Q1)
1.
DR Office supplies expense 120
CR Office supplies 120
2.
DR Unearned consulting revenue 1200
CR Consulting revenue 1200
3.
DR AR 1500
CR Consulting service revenue 1500
4.
DR Depreciation expense 750
CR Accumulated depreciation 750
5.
DR Rent expense 300
CR Prepaid rent 300
6.
DR Insurance expense 90
CR Unexpired insurance 90
7.
DR Salaries expense 1900
CR Salaries payable 1900
8.
DR Interest expense 60
CR Interest payable 60
9.
DR Income tax expense 600
CR Income tax payable 600
10.
DR AP 250
CR Dividends Payable 250
11.
DR AR 2400
CR Consulting service revenue 2400
Q2)
2.
DR Insurance expense 725
CR Prepaid insurance 725
4.
DR Dividend Payable 4000
CR AP 4000
5.
DR Rental expense 2100
CR Prepaid rent 2100
9.
DR Utilities expense 500
CR Utilities payable 500
Exam grade Darren questions
Deposit in transit = 8360
Outstanding checks = 4392
Bank Balance: 47116
(+) Deposit in transit 8360
(-) Outstanding checks (4392)
Adjusted bank balance = 51084
Book Balance 48739
(+) Collection of a note receivable 2500
(+) Collection of interest receivable 250
(-) NSF check (550)
(-) Bank fees (35)
(+) Book error 180
Adjusted book balance = 51084
Journal entry
To record bank collection
DR Cash 2750
CR Note Receivable 2500
CR Interest Receivable 250
To record NSF check
DR AR 550
CR Cash 550
To record bank charge
DR Bank fees expense 35
CR Cash 35
To record book error
DR Cash 180
CR AP 180