Counterpoint Studies Inc. has completed all the entries for the fiscal year ending November 30, 2019, except
Question:
Counterpoint Studies Inc. has completed all the entries for the fiscal year ending November 30, 2019, except the month of November’s adjusting entries. The following information is available to make the adjustments.
Annual depreciation on equipment totals $9,000
Interest accrued on the bank loan is $500
Unbilled services for the month were $8,100
The annual insurance policy was purchased December 1, 208 for $21,900
Additional shares were issued for $3,000 cash
The balances at the beginning of the year for Contributed Capital and Retained Earnings were $10,000 and $26,750 respectively.
Required:
a) Complete the six-column worksheet for Counterpoint Studios Inc. adding line items as needed.
Counterpoint Studios Inc. Worksheet
November 30, 2019
Account Title
Unadjusted Trial Balance
DR CR
Adjusted Trial Adjustments Balance
DR CR DR
CR
Cash
52,250
Accounts Receivable
24,800
Prepaid Insurance
1,825
Equipment
305,800
Accumulated depreciation - Equipment
107,250
Accounts Payable
31,500
Bank Loan
140,000
Contributed Capital
10,000
Retained Earnings
26,750
Service Revenue
382,500
Advertising Expense
100,000
Salaries Expense
185,000
Insurance Expense
20,075
Depreciation Expense
8,250
Total
b) c)
698,000 698,000
Prepare the statement of earnings for the year ended November 30, 2019. Prepare the statement of changes in shareholders’ equity for the year ended November 30, 2019.
Managerial Accounting Tools for business decision making
ISBN: 978-1118096895
6th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso