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    Income Statement Account Amount (DR/CR) Balance Sheet Account

    Uploaded by

    manpreet
    Sharon owns a business called Sharon's Stones that sells jewelry. The document provides account balances for income statement and balance sheet accounts. It also lists transactions throughout August and September and asks to make journal entries, adjusting entries, and closing entries.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Income Statement Account Amount (DR/CR) Balance Sheet Account

    Uploaded by

    manpreet
    130 views20 pages
    Sharon owns a business called Sharon's Stones that sells jewelry. The document provides account balances for income statement and balance sheet accounts. It also lists transactions throughout August and September and asks to make journal entries, adjusting entries, and closing entries.

    Original Description:

    financial accounting

    Original Title

    financial accounting

    Copyright

    © © All Rights Reserved

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    XLSX, PDF, TXT or read online from Scribd

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    Sharon owns a business called Sharon's Stones that sells jewelry. The document provides account balances for income statement and balance sheet accounts. It also lists transactions throughout August and September and asks to make journal entries, adjusting entries, and closing entries.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    130 views20 pages

    Income Statement Account Amount (DR/CR) Balance Sheet Account

    Uploaded by

    manpreet
    Sharon owns a business called Sharon's Stones that sells jewelry. The document provides account balances for income statement and balance sheet accounts. It also lists transactions throughout August and September and asks to make journal entries, adjusting entries, and closing entries.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 20

    Here are the current account balances for Sharon’s Stones:

    Income Statement account Amount (dr/cr)   Balance Sheet account


    Sales Revenue 900 cr Cash
    Service Revenue 150 cr Accounts Receivable
    Cost of Goods Sold Expense 400 dr Inventory
    Utilities Expense 220 dr Equipment
    Accounts Payable
    Bank Loan
    Sharon, Capital
    Sharon, Withdrawals

    l) Make the necessary journal entries for the following transactions:

    a) Aug 31, 2024- Sharon recognizes that her equipment will last 3 years and have a salvage value of $100 at that point
    b) Sep 1, 2024- Sharon purchases a $6,000 vehicle financed through a car dealership loan (4% annual interest rate wit
    c) Sep 3, 2024- Hugh pays off his remaining debt to Sharon.
    d) Sep 5, 2024- Sharon pays her supplier for the Aug 11 purchase.
    th

    e) Sep 9, 2024- Sharon secures a $3,000 contract to produce ten jewellery pieces. The customer will provide the mate
    f) Sep 13, 2024- Sharon makes a $950 cash sale. The goods had cost her $450. 
    g) Sep 18, 2024- Sharon buys inventory for $800 on account. 
    h) Sep 21, 2024- Sharon completes a $100 necklace repair on account.
    i) Sep 25, 2024- Sharon secures a $2,000 contract to produce seven jewellery pieces. The customer pays her up front.
    j) Sep 28, 2024- Sharon repays $750 of her bank loan.
    k) Sep 30, 2024- Sharon estimates she has completed two-thirds (66.7%) of the work on the Sep 9 contract and one-q
    th
    Amount (dr/cr)
    4,330 dr
    450 dr
    800 dr
    3,000 dr
    1,200 cr
    2,250 cr
    5,000 cr
    300 dr

    ave a salvage value of $100 at that point. She wishes to depreciate all capital assets on a monthly basis using the straight-line method.
    ership loan (4% annual interest rate with interest payable every three months). The vehicle is expected to last 5 years with a salvage value

    ces. The customer will provide the materials and pay at the end.  

    pieces. The customer pays her up front.

    e work on the Sep 9 contract and one-quarter (25%) of the work on the Sep 25 contract.
    th th
    traight-line method.
    ears with a salvage value of $1,000.
    Here are the current account balances (Part 1 transactions not included) for Sharon’s Stones:

    Income Statement account Amount (dr/cr)   Balance Sheet account


    Sales Revenue 900 cr Cash
    Service Revenue 150 cr Accounts Receivable
    Cost of Goods Sold Expense 400 dr Inventory
    Utilities Expense 220 dr Equipment
    Accounts Payable
    Bank Loan
    Sharon, Capital
    Sharon, Withdrawals

    II) Make the necessary adjusting entries for the August month-end. Also, make a list of updated income statement and ba

    Dr/Cr Account name


    Stones:

    Amount (dr/cr)
    4,330 dr
    450 dr
    800 dr
    3,000 dr
    1,200 cr
    2,250 cr
    5,000 cr
    300 dr

    ist of updated income statement and balance sheet accounts (and their dr/cr balances) after these adjustments are done.

    Account balance I/S or B/S


    re done.
    lll) Make the necessary adjusting entries for September month-end for Sharon’s Stones. Also, make a list of updated inco

    Dr/Cr Account name


    tones. Also, make a list of updated income statement and balance sheet accounts (and their dr/cr balances) after these adjustments are

    Account balance I/S or B/S


    er these adjustments are done.
    IV) Make the necessary closing entries at the end of September (quarter-end) for Sharon’s Stones.
    ones.

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