New Education Agency is a business which provides coaching and consulting service to students, parents and...

 

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New Education Agency is a business which provides coaching and consulting service to students, parents and institutions. Some clients pay in advance with payments credited to Unearned agency fees; others are billed after services have been performed. An adjusted trial balance dated November 30, 2022 follows. Cash Fees receivable Prepaid rent Unexpired insurance policies Office supplies Office equipment New Education Agency Adjusted Trial Balance 30 November, 2022 Accumulated depreciation: office equipment Accounts payable Income taxes payable Dividend payable Uneamed agency fees Salaries payable Share capital Retained earnings Dividends Agency fees earned Telephone expense Office supply expense Depreciation expense: office equipment Rent expense Insurance expense Salaries expense Income taxes expense Totals 14,845 34,240 1,500 720 640 21,000 400 880 1,080 1,925 5,500 1,980 19,850 3,350 107,910 6,125 2,385 3,350 400 7,700 1,210 40,000 10,800 35,940 107,910 Below are the transactions of the company in December 2022: Dec 1 Issued 1,000 shares of share capital in exchange for $10,000 cash Borrowed $11,000 from bank by issuing 6-month notes payable. Purchased office supplies that cost $500 with $230 cash and the balance on account. Paid the dividend of $400 declared in October 2022 which become due on 7 December 2022 to shareholders. 10 Billed clients $3,560 for agency service performed, with $2,000 collected immediately by cash and the balance due in next month. 13 Received $2,000 from clients in advance for service to be conducted over the next few months. 2. 2 3 9. 7 Instructions (a) Journalize the December transactions. (b) Post the journal entries to the T-accounts. (c) Prepare an unadjusted trial balance at 31 December 2022. (d) Refer to the following information, journalize adjusting entries for the month of December 2022. 17 Collected fees receivable of $5,800 from a client. 21 Issued a check in full payment of the office supplies purchased on 3 December. 26 Declared a dividend of $400 to be paid on 24 February 2023. 30 Paid December's salary expense of $1,790 and settled all salary payable outstanding. 1. Records show that $4,200 of cash receipts originally recorded as Unearned agency fees had been earned as of 31 December. Office Equipment have a useful life of 10 years, to be depreciated using straight line method. 3. The company had paid $2,160 cash on 1 April for an annual insurance policy effective April 1. 4. The company had paid $3,000 cash on 1 September for a 6-month rent effective 1 September. 5. 6. 7. were $8,300. 8. The balance of notes payable represents a 6-month 6% note signed on 1 December 2022, with all interests and the balance to be settled on maturity The company's CPA estimates that me taxes expense for the year is $4,200. Accrued but unpaid employee salaries were $3,150. A count shows $720 of supplies on hand at 31 December.. Agency services performed but unbilled and uncollected at 31 December (e) Prepare an adjusted trial balance at 31 December 2022. New Education Agency is a business which provides coaching and consulting service to students, parents and institutions. Some clients pay in advance with payments credited to Unearned agency fees; others are billed after services have been performed. An adjusted trial balance dated November 30, 2022 follows. Cash Fees receivable Prepaid rent Unexpired insurance policies Office supplies Office equipment New Education Agency Adjusted Trial Balance 30 November, 2022 Accumulated depreciation: office equipment Accounts payable Income taxes payable Dividend payable Uneamed agency fees Salaries payable Share capital Retained earnings Dividends Agency fees earned Telephone expense Office supply expense Depreciation expense: office equipment Rent expense Insurance expense Salaries expense Income taxes expense Totals 14,845 34,240 1,500 720 640 21,000 400 880 1,080 1,925 5,500 1,980 19,850 3,350 107,910 6,125 2,385 3,350 400 7,700 1,210 40,000 10,800 35,940 107,910 Below are the transactions of the company in December 2022: Dec 1 Issued 1,000 shares of share capital in exchange for $10,000 cash Borrowed $11,000 from bank by issuing 6-month notes payable. Purchased office supplies that cost $500 with $230 cash and the balance on account. Paid the dividend of $400 declared in October 2022 which become due on 7 December 2022 to shareholders. 10 Billed clients $3,560 for agency service performed, with $2,000 collected immediately by cash and the balance due in next month. 13 Received $2,000 from clients in advance for service to be conducted over the next few months. 2. 2 3 9. 7 Instructions (a) Journalize the December transactions. (b) Post the journal entries to the T-accounts. (c) Prepare an unadjusted trial balance at 31 December 2022. (d) Refer to the following information, journalize adjusting entries for the month of December 2022. 17 Collected fees receivable of $5,800 from a client. 21 Issued a check in full payment of the office supplies purchased on 3 December. 26 Declared a dividend of $400 to be paid on 24 February 2023. 30 Paid December's salary expense of $1,790 and settled all salary payable outstanding. 1. Records show that $4,200 of cash receipts originally recorded as Unearned agency fees had been earned as of 31 December. Office Equipment have a useful life of 10 years, to be depreciated using straight line method. 3. The company had paid $2,160 cash on 1 April for an annual insurance policy effective April 1. 4. The company had paid $3,000 cash on 1 September for a 6-month rent effective 1 September. 5. 6. 7. were $8,300. 8. The balance of notes payable represents a 6-month 6% note signed on 1 December 2022, with all interests and the balance to be settled on maturity The company's CPA estimates that me taxes expense for the year is $4,200. Accrued but unpaid employee salaries were $3,150. A count shows $720 of supplies on hand at 31 December.. Agency services performed but unbilled and uncollected at 31 December (e) Prepare an adjusted trial balance at 31 December 2022.

Answer rating: 100% (QA)

SOLUTION a Journalize the December transactions Dec 3 Office Supplies 500 Accounts Payable 270 Cash 230 Dec 10 Accounts Receivable 3560 Agency Fees Earned 3560 Dec 13 Cash 2000 Unearned Agency Fees 20... View the full answer