Transaction Entries, Posting, Trial Balance, and Adjusting Entries The Wellness Catering Service had the following transactions in July, its first month of operations 1 Kelly Foster contributed personal funds in exchange for common stock to begin the business. $40,000 2 Purchased the following for cash: (make a compound entry): Delivery van 3,780 Equipment 3,240 Supplies 5,600 3 Paid one-year premium on liability insurance policy 5,100 4 Entered into a contract with a local service club to cater weekly luncheon meetings for one year at $790 per month. Received 6 months fees in advance 4,740 5 Paid rent for July, August, and September 6,345 6 Paid employee's two weeks' wages (five-day week) 5,700 7 Billed customers for services rendered 8,500 8 Purchased supplies on account 7,400 9 Paid employee's two weeks' wages 5,700 10 Paid July bill for gas, oil and repairs on delivery van 11 Collected on account from customers 7,700 12 Billed customers for services rendered 8,800 13 Foster received a dividend 5,900 730 Required Using the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Rent; Prepaid Insurance; Delivery Van; Accumulated Depreciation-Delivery Van; Equipment; Accumulated Depreciation Equipment; Accounts Payable; Wages Payable; Unearned Catering Fees; Common Stock; Dividends; Retained Earnings; Catering Fees Revenue; Wages Expense; Rent Expense; Supplies Expense; Insurance Expense; Delivery Van Expense; Depreciation Expense-Delivery Van; and Depreciation Expense-Equipment. a. Record July transactions in the general journal. b. Post transactions to the ledger accounts. c. Prepare an unadjusted trial balance as of July 31. d. Record adjusting journal entries in the general journal and post to the ledger accounts in part b. Required Using the following accounts: Cash; Accounts Receivable; Supplies; Prepaid Rent; Prepaid Insurance; Delivery Van; Accumulated Depreciation-Delivery Van; Equipment; Accumulated Depreciation-Equipment; Accounts Payable; Wa Payable; Unearned Catering Fees; Common Stock; Dividends; Retained Earnings; Catering Fees Revenue; Wages Ex Rent Expense; Supplies Expense; Insurance Expense; Delivery Van Expense; Depreciation Expense-Delivery Van; an Depreciation Expense-Equipment. a. Record July transactions in the general journal. b. Post transactions to the ledger accounts. C. Prepare an unadjusted trial balance as of July 31. d. Record adjusting journal entries in the general journal and post to the ledger accounts in part b. The following information is available on July 31: Supplies on hand $4,500 Accrued wages $910 Estimated life of delivery van(assume van was purchased July 1) 3 years Estimated life of equipment(assume equipment was purchased July 1) Also, make any necessary adjusting entries for insurance, rent and catering fees indicated by the July transactions. (Assume original transactions occurred luly 1.) 6 years Post ref. (1) $ Debit 40,000 $ Credit 0 40,000 + 0 (2) 0 3,780 3,240 0 5,600 0 0 12,620 (3) 0 5,100 0 + 5,100 4) 4,740 0 0 4,740 General Journal Date Description July Cash Common Stock To record issuance of common stock. Delivery Van Equipment Supplies Cash To record purchase of delivery van, equipment and supplies for cash. Prepaid Insurance Cash Paid one-year premium on liability insurance. Cash Unearned Catering Fees Received 6-months advance payment for services. Prepaid Rent Cash To record rent payment for July, August and September. Wages Expense Cash To record 2-week wages paid. Accounts Receivable Catering Fees Revenue Billed customers for service. Supplies Accounts Payable To record supplies purchased on account. Wages Expense Cash To record 2-week wages paid. (5) 6,345 0 0 6,345 (6) 5,700 0 0 5,700 5,500 0 0 5,500 (8) 7,400 0 0 7,400 (9) 5,700 0 0 5,700 (10) 730 0 0 730 (11) 7,700 0 0 7,700 Delivery Van Expense Cash To record payments for gas, oil, and repairs on delivery van. Cash Accounts Receivable Collection on account from customers. Accounts Receivable Catering Fees Revenue Billed customers for service. Dividends Cash To record Dividend paid. (12) 8,800 0 0 8,800 O (13) 5,900 0 5,900 Cash 40,000 0 (1) (2) (3) 0 12,620 5,100 (7) (11) (12) Bal Accounts Receivable 5,500 0 0 7,700 8,800 0 6,600 0 0 4,740 0 0 0 6,345 5,700 5,700 0 (5) (6) (9) (10) (11) (13) Supplies 5,600 7,400 0 0 730 0 (2) (8) (14) Bal 7,700 0 0 4,500 0 5,900 8,500 0 Bal 10,345 0 Unearned Catering Fees 0 4,740 (20) 0 790 Bal 0 5,530 (8) Accounts Payable 0 7,700 0 7,700 (1) Common Stock 40,000 40,000 0 Bal Bal 0 (7) (12) (20) 0 Wages Expense 5,700 5,700 Catering Fees Revenue 0 5,500 0 8,800 0 790 15,090 0 (6) (9) (15) Bal 910 0 Bal O 12,310 0 Delivery Van Expense 730 Accum Depr.-Equipment 0 45 (10) 0 (17) Delivery Van Expense 730 0 730 0 Accum Depr.-Equipment 0 45 (10) Bal (17) Bal 0 45 Depr. Exp.-Equipment 45 (17) O Dividends 5,900 5,900 (13) Bal 0 Bal 45 0 0 Depr.Exp.-Delivery Van 105 0 Insurance Expense 425 O (16) Bal (18) Bal 105 0 425 0 Equipment 3,240 3,240 Prepaid Insurance 5,100 0 0 (2) Bal 0 (3) (18) Bal 0 425 4,675 0 Rent Expense 2,115 2,115 0 (2) (19) Bal Delivery Van 3,780 3,780 0 Bal 0 Prepaid Rent 6,345 Wages Payable 0 910 (5) (19) 0 2,115 (15) Bal 0 0 910 Bal 4,230 0 Accum. Depr.-Delivery Van 0 105 (14) (16) Bal Supplies Expense 4,500 4,500 OO 0 105 Bal 0 6,600 0 0 0 0 0 WELLNESS CATERING SERVICE Unadjusted Trial Balance July 31 Cash $ 10,345 $ Accounts Receivable Supplies 8,500 Prepaid Rent 4,230 Prepaid Insurance 4,675 Delivery Van 3,780 Equipment Accounts Payable 0 Unearned Catering Fees 0 Common Stock 40,000 Dividends Catering Fees Revenue 0 Delivery Van Expense 3,780 Wages Expense 12,310 Totals 103,360 $ 3,240 0 7,700 5,530 0 0 15,090 5,900 0 0 S 28,320 Check Debit Credit IN 4,500 0 0 4,500 910 0 0 910 105 0 0 105 General Journal Date Description Post ref. July 31 Supplies Expense (14) Supplies To record supplies used in July. Wages Expense (15) Wages Payable To record accrued wages at July 31. Depreciation Expense-Delivery Van (16) Accumulated Depreciation-Delivery Van To record July depreciation on delivery van. Depreciation Expense-Equipment (17) Accumulated Depreciation-Equipment To record July depreciation on equipment. Insurance Expense (18) Prepaid Insurance To record July insurance expense. Rent Expense (19) Prepaid Rent To record July rent expense. Catering Fees Revenue (20) Unearned Catering Fees To record portion of advance payment earned in July. 45 0 0 45 425 0 0 425 2,115 0 0 2,115 790 0 0 790 Check