n There is a newly established SERVICE COMPANY as of Jan 01, 2015. You should prepare your
Fantastic news! We've Found the answer you've been seeking!
Question:
n
Transcribed Image Text:
There is a newly established SERVICE COMPANY as of Jan 01, 2015. You should prepare your SA by considering below items to be recorded to the Journal; 1. On the l" of January, some capital from shareholders (1" economic event) is transferred to the company. 2. On the 1" of January, some loan from the creditors (banks) with 12% annual interest rate is deposited to the company's bank account (2 economic event). 3. During January, you will consider 18 more economic events to be registered to the Journal as directed below: a. 3 prepaid expenses, 1 unearned revenues b. 3 accrued expense, 1 accrued revenue c. 1 purchasing a vehicle in the beginning of January, d. 1 purchasing equipment in the beginning of January, e. 1 Freight-in cost for purchasing of equipment, f. 1 Installation cost for the equipment, g. 1 Maintenance cost for the equipment, h. 2 adjustment entries with the bank, i. I month depreciation registration for the Vehicle, j. 1 month depreciation registration for the equipment, k. 1 interest registration for the loan borrowed from the bank. 4. Post the above events to the Ledger 5. At the end of January, a. Prepare Trial Balance b. Record Adjusting Entries c. Prepare Adjusted Trial Balance 6. Prepare Income Statement 7. Prepare Retained Earnings Statement 8. Prepare Balance Sheet There is a newly established SERVICE COMPANY as of Jan 01, 2015. You should prepare your SA by considering below items to be recorded to the Journal; 1. On the l" of January, some capital from shareholders (1" economic event) is transferred to the company. 2. On the 1" of January, some loan from the creditors (banks) with 12% annual interest rate is deposited to the company's bank account (2 economic event). 3. During January, you will consider 18 more economic events to be registered to the Journal as directed below: a. 3 prepaid expenses, 1 unearned revenues b. 3 accrued expense, 1 accrued revenue c. 1 purchasing a vehicle in the beginning of January, d. 1 purchasing equipment in the beginning of January, e. 1 Freight-in cost for purchasing of equipment, f. 1 Installation cost for the equipment, g. 1 Maintenance cost for the equipment, h. 2 adjustment entries with the bank, i. I month depreciation registration for the Vehicle, j. 1 month depreciation registration for the equipment, k. 1 interest registration for the loan borrowed from the bank. 4. Post the above events to the Ledger 5. At the end of January, a. Prepare Trial Balance b. Record Adjusting Entries c. Prepare Adjusted Trial Balance 6. Prepare Income Statement 7. Prepare Retained Earnings Statement 8. Prepare Balance Sheet
Expert Answer:
Answer rating: 100% (QA)
Accounting cycle is a process of identifying evaluating and recording economic transactions It invol... View the full answer
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
Posted Date:
Students also viewed these mathematics questions
-
There is a newly established MERCHANDISING COMPANY as of Jan 01, 2015. You can assume that it uses FIFO Inventory Flow Method, periodically. You should prepare your SA by considering below items to...
-
Rox Corporations multiple-step income statement and retained earnings statement for the year ended December 31, 2016, as developed by its bookkeeper, are shown here: Retained Earnings Statement...
-
Patterns for Africa ('PFA') is a newly established organization in Johannesburg, South Africa. PFA provides jobs to jobless people who have crafting skills. PFA specializes in the making and sale of...
-
Let Z[] be the following set of rational numbers { a Z, k N} (and recall that N = {0, 1, 2,...} in this class). Let the addition and multiplication for Z[] be the usual addition and multiplication...
-
How does tying differ from bundling? Why might a firm want to practice tying?
-
Locate a person who is about to make a major purchase. Ask that person to make a chronological list of all the information sources consulted before` making a decision. How would you characterize the...
-
Your company has a number of capital construction contracts, some of which have started and others that are about to start. Outline the different stages of the capital contract process the auditor...
-
Internet CaseCalPFRS. While the examples in this chapter have focused on a single-employer plan, many states operate statewide plans, referred to as Public Employee Retirement Systems (PERS), to...
-
should social media be a "first amendment zone" where all speech (no matter how inaccurate or offensive) be allowed without restriction? Or, should these for-profit platforms operate under...
-
Since its 100% acquisition of Dancer Corporation stock on December 31, 2012, Jones Corporation has maintained its investment under the equity method. However, due to Dancer's earning potential, the...
-
5._____ Leukemia refers to cancerous conditions involving red blood cells . 46._____ When neither anti-A nor anti-B clots on a plate, the blood type must be O negative. 47._____ Circulatory shock is...
-
2. (a) Explain five reasons why a marketing manager should understand consumer behaviour. (10 marks) (b) Fobel Limited segments its market psychographically. Explain five reasons that may have led...
-
Determine the cost of the ending work in process inventory for the Mixing Department for materials, labor, overhead, and total for May. Also, calculate the cost of the completed units transferred to...
-
Many students are surprised to learn that contracts made orally are generally enforceable, unless the subject of the agreement falls within the scope of the Statute of Frauds or another statutory...
-
Describe how a distribution of incentive payments under a Medicaid ACO can potentially implicate the Stark Law?
-
With respect to production volume variance, what variables might a manager be able to adjust mid - year to "make the operation more efficient and less costly " ? What variables would he most likely...
-
Required information 1 Chapter 2: Applying Excel 2 3 Cost summary for Job 408 Department 4 Milling Assembly 5 Machine-hours 70 4 6 Direct labor-hours 8 40 7 Direct materials cost $ 810 $ 460 8 Direct...
-
Explain the regulation of the secretions of the small intestine.
-
The following information pertains to Baxter Company for 2013: Beginning inventory ...... 90 units @ $15 Units purchased .........320 units @ $19 Ending inventory consisted of 40 units. Baxter sold...
-
Asmus Company issued $300,000 face value of bonds on January 1, 2013. The bonds had a 6 percent stated rate of interest and a 10-year term. Interest is paid in cash annually, beginning December 31,...
-
On January 1, 2013, Sanita Company had a balance of $76,300 in its Office Equipment account. During 2013, Sanita purchased office equipment that cost $30,300. The balance in the Office Equipment...
-
Find the fundamental frequency of longitudinal vibration of the tapered bar shown in Fig. 8.41, using Rayleigh's method with the mode shape \[U(x)=c_{1} \sin \frac{\pi x}{2 l}\] The mass per unit...
-
Approximate the fundamental frequency of a rectangular membrane supported along all the edges by using Rayleigh's method with \[W(x, y)=c_{1} x y(x-a)(y-b)\] \[V=\frac{P}{2}...
-
The root mean square value of a signal \(x(t), x_{\mathrm{rms}}\), is defined as \[x_{\mathrm{rms}}=\left\{\lim _{T ightarrow \infty} \frac{1}{T} \int_{0}^{T} x^{2}(t) d t ight\}^{1 / 2}\] Using this...
Study smarter with the SolutionInn App