Here are the current account balances for Sharon’s Stones:

Income Statement account Amount (dr/cr)   Balance Sheet account

Sales Revenue 900 cr Cash
Service Revenue 150 cr Accounts Receivable
Cost of Goods Sold Expense 400 dr Inventory
Utilities Expense 220 dr Equipment
Accounts Payable
Bank Loan
Sharon, Capital
Sharon, Withdrawals

l) Make the necessary journal entries for the following transactions:

a) Aug 31, 2024- Sharon recognizes that her equipment will last 3 years and have a salvage value of $100 at that point
b) Sep 1, 2024- Sharon purchases a $6,000 vehicle financed through a car dealership loan (4% annual interest rate wit
c) Sep 3, 2024- Hugh pays off his remaining debt to Sharon.
d) Sep 5, 2024- Sharon pays her supplier for the Aug 11 purchase.
th

e) Sep 9, 2024- Sharon secures a $3,000 contract to produce ten jewellery pieces. The customer will provide the mate
f) Sep 13, 2024- Sharon makes a $950 cash sale. The goods had cost her $450. 
g) Sep 18, 2024- Sharon buys inventory for $800 on account. 
h) Sep 21, 2024- Sharon completes a $100 necklace repair on account.
i) Sep 25, 2024- Sharon secures a $2,000 contract to produce seven jewellery pieces. The customer pays her up front.
j) Sep 28, 2024- Sharon repays $750 of her bank loan.
k) Sep 30, 2024- Sharon estimates she has completed two-thirds (66.7%) of the work on the Sep 9 contract and one-q
th
 Amount (dr/cr)
4,330 dr
450 dr
800 dr
3,000 dr
1,200 cr
2,250 cr
5,000 cr
300 dr

ave a salvage value of $100 at that point. She wishes to depreciate all capital assets on a monthly basis using the straight-line method.
ership loan (4% annual interest rate with interest payable every three months). The vehicle is expected to last 5 years with a salvage value

ces. The customer will provide the materials and pay at the end.  

pieces. The customer pays her up front.

e work on the Sep 9 contract and one-quarter (25%) of the work on the Sep 25 contract.
th th
traight-line method.
ears with a salvage value of $1,000.
Here are the current account balances (Part 1 transactions not included) for Sharon’s Stones:

Income Statement account Amount (dr/cr)   Balance Sheet account

Sales Revenue 900 cr Cash
Service Revenue 150 cr Accounts Receivable
Cost of Goods Sold Expense 400 dr Inventory
Utilities Expense 220 dr Equipment
Accounts Payable
Bank Loan
Sharon, Capital
Sharon, Withdrawals

II) Make the necessary adjusting entries for the August month-end. Also, make a list of updated income statement and ba

Dr/Cr Account name

 Stones:

Amount (dr/cr)
4,330 dr
450 dr
800 dr
3,000 dr
1,200 cr
2,250 cr
5,000 cr
300 dr

ist of updated income statement and balance sheet accounts (and their dr/cr balances) after these adjustments are done.

Account balance I/S or B/S

re done.
lll) Make the necessary adjusting entries for September month-end for Sharon’s Stones. Also, make a list of updated inco

Dr/Cr Account name

tones. Also, make a list of updated income statement and balance sheet accounts (and their dr/cr balances) after these adjustments are

Account balance I/S or B/S

er these adjustments are done.
IV) Make the necessary closing entries at the end of September (quarter-end) for Sharon’s Stones.
ones.