Depreciation Expense Supplies Expense Interest Expense Total debits
665 14,390 580 45 $ 34,990
Service Revenue Total credits
$34,990
(a) Determine the net income for the month of July. (b) Determine the total assets and total liabilities at July 31, 2015 for Yankee Hotel Foxtrot. (c) Determine the amount that appears for Retained Earnings at July 31, 2015.
a
Ex. 245
1. Drive-by Truckers prepares monthly financial statements. On July 1, the Supplies account had a balance of $3,000. During July, additional supplies were purchased for $4,800 and that amount was debited to Supplies Expense. On July 31, a physical count of supplies revealed that there was $2,000 on hand. Prepare the adjusting journal entry that Drive-by Truckers should make on July 31. 2. Alesandro Rental Agency prepares monthly financial statements. On September 1, a check for $9,000 was received from a tenant for six months’ rent. The full amount was credited to Rent Revenue. Prepare the adjusting entry the company should make on September 30.