10-1-20
10-1-20
10-1-20
10-4-20
10-6-20
10-15-20
10-23-20
10-30-20
11-1-20
11-1-20
11-5-20
11-7-20
11-15-20
11-25-20
12-26-20
12-31-20
12-31-20
12-31-20
12-31-20
Fact Set:
Hudson invested $100,000 cash into the Business.
Hudson rented office space downtown. No security deposit was required. He paid the
1st Month's Rent of $500 in cash.
Hudson purchased Office Furniture for $5,000 in cash.
Hudson performed engineering services for the David Corless Company and was paid
$2,000 cash.
Hudson purchased some printed marketing materials for $200, paying cash.
Hudson performed engineering services for the Kyle and Company and charged them
$7,000, invoicing them for the services rendered.
Hudson received a check for payment in full of the outstanding invoice from Kyle and
Company.
Hudson purchased Office Supplies for $200 on Account at Klein's Stationary.
Hudson bought general liability insurance for $1,200 paying cash. The Policy period is for
11-1-20 to 10-31-21.
Hudson withdrew $4,000 cash from the Business.
Hudson performed engineering services for Toms River Township and invoiced the
township for 10,000.
Hudson paid JCP&L for the October Electric Bill, writing a check (same as cash) for $88.
Hudson received a partial payment from Toms River Township of $5,000.
Hudson received the balance of the payment due to him from Toms River Township.
Hudson accepted an advance payment of $5,000 from Christian Ferro for engineering
work that will be performed in January 2021.
Hudson noticed that no depreciation has been recorded for the Office Furniture since it
was originally purchased on 10-1-20. The Furniture has an estimated useful life of 7
Years with no Salvage value. He has decided to use the Straight Line Depreciation
Method.
Hudson has received, but not paid the JCP&L bill for November and December 2020
Electric in the amount of $150.
Hudson asked you to prepare the remaining year end adjusting entries, prior to closing
the books
You prepare all closing entries for the period end.
Fig: 1
