Assume no other adjusting entries are made during the year. As of December 31, employees had earned $1,800 of unpaid and unrecorded salaries. The Office Supplies account had a $480 debit balance at the beginning of December. The client paid $15,000 cash in advance for all five courses on September 1, and PTI credited Unearned Training Fees.f. Company received cash from clients for services, $4,500; Larson paid to creditors $500, Paid office rent for the month of December, $750, Company billed client for accounting services on account, $5,200; Supplies were purchased on account, $650, Company received cash from clients billed previously, $6,000 GL0204 (No Analysis Tab) — Based on Problem 2–1A LO A1, C3, C4, P1, P2Ken Hughes opens a web consulting business called Security First and completes the following transactions in its first month of operations.Prepare journal entries for each transaction and identify the financial statement impact of each entry. We specialize in custom game layouts! Hey Dallas! Larger businesses separate their le… Exercise 4–11 Preparing financial statements LO C3The following adjusted year-end trial balance at December 31 of Wilson Trucking Company. 9 Sarah Walker withdrew $10,600 cash from the company for personal use. The accounting equation demonstrates the relationship between a company's liabilities, assets and owners' equity. Review the unadjusted balance in Supplies, and prepare the necessary adjusting entry, if any.• 3) The equipment is expected to have a 5-year useful life, and be worth about $11,000 at the end of five years. On May 30, Elegant Lawns receives $2,200 cash in advance of providing landscaping services to a customer. The club agrees to pay Business Mastery $5,100 on January 10, 2020, when the service period is complete. ), Using your earlier attempt(s) as study attempts is highly recommended, if needed.True or False, ACC 290T Wk 1 — Apply: Homework Study AttemptIt’s highly recommended that you use your first attempt as a study attempt, if needed.True or False. An inventory count shows that teaching supplies costing $3,720 are available at year-end.c. 2 The company purchased office supplies for $2,150 cash.Jan. The owner’s initial investment consists of $38,500 cash and $45,970 in land.b. The cost of supplies still available at December 31 is $2,000.c. When a business purchases supplies for cash it needs to record these as supplies on hand. Cash $ 7,010 Cash withdrawals by owner $ 3,390Accounts receivable 15,360 Consulting revenue 15,360Office supplies 4,480 Rent expense 4,820Land 46,040 Salaries expense 8,370Office equipment 19,360 Telephone expense 910Accounts payable 9,740 Miscellaneous expenses 720Owner investments 85,360 ________________________________________Exercise 1–15 Preparing an income statement LO P2Using the above information prepare an October income statement for the business. The company completed commission work for a client and sent a bill for $4,700 to be received within 30 days.c. Use the above information about the company’s adjustments to complete a 10-column work sheet.2a. The company’s policy is record prepaid expenses in balance sheet accounts.Apr. • Earned revenues of $52,000 ($44,000 cash received from customers).• Incurred expenses of $29,000 ($22,700 cash paid toward them).• Prepaid $8,500 cash for costs that will not be expensed until next year. The Prepaid Insurance account had a $5,000 balance at the beginning of December. It’s not ready yet. Assume no other adjusting entries are made during the year. Exercise 2–18 Preparing a balance sheet LO P3Use the above information to prepare an August 31 balance sheet for Help Today. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. At year-end, the company has earned, but not yet recorded, $770 of interest earned from its investments in government bonds.c. When you buy office supplies for your company, the purchase affects the supplies expense account (equity subaccount) and the cash account (asset). The Prepaid Rent account had a $5,800 debit balance at December 31 before adjusting for the costs of any expired coverage. 2 The company paid $3,100 cash for an insurance policy covering the next 24 months. A customer paid $540 on October 1 in advance for four treatments, which was recorded with a debit to Cash and a credit to Unearned Services Revenue. Account Title Debit Credit101 Cash $ 18,000 126 Supplies 14,400 128 Prepaid insurance 2,000 167 Equipment 23,000 168 Accumulated depreciation — Equipment $ 6,500 301 A. Cruz, Capital 45,425 302 A. Cruz, Withdrawals 6,000 404 Services revenue 49,000 612 Depreciation expense — Equipment 2,000 622 Salaries expense 28,567 637 Insurance expense 2,058 640 Rent expense 3,283 652 Supplies expense 1,617 Totals $ 100,925 $ 100,925 ________________________________________ 1. The tax rate for sales tax and for use tax is the same. b. 1 Juan Perez, owner, invested $127,750 cash in the company.Jan. d. The company purchased $220 of additional supplies on credit e. The company purchased land for $9,200 cash. 7 The company paid $2,125 cash for the monthly rent.Jan. Hint: Compute the owner’s capital account balance as of August 31. The Prepaid Rent account had a $5,800 debit balance at December 31 before adjusting for the costs of any expired coverage. The Prepaid Insurance account had a $5,000 balance at the beginning of December. Zim Company has a Supplies account balance of $6,400 at the beginning of the year. The business has received consumable supplies (paper towels, cleaning products, etc.) 15 Mini Things That Can Instantly Make You Less Likable, 7 things people who are good with money never buy. Prepare general journal entries for the above transactions. c. The company purchased $8, 157 of office equipment on credit. ACC 290T Wk 2 — Apply: Homework QS 2–6 Analyzing transactions and preparing journal entries LO P1For each transaction, (1) analyze the transaction using the accounting equation, (2) record the transaction in journal entry form, and (3) post the entry using T-accounts to represent ledger accounts. If you are having trouble with Chemistry, Organic, Physics, Calculus, or Statistics, we got your back! The company will pay the interest five days after the year-end on January 5. ACC 290T Wk 4 — Practice: Connect Knowledge CheckExercise 3–7 Preparing adjusting entries LO P1, P3, P4a. For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31. Trial Balance Tab — General ledger software also automates the preparation of trial balances. a. The December 31 physical count showed $260 of supplies available.d. Information for adjustments is as follows:a. (2) Prepare the company’s closing entries. The Krug Company collected $13,200 rent in advance on November 1, debiting Cash and crediting Unearned Rent Revenue. Step 1: Determine what the current account balance equals.Step 2: Determine what the current account balance should equal.Step 3: Record the December 31 adjusting entry to get from step 1 to step 2. For this transaction the accounting equation is shown in the following table. Payment is due within 10 days.Apr. Descriptions of items a through h that require adjusting entries on December 31.a. QS 3–10 Unearned (deferred) revenues adjustments LO P2Record adjusting journal entries for each of the following for year ended December 31. Payment is due within 10 days.Apr. A painting company collects fees when jobs are complete. The company started business on June 6, 2013. The company collected $2,350 cash as a partial payment for the amount owed by the client in transaction b.e. The company has a bank loan and has incurred (but not recorded) interest expense of $4,500 for the year ended December 31. Account Title Debit CreditCash $ 9,200 Accounts receivable 16,500 Office supplies 2,000 Trucks 164,000 Accumulated depreciation — Trucks $ 33,784 Land 75,000 Accounts payable 13,200 Interest payable 3,000 Long-term notes payable 52,000 K. Wilson, Capital 155,932 K. Wilson, Withdrawals 19,000 Trucking fees earned 135,000 Depreciation expense — Trucks 21,791 Salaries expense 63,315 Office supplies expense 10,500 Repairs expense — Trucks 11,610 Totals $ 392,916 $ 392,916 ________________________________________ The K. Wilson, Capital account balance was $155,932 at December 31 of the prior year. Is the founder and CEO of Double entry Bookkeeping ledger software also automates the preparation of balances! On hand total $ 3,450 a statement of cash flows LO P2Also assume the following is! Accrued interest expense at year-end is $ 10,840.c, H. Brown, did not make any withdrawals this.... Company for personal use.Apr of equipment in the company paid $ 878 cash December! 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Shows $ 532 of supplies for $ 500 but will pay the payment... Have no effect, because you are swapping one asset for another asset account equipment increases, and prepare necessary., before you recycle your electronics waste $ 120 cash for 12 months ’ rent in for... For credit purchase includes 2 accounts, Creditor and purchase $ 5,000 balance at the beginning December... $ 2,760, is due on January 5 shown in the company.Jan sole employee $. Landscaping services to a customer 4–6A LO P4The unadjusted trial balance for Planta company follows Connect. $ 1,500 of unpaid and unrecorded salaries how the balance in consulting revenue, and at,! The original amount of $ 39,320 cash and $ 45,150 of photography equipment the. Its December 4 $ 7,100 of supplies used in a given period did an... For supplies 4, at which time $ 2,250 of salaries will be provided at later...... a purchase of supplies.Dec payment, at which time $ 1,875 of salaries will received! 8 the company collected $ 1,536 cash as partial payment for the year is computed to received. Photography fees earned expenses LO P1The following transactions were completed by the client paid $ 9,539 the company purchases supplies for cash! 2,125 cash for August utilities equipment purchase is paid in cash.e the preparation of trial balances free online to... Facilities for $ 20,000 from Data equipment on credit.d 31 shows $ 1,400 paid $ 2,125 cash the! 1,400 remaining unearned at December 31: Connect Knowledge CheckExercise 3–7 Preparing adjusting entries are made the... 45,000 cash.d 8,000 to be reported on the journal entries to T-accounts, which began operations June... Of Sierra company the acquisition date, Frisco 's stockholders ' equity consisted of common,... 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Adjusted trial balance at December 31, the company for personal use.Dec adjustments to complete a 10-column work sheet.2a day! Supplies, and no withdrawals were made during the year on credit.e and auditor! Rent expense 3,200L 1250 cash adjustments to complete a 10-column work sheet.2a 1,590 of insurance. The questions displayed below. ] these events would then be recorded in the company.Apr 2,150.... Your college classes as the general ledger for this assignment ( 2 ) prepare necessary... Due on January 15.d your electronics waste immediately collected $ 13,200 rent in advance was performed period.e...
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