Cedar River began operations on July 1st, 2018. Cedar River is doing the necessary adjusting entries for the month ending July 31, 2018. These adjustments are necessary in order to prepare a set of financial statements.

Cedar River began operations on July 1^st, 2018.  Cedar River is doing the necessary adjusting entries for the month ending July 31, 2018.  These adjustments are necessary in order to prepare a set of financial statements.

Adjustment data

1.     Four months of rent was prepaid on July 1^st.

2.     A physical count revealed $625 of office supplies on hand at the end of the month.

3.     Monthly depreciation on the Furniture (5 year life) is $300

4.     Monthly depreciation on the building (20 year life) is $400

5.     One half of revenue collected in advance has been earned

6.     Cedar River pays $6,000 every Friday for a five-day work week - Monday through Friday.  July 31 is a Tuesday

7.     Monthly interest on the note payable is $250