Sandy's Services provides consulting and research services to its customers and its fiscal year end is...

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Sandy's Services provides consulting and research services to its customers and its fiscal year end is December 31. Additional information available at the December 31, 2015 year is: a. A physical count at year end shoes that $2,300 in supplies are on hand. b. The prepaid insurance covers the period from March 1, 2015 through February 29, 2016. c. The estimated annual equipment depreciation is $12,000. d. The estimated annual service vehicle depreciation is $4,500. e. The prepaid rent covers the period from August 1, 2015 through July 31, 2016. f. Staff at Sandy's Services are paid monthly on the 2nd of the month following the hours worked. So, hours worked in February are paid in March and so on. During December staff worked a total of 140 hours and they earn $22/hour. Ignore any and all payroll deductions. g. On November 1 Sandy's Services entered into an agreement with Mark Fuller to provide consulting services throughout November and December and they collected $5,000 in advance and recorded this as unearned consultation fees. The services were provided in full by December 20 but no adjustments have been made yet. h. On December 15 Sandy's Services entered into an agreement with Robert Rabbin to provide consulting services starting January 15, 2016, but because Robert paid them in advance on December 15, 2015, they recorded the $10,000 received as Consulting Revenue at that time. i. On January 21, 2016 a $75 utility bill for the period from December 1 through December 31, 2015 was received. The unadjusted trial balance as at December 31, 2015 is as follows: Sandy's Services Unadjusted Trial Balance 31-Dec-15 Unadjusted Trial Balance Account Debit Credit Cash $28,000 0 Accounts receivable $15,200 0 Supplies $4,200 0 Prepaid insurance $3,600 0 Prepaid rent $10,800 0 Service Vehicle $50,000 0 Accum. deprec., Service Vehicle $0 $ 18,000 Equipment $120,000 $ - Accum. deprec., equipment $0 $ 36,000 Accounts payable $0 $ 4,900 Salaries payable $0 $ - Unearned consultation fees $0 $ 5,000 Sandy Shores, capital - Note: Includes a $20,000 cash investment made during the year. $0 $189,800 Sandy Shores, Withdrawals $102,200 $ Consulting Revenue $0 $219,500 Research Revenue $0 $ 82,600 Depreciation expense, equipment $0 vehicle Depreciation expense, service Salaries expense $0 $194,800 $ Insurance expense $600 $ Rent expense Supplies expense $5,400 $ $0 Advertising expense Utilities expense Totals $11,700 $9,300 $555,800 $555,800 Note: No new accounts need to be created. Required: a. Enter the unadjusted trial balance information into the appropriate columns of the worksheet you created. b. Use the Excel =Sum function to verify the Unadjusted Trial Balance totals balance and agree with the totals in the unadjusted trial balance provided. c. Sandy's Services makes all adjusting entries at year end. Prepare the required adjusting journal entries on a separate workbook page in general journal format (see textbook page 144 for an example of this format). Make sure all calculations are shown, but you may omit explanations. d. Prepare the worksheet for Sandy's Services, completing the "Adjustments" columns using the information from the adjusting journal entries prepared in step "c" above, completing columns for an "Adjusted Trial Balance" and a "Post-Closing Trial Balance", and making sure to include journal entry references. e. On separate Excel sheets within the same workbook (file), prepare an Income Statement, a Statement of Changes in Equity, and a classified Statement of Financial Position for Sandy's Services as at their yearend. Financial statements must be in good form, including correctly identifying the name of the business, the name of the statement and the period covered by the statement. All elements of the statement must be correctly identified, with subtotals and/or totals, where appropriate. (Hint: Refer to the sample worksheet and financial statements for Vertically Inclined on textbook pages 239 through 242. Note, however, that you must prepare a classified balance sheet, an example of which can be found on textbook page 255). f. Prepare general journal entries to close the temporary accounts (closing entries). g. Prepare a Post-Closing Trial Balance in proper format. Sandy's Services provides consulting and research services to its customers and its fiscal year end is December 31. Additional information available at the December 31, 2015 year is: a. A physical count at year end shoes that $2,300 in supplies are on hand. b. The prepaid insurance covers the period from March 1, 2015 through February 29, 2016. c. The estimated annual equipment depreciation is $12,000. d. The estimated annual service vehicle depreciation is $4,500. e. The prepaid rent covers the period from August 1, 2015 through July 31, 2016. f. Staff at Sandy's Services are paid monthly on the 2nd of the month following the hours worked. So, hours worked in February are paid in March and so on. During December staff worked a total of 140 hours and they earn $22/hour. Ignore any and all payroll deductions. g. On November 1 Sandy's Services entered into an agreement with Mark Fuller to provide consulting services throughout November and December and they collected $5,000 in advance and recorded this as unearned consultation fees. The services were provided in full by December 20 but no adjustments have been made yet. h. On December 15 Sandy's Services entered into an agreement with Robert Rabbin to provide consulting services starting January 15, 2016, but because Robert paid them in advance on December 15, 2015, they recorded the $10,000 received as Consulting Revenue at that time. i. On January 21, 2016 a $75 utility bill for the period from December 1 through December 31, 2015 was received. The unadjusted trial balance as at December 31, 2015 is as follows: Sandy's Services Unadjusted Trial Balance 31-Dec-15 Unadjusted Trial Balance Account Debit Credit Cash $28,000 0 Accounts receivable $15,200 0 Supplies $4,200 0 Prepaid insurance $3,600 0 Prepaid rent $10,800 0 Service Vehicle $50,000 0 Accum. deprec., Service Vehicle $0 $ 18,000 Equipment $120,000 $ - Accum. deprec., equipment $0 $ 36,000 Accounts payable $0 $ 4,900 Salaries payable $0 $ - Unearned consultation fees $0 $ 5,000 Sandy Shores, capital - Note: Includes a $20,000 cash investment made during the year. $0 $189,800 Sandy Shores, Withdrawals $102,200 $ Consulting Revenue $0 $219,500 Research Revenue $0 $ 82,600 Depreciation expense, equipment $0 vehicle Depreciation expense, service Salaries expense $0 $194,800 $ Insurance expense $600 $ Rent expense Supplies expense $5,400 $ $0 Advertising expense Utilities expense Totals $11,700 $9,300 $555,800 $555,800 Note: No new accounts need to be created. Required: a. Enter the unadjusted trial balance information into the appropriate columns of the worksheet you created. b. Use the Excel =Sum function to verify the Unadjusted Trial Balance totals balance and agree with the totals in the unadjusted trial balance provided. c. Sandy's Services makes all adjusting entries at year end. Prepare the required adjusting journal entries on a separate workbook page in general journal format (see textbook page 144 for an example of this format). Make sure all calculations are shown, but you may omit explanations. d. Prepare the worksheet for Sandy's Services, completing the "Adjustments" columns using the information from the adjusting journal entries prepared in step "c" above, completing columns for an "Adjusted Trial Balance" and a "Post-Closing Trial Balance", and making sure to include journal entry references. e. On separate Excel sheets within the same workbook (file), prepare an Income Statement, a Statement of Changes in Equity, and a classified Statement of Financial Position for Sandy's Services as at their yearend. Financial statements must be in good form, including correctly identifying the name of the business, the name of the statement and the period covered by the statement. All elements of the statement must be correctly identified, with subtotals and/or totals, where appropriate. (Hint: Refer to the sample worksheet and financial statements for Vertically Inclined on textbook pages 239 through 242. Note, however, that you must prepare a classified balance sheet, an example of which can be found on textbook page 255). f. Prepare general journal entries to close the temporary accounts (closing entries). g. Prepare a Post-Closing Trial Balance in proper format.