Bruce Li commenced his concrete polishing business on 1 July 2018, trading as Li Concrete Polishing. The transactions for his first month of business are given below. Bruce Li records the payments for insurance as a prepayment (Prepaid Insurance) and records the corresponding expenses on balance date.
Further information as at 31 July 2018:
• Mobile telephone phone expenses of $400 were owing for July. An invoice had not been received on balance date.
• The depreciation expense for the equipment for July is determined to be $270.
• Insurance prepaid for August and September is $400.
• Services performed but not invoiced amounted to $700.
Prepare all of the journal entries for the above transactions (narrations are not required).

Question

Bruce Li commenced his concrete polishing business on 1 July 2018, trading as Li Concrete Polishing. The transactions for his first month of business are given below. Bruce Li records the payments for insurance as a prepayment (Prepaid Insurance) and records the corresponding expenses on balance date.
  Further information as at 31 July 2018:
• Mobile telephone phone expenses of $400 were owing for July. An invoice had not been received on balance date.
• The depreciation expense for the equipment for July is determined to be $270.
• Insurance prepaid for August and September is $400.
• Services performed but not invoiced amounted to $700.
Prepare all of the journal entries for the above transactions (narrations are not required).

Quizplus · Accepted Answer

The Answer of Bruce Li commenced his concrete polishing business on 1 July 2018, trading as Li Concrete Polishing. The transactions for his first month of business are given below. Bruce Li records the payments for insurance as a prepayment (Prepaid Insurance) and records the corresponding expenses on balance date.
  Further information as at 31 July 2018:
• Mobile telephone phone expenses of $400 were owing for July. An invoice had not been received on balance date.
• The depreciation expense for the equipment for July is determined to be $270.
• Insurance prepaid for August and September is $400.
• Services performed but not invoiced amounted to $700.
Prepare all of the journal entries for the above transactions (narrations are not required).

Bruce Li Commenced His Concrete Polishing Business on 1 July