Credit
Cash
6850

Accounts Receivable
10900

Prepaid Insurance
2640

Supplies
720

Equipment
15000

Accumulated Depreciation—Equipment 250
Accounts Payable 4230
Utilities payable 180
Salaries and Wages payable 1250
Unearned Service Revenue 1100
Common Stock 22000
Service Revenue 16300
Salaries and Wages Expense
5250

Rent Expense
2000

Supplies expense
1280

Utiliites Expense
180

Insurance Expense
240

Deprecation expense
250

45310
45310

C)
Supplies on hand

Utilities payable

2000
1280

180

Prepaid Insurance

Unearned Service Revenue
2880
240

4100
5200

Accumulated Depreciation—Equipment
Service Revenue

250

8300

4100

3900

Accounts Receivable
Salaries and Wages payable
7000

1250

3900

Supplies expense
1280

utilities expense
180

Insurance Expense
240

Salaries