Answer:
July 31 Dr. Cr.
1. Interest Receivable $220
Interest Income $220
2. Cost of Goods Sold $4,100
Supplies $4,100
3. Rent Expense $1,050
Prepaid Rent $1,050
4. Salaries and Wages Expense $3,500
Salaries and Wages Payable $3.500
5. Depreciation $470
Accumulated Depreciation $470
6. Unearned Service Revenue $4,850
Serivce Revenue $4,850
7. Maintainance & repair Exp. $2,150
Maintainance & repair Payable $2,150
Explanation:
1.
Interest Income from Note receivable = $22,000 x 12% x 1/12 = 220
2.
Reduction in supllies will be adjusted in Cost of Goods Sold by $4,100 ( $22,500 - $18,400 ).
3.
Monthly rent accrues = 4,200 / 4 = $1,050
4.
Unpaid salaried are recorded as the Salaries and Wages Payable of $3,500
5.
Depreciation per month = $5,640 / 12 = $470
6.
Service revenue will b recognized and balance is transferred from unearned revenue to service revenue.
7.
Maintenance and repair costs is recorded as as the maintenance and repair payable by $2,150.
