Sanchez Computer Center, continued.
At the end of September, Tony took a complete inventory of his supplies and found the following:
• 5 dozen ¼" screws at a cost of $8.00 a dozen
• 2 dozen ½" screws at a cost of $5.00 a dozen
• 2 cartons of computer inventory paper at a cost of $14 a carton
• 3 feet of coaxial cable at a cost of $4.00 per foot
After speaking to his accountant, he found that a reasonable depreciation amount for each of his long-term assets is as follows:
• Computer purchased July 5, 201X Depreciation $33 a month
• Office equipment purchased July 17, 201X Depreciation $10 a month
• Computer workstations purchased Sept. 17, 201X Depreciation $20 a month
Tony uses the straight-line method of depreciation and declares no salvage value for any of the
assets. If any long-term asset is purchased in the first 15 days of the month, he will charge
depreciation for the full month. If an asset is purchased on the 16th of the month, or later, he will not
charge depreciation in the month it was purchased.
August and September’s rent has now expired.
Tasks
Use your trial balance from the completed problem previously and the adjusting information given
here to complete the worksheet for the three months ended September 30, 201X. From the
worksheets, prepare the financial statements.
Tony decided to end the Sanchez Computer Center’s first year as of September 30, 201X. Following is
an updated chart of accounts.
Chart of Accounts
Assets Revenue
1000 Cash 4000 Service Revenue
1020 Accounts Receivable Expenses
1025 Prepaid Rent 5010 Advertising Expense
1030 Supplies 5020 Rent Expense
1080 Computer Shop Equipment 5030 Utilities Expense
1081 Accum. Depr. C. S. Equip. 5040 Phone Expense
1090 Office Equipment 5050 Supplies Expense
1091 Accum. Depr. Office Equip. 5060 Insurance Expense
Liabilities 5070 Postage Expense
2000 Accounts Payable 5080 Depr. Exp. C. S. Equip.
Owner’s Equity 5090 Depr. Exp. Office Equip.
3000 T. Freedman, Capital
3010 T. Freedman, Withdrawals
3020 Income Summary
Complete the following:
a. Journalize the adjusting entries.
b. Post the adjusting entries to the ledger.
c. Journalize the closing entries.
d. Post the closing entries to the ledger.
e. Prepare a post-closing trial balance.

Previous figures to alter below:

  
 

Transcribed Image Text:

Trial Balance sheet as on 30.09.2018 Liability and owned Assets equity accounts cash 3385 payable 335 freedman supplies 250 capital 5565 freedman Office equipment 1800 withdrawal 4130 equipment 1200 expenses 405 Service revenue 3400 Prepaid rent 400 total total assets 10435 liability 10435 Income statement for the period of September 2018 Revenue electricity exp 95.00 a/c 3,285.00 Telephone exp 65.00 Computer exp 200.00 Rent paid 1,200.00 Income 1,725.00 3,285.00 3,285.00 Trial Balance sheet as on 30.09.2018 Liability and owned Assets equity accounts cash 3385 payable 335 freedman supplies 250 capital 5565 freedman Office equipment 1800 withdrawal 4130 equipment 1200 expenses 405 Service revenue 3400 Prepaid rent 400 total total assets 10435 liability 10435 Income statement for the period of September 2018 Revenue electricity exp 95.00 a/c 3,285.00 Telephone exp 65.00 Computer exp 200.00 Rent paid 1,200.00 Income 1,725.00 3,285.00 3,285.00