The following are the trial balance and the other information related to Yorkis Perez, a consulting engineer.

1. Fees received in advance from clients $6,000.

1. Fees received in advance from clients $6,880.

2. Services performed for clients that were not recorded by December 31, $5,740.

3. Bad debt expense for the year is $1,780.

4. Insurance expired during the year $380.

5. Equipment is being depreciated at 10% per year.

6. Yorkis Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2014.

7. Rent of the building is $690 per month. The rent for 2014 has been paid, as has that for January 2015.

8. Office salaries and wages earned but  unpaid December 31, 2014, $2,510.

Instructions

(a) From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2014. (Omit explanations.)

(b) Prepare an income statement for 2014, a statement of owner’s equity, and a classified balance sheet. Yorkis Perez withdrew $17,000 cash for personal use during the year.

Transcribed Image Text:

YORKIS PEREZ, CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2014 Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts $ 29,500 49,600 750 Inventory Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Owner's Capital Service Revenue 1,960 1,100 25,000 6,250 7.200 35,010 100,000 Rent Expense Salaries and Wages Expense Utilities Expenses Office Expense 9,750 30,500 1,080 720 $149.210 $149.210 YORKIS PEREZ, CONSULTING ENGINEER TRIAL BALANCE DECEMBER 31, 2014 Debit Credit Cash Accounts Receivable Allowance for Doubtful Accounts $ 29,500 49,600 750 Inventory Prepaid Insurance Equipment Accumulated Depreciation-Equipment Notes Payable Owner's Capital Service Revenue 1,960 1,100 25,000 6,250 7.200 35,010 100,000 Rent Expense Salaries and Wages Expense Utilities Expenses Office Expense 9,750 30,500 1,080 720 $149.210 $149.210

Answer rating: 100% (QA)

Answer Income Statement Income Statement for 2017 Service Revenue 100000 4900 6000 98900 Expenses Re... View the full answer