Using the account balances and additional adjustment information below, record adjusting journal entries. Adjustment information as of January 31, 20YY not already given in the original transaction(s):
Warehouse and office equipment was placed in service on January 1, 20YY-5 and is expected to last 10 years and has no salvage value. Cottonwood depreciates fixed assets on a straight-line Depreciation is rounded to the nearest dollar and assets are depreciated on a monthly basis (i.e. number of days in the month is not of consequence).
On February 2, Cottonwood received a $3,500 bill from PG&E for utilities consumed during January and the January AT&T bill in the amount of $350. The items are both treated as utility expense.
Liability insurance for the 20YY fiscal year was paid at the end of November 20YY-1. Liability insurance is assumed to be utilized uniformly monthly over the one-year policy period.
Prepare cash account and account receivables and income statement with closing entries
Ending Balance after all Entries & Adjustments
Cash: $ 18,782.00
A/R $ 134,390.00
Net Income (Loss) $ (20,233.00)