Nazari Electrical Services has an August 31 fiscal year end. The company's trial balance prior to...

   

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Nazari Electrical Services has an August 31 fiscal year end. The company's trial balance prior to adjustments follows: Prepare adjusting entries, adjusted trial balance, financial statements, and closing entries. NAZARI ELECTRICAL SERVICES Trial Balance August 31, 2021 Debit Credit Cash $ 13,870 Supplies 23.400 18,000 Debt investments 108,000 Equipment Accumulated depreciation-equipment $ 38,250 Vehicles 98,000 Accumulated depreciation-vehicles 42,875 7115 Accounts payable 4.500 Unearned revenue 48,000 Notes payable A. Nazari, capital 68,175 32,400 A. Nazari, drawings 180,115 Service revenue 360 Interest revenue 25.235 Repairs expense 8,550 Insurance expense 2,535 Interest expense 18,900 Rent expense 40.500 Salaries expense $380.390 $389.390 $380,390 Additional information: 1. The equipment has an expected useful life of 12 years. Tbe vehicles' expected useful lise is eight years. 2. A physical count ahowed $1.500 of supplies on hand at Augast 31, 2021. 3. As at August 31, 2001, there was $2500 of revense received in advance and the related services have not yet been performed. 1. Nazari Electrical Services has an investment in boads that it intends to hold to earn interest until the bonds mature in 1o years. The bonds have an interest rate of 4N and pay interest on March i and September 1 each year. 5- Acerued 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 tup to date as at Augunt 31, 2021. 7. The owner, A. Nazari, invested $3.000 cash in the business on Decenmber 29, 2000. (Note: This haa been ceorrectly recorded.) Instructions a. Prepare the adjusting entries and an adjusted trial balance, b. Calculate profit or loss for the year, c. Prepare a statement of owner's equity and a classified balance sheet. d. Prepare the closing entries. Using T accounts, post to the Income Summary, and Owner's Drawings and Owner's Capital accounts. Compare the ending balance in the Owner's Capital account with the information in the statement of owner's equity. Taking It Further Why do you need to know the amount the owner invested in the business this year if it has been correctly recorded? Nazari Electrical Services has an August 31 fiscal year end. The company's trial balance prior to adjustments follows: Prepare adjusting entries, adjusted trial balance, financial statements, and closing entries. NAZARI ELECTRICAL SERVICES Trial Balance August 31, 2021 Debit Credit Cash $ 13,870 Supplies 23.400 18,000 Debt investments 108,000 Equipment Accumulated depreciation-equipment $ 38,250 Vehicles 98,000 Accumulated depreciation-vehicles 42,875 7115 Accounts payable 4.500 Unearned revenue 48,000 Notes payable A. Nazari, capital 68,175 32,400 A. Nazari, drawings 180,115 Service revenue 360 Interest revenue 25.235 Repairs expense 8,550 Insurance expense 2,535 Interest expense 18,900 Rent expense 40.500 Salaries expense $380.390 $389.390 $380,390 Additional information: 1. The equipment has an expected useful life of 12 years. Tbe vehicles' expected useful lise is eight years. 2. A physical count ahowed $1.500 of supplies on hand at Augast 31, 2021. 3. As at August 31, 2001, there was $2500 of revense received in advance and the related services have not yet been performed. 1. Nazari Electrical Services has an investment in boads that it intends to hold to earn interest until the bonds mature in 1o years. The bonds have an interest rate of 4N and pay interest on March i and September 1 each year. 5- Acerued 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 tup to date as at Augunt 31, 2021. 7. The owner, A. Nazari, invested $3.000 cash in the business on Decenmber 29, 2000. (Note: This haa been ceorrectly recorded.) Instructions a. Prepare the adjusting entries and an adjusted trial balance, b. Calculate profit or loss for the year, c. Prepare a statement of owner's equity and a classified balance sheet. d. Prepare the closing entries. Using T accounts, post to the Income Summary, and Owner's Drawings and Owner's Capital accounts. Compare the ending balance in the Owner's Capital account with the information in the statement of owner's equity. Taking It Further Why do you need to know the amount the owner invested in the business this year if it has been correctly recorded?

Answer rating: 100% (QA)

Method 1 a In the books of Nazari Electrical Services Adjusting entries Date Account Titles Debit Credit Aug 31 2021 1 Depreciation Expense 21250 Accumulated Depreciation Equipment 9000 Accumulated De... View the full answer