The unadjusted trial balance and adjustment data for Nazari Electrical Services are provided. Additional information: 1. The
Question:
The unadjusted trial balance and adjustment data for Nazari Electrical Services are provided.
Additional information:
1. The equipment has an expected useful life of 12 years. The vehicles? expected useful life is eight years.
2. A physical count showed $1,500 of supplies on hand at August 31, 2021.
3. As at August 31, 2021, there was $2,500 of revenue received in advance and the related services have not yet been performed.
4. Nazari Electrical Services has an investment in bonds that it intends to hold to earn interest until the bonds mature in 10 years. The bonds have an interest rate of 4% and pay interest on March 1 and September 1 each year.
5. Accrued salaries payable at August 31, 2021, were $1,850.
6. Interest on the 5% note payable is payable at the end of each month and $8,000 of the principal must be paid on December 31 each year. Interest payments are up to date as at August 31, 2021.
7. The owner, A. Nazari, invested $3,000 cash in the business on December 29, 2020. This has been correctly recorded.
Instructions
Prepare a work sheet for the year ended August 31, 2021.
Explain why preparing a work sheet is an optional step in the accounting cycle.
Step by Step Answer:
Accounting Principles Volume 1
ISBN: 978-1119502425
8th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak