Answer to Question #216133 in Accounting for zuby

Question

12. Kevin decides to expand outside the college. On the first day of the month, KKCDK pays $20 in advance for advertising in the local paper. The advertisements will run during February and March.

13. The student groups paid for the 100 CDs not paid for in January.

14. KKCDK paid off its remaining accounts payable, salaries payable, taxes payable and interest payable.

15. KKCDK purchases 450 CDs for $135 on account.

16. KKCDK sells 500 CDs during the month for $0.80 each. KKCDK receives cash for 450 of them and is owed for the other 50.

17. KKCDK completes and delivers the advanced order of 50 CDs described in number 8 above.

18. KKCDK incurs $80 in tax expense. The taxes will be paid in March.

Required:

G. Prepare journal entries for the above events if needed.

H. Post the journal entries to the T-accounts.

I. Prepare an unadjusted trial balance for KKCDK for February.

J. Prepare adjusting entries for the following and post them to your T-accounts.

Answer 1

G) Journal entries

H) T-Accounts

I) Unadjusted trial balance

Accounts Debit Credit

Cash $380 $80

Supplies $135

Tax expense $80

Unearned revenue $20

Accounts payable $135

Accounts receivable $360

J) Adjusting entries

KKCDK is owed $40 for the CDs not sold