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• 1-Prepare adjusting journal entries
• 2-Prepare reversing entries
• 3-Prepare a journal of closing entries. 
• 4- Prepare an income statement.
• 5-Prepare a statement of equity.
• 6- Prepare a balance sheet

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IBS Company's unadjusted trial balance on December 31, 2011, the end of its annual accounting period, is as follows: Account Debit Credit Cash $ 73,725 Note receivable. 37,500 Office supplies 4,200 Land. 45,000 Unearned service fees.. $ 18,000 Note payable. Jean Boat, capital. Jean Boat, withdrawals. Service fees earned. 90,000 37,500 60,000 267,000 Interest revenue. 2,550 Rent revenue. 12,375 Salaries expense. Insurance expense. Interest expense.. Totals. 193,500 4,950 8,550 $427,425 $427,425 Information necessary to prepare adjusting entries is as follows: a. Employees, who are paid $7,500 every two weeks, have earned $5,250 since the last payment. The next payment of $7,500 will be on January 4. b. IBS rents office space to a tenant who has paid only $450 of the $1,125 rent for December. On January 12, the tenant will pay the remainder along with the rent for January. c. An inventory of office supplies discloses $675 of unused supplies. d. Premiums for insurance against injuries to employees are paid monthly. The $450 premium for December will be paid January 12. e. IBS owes $90,000 on a note payable that requires quarterly payments of accrued interest. The quarterly payments of $2,700 each are made on the 1Sth of January, April, July, and October. f. An analysis of IBS's service contracts with customers shows that $6,300 of the amount customers have prepaid remains unearned. g. 1BS has a $37,500 note receivable on which interest of $175 has accrued. On January 22, the note and the total accrued interest of $575 will be repaid to IBs. h. IBS has earned but unrecorded revenue for $8,250 for services provided to a customer who will pay tor the vrork on January 24. At that time, the customer will also pay $3,100 for services IBS will pertorm in early January. IBS Company's unadjusted trial balance on December 31, 2011, the end of its annual accounting period, is as follows: Account Debit Credit Cash $ 73,725 Note receivable. 37,500 Office supplies 4,200 Land. 45,000 Unearned service fees.. $ 18,000 Note payable. Jean Boat, capital. Jean Boat, withdrawals. Service fees earned. 90,000 37,500 60,000 267,000 Interest revenue. 2,550 Rent revenue. 12,375 Salaries expense. Insurance expense. Interest expense.. Totals. 193,500 4,950 8,550 $427,425 $427,425 Information necessary to prepare adjusting entries is as follows: a. Employees, who are paid $7,500 every two weeks, have earned $5,250 since the last payment. The next payment of $7,500 will be on January 4. b. IBS rents office space to a tenant who has paid only $450 of the $1,125 rent for December. On January 12, the tenant will pay the remainder along with the rent for January. c. An inventory of office supplies discloses $675 of unused supplies. d. Premiums for insurance against injuries to employees are paid monthly. The $450 premium for December will be paid January 12. e. IBS owes $90,000 on a note payable that requires quarterly payments of accrued interest. The quarterly payments of $2,700 each are made on the 1Sth of January, April, July, and October. f. An analysis of IBS's service contracts with customers shows that $6,300 of the amount customers have prepaid remains unearned. g. 1BS has a $37,500 note receivable on which interest of $175 has accrued. On January 22, the note and the total accrued interest of $575 will be repaid to IBs. h. IBS has earned but unrecorded revenue for $8,250 for services provided to a customer who will pay tor the vrork on January 24. At that time, the customer will also pay $3,100 for services IBS will pertorm in early January.

Answer rating: 100% (QA)

Adjusting Journal Entries Reversing Entries Event General Journal ... View the full answer