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    For The Past Several Years Derrick Epstein Has Operated A

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    M Bilal Saleem
    Derrick Epstein operated a part-time consulting business from his home for several years before deciding to operate it full-time as Luminary Consulting on June 1. Various transactions occurred during June, including receiving assets from Derrick Epstein, paying rent and insurance, providing and receiving payment for consulting services, purchasing equipment and supplies, and paying expenses. Adjusting entries were needed at the end of June for depreciation, prepaid and accrued items, and to close accounts.

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    For The Past Several Years Derrick Epstein Has Operated A

    Uploaded by

    M Bilal Saleem
    137 views1 page
    Derrick Epstein operated a part-time consulting business from his home for several years before deciding to operate it full-time as Luminary Consulting on June 1. Various transactions occurred during June, including receiving assets from Derrick Epstein, paying rent and insurance, providing and receiving payment for consulting services, purchasing equipment and supplies, and paying expenses. Adjusting entries were needed at the end of June for depreciation, prepaid and accrued items, and to close accounts.

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    For the Past Several Years Derrick Epstein Has Operated A

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    Derrick Epstein operated a part-time consulting business from his home for several years before deciding to operate it full-time as Luminary Consulting on June 1. Various transactions occurred during June, including receiving assets from Derrick Epstein, paying rent and insurance, providing and receiving payment for consulting services, purchasing equipment and supplies, and paying expenses. Adjusting entries were needed at the end of June for depreciation, prepaid and accrued items, and to close accounts.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    137 views1 page

    For The Past Several Years Derrick Epstein Has Operated A

    Uploaded by

    M Bilal Saleem
    Derrick Epstein operated a part-time consulting business from his home for several years before deciding to operate it full-time as Luminary Consulting on June 1. Various transactions occurred during June, including receiving assets from Derrick Epstein, paying rent and insurance, providing and receiving payment for consulting services, purchasing equipment and supplies, and paying expenses. Adjusting entries were needed at the end of June for depreciation, prepaid and accrued items, and to close accounts.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    For the past several years Derrick Epstein has operated a

    For the past several years, Derrick Epstein has operated a part-time consulting business from
    his home. As of June 1, 2008, Derrick decided to move to rented quarters and to operate the
    business, which was to be known as Luminary Consulting, on a full-time basis.Luminary
    Consulting entered into the following transactions during June:June 1. The following assets
    were received from Derrick Epstein: cash, $26,200; accounts receivable, $6,000; supplies,
    $2,800; and office equipment, $25,000. There were no liabilities received.1. Paid three months'
    rent on a lease rental contract, $5,250.2. Paid the premiums on property and casualty insurance
    policies, $2,100.4. Received cash from clients as an advance payment for services to be
    provided and recorded it as unearned fees, $2,700.5. Purchased additional office equipment on
    account from Office Station Co., $5,000.6. Received cash from clients on account, $3,000.10.
    Paid cash for a newspaper advertisement, $200.12. Paid Office Station Co. for part of the debt
    incurred on June 5, $1,000.12. Recorded services provided on account for the period June
    1-12, $5,100.14. Paid part-time receptionist for two weeks' salary, $800.17. Recorded cash from
    cash clients for fees earned during the period June 1-16, $3,500.June 18. Paid cash for
    supplies, $750.20. Recorded services provided on account for the period June 13-20,
    $1,100.24. Recorded cash from cash clients for fees earned for the period June 17-24,
    $4,150.26. Received cash from clients on account, $4,900.27. Paid part-time receptionist for
    two weeks' salary, $800.29. Paid telephone bill for June, $150.30. Paid electricity bill for June,
    $400.30. Recorded cash from cash clients for fees earned for the period June 25-30, $1,500.30.
    Recorded services provided on account for the remainder of June, $1,000.30. Derrick withdrew
    $8,000 for personal use.Instructions1. Journalize each transaction in a two-column journal,
    referring to the following chart of accounts in selecting the accounts to be debited and credited.
    (Do not insert the account numbers in the journal at this time.)11 Cash 12 Accounts Receivable
    14 Supplies 15 Prepaid Rent 16 Prepaid Insurance 18 Office Equipment 19 Accumulated
    Depreciation 21 Accounts Payable 22 Salaries Payable 23 Unearned Fees31 Derrick Epstein,
    Capital32 Derrick Epstein, Drawing41 Fees Earned51 Salary Expense52 Rent Expense53
    Supplies Expense54 Depreciation Expense55 Insurance Expense59 Miscellaneous Expense2.
    Post the journal to a ledger of four-column accounts.3. Prepare an unadjusted trial balance.4. At
    the end of June, the following adjustment data were assembled. Analyze and use these data to
    complete parts (5) and (6).a. Insurance expired during June is $175.b. Supplies on hand on
    June 30 are $2,000.c. Depreciation of office equipment for June is $500.d. Accrued receptionist
    salary on June 30 is $120.e. Rent expired during June is $1,500.f. Unearned fees on June 30
    are $1,875.5. Optional: Enter the unadjusted trial balance on an end-of-period spreadsheet
    (work sheet) and complete the spreadsheet.6. Journalize and post the adjusting entries.7.
    Prepare an adjusted trial balance.8. Prepare an income statement, a statement of owner's
    equity, and a balance sheet.9. Prepare and post the closing entries. (Income Summary is
    account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the
    Balance columns opposite the closing entry.10. Prepare a post-closing trial balance.View
    Solution:
    For the past several years Derrick Epstein has operated a
    SOLUTION-- http://expertanswer.online/downloads/for-the-past-several-years-derrick-epstein-
    has-operated-a/

    See Answer here expertanswer.online


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