Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A dog training business began on December 1. The following transactions occurred during its first month. December 1 Receives $23,000 cash as an owner investment

A dog training business began on December 1. The following transactions occurred during its first month.

December 1Receives $23,000 cash as an owner investment in exchange for common stock.
December 2Pays $6,360 cash for equipment.
December 3Pays $3,780 cash (insurance premium) for a 12-month insurance policy. Coverage began on December 1.
December 4Pays $1,060 cash for December rent expense.
December 7Provides all-day training services for a large group and immediately collects $1,250 cash.
December 8Pays $215 cash in wages for part-time help.
December 9Provides training services for $2,460 and rents training equipment for $630. The customer is billed $3,090 for these services.
December 19Receives $3,090 cash from the customer billed on Dec. 9.
December 20Purchases $2,030 of supplies on credit from a supplier.
December 23Receives $1,660 cash in advance of providing a 4-week training service to a customer.
December 29Pays $1,315 cash as a partial payment toward the accounts payable of Dec. 20.
December 30Distributed a $515 cash dividend to the owner.

Information for month-end adjustments follows:

December 31One month of the 12-month, $3,780 insurance policy is expired by December 31. This leaves $3,465 not yet expired.
December 31A physical count of supplies on December 31 shows that only $1,215 of supplies remain of the $2,030 supplies purchased.
December 31The $6,360 of equipment purchased at the beginning of December has a useful life of 5 years and will be worth nothing at the end of 5 years (60 months). The business uses straight-line depreciation to allocate the $6,360 net cost over 60 months. On December 31, 1 month of depreciation must be recorded.
December 31The business agreed on December 23 to provide a 4-week training service to a customer for a fixed fee of $1,660 paid in advance. By December 31, the business has provided 1 of the 4 weeks of services and earned one-fourth of the fee. No revenue is yet recorded.
December 31On December 31, wages of $615 are owed to a part-time employee for work done over the past 3 weeks. Those wages are not yet paid or recorded.
December 31The business agreed to provide 6 weeks of training services to a customer for a fee of $4,290, or $715 per week. The customer agrees to pay the full $4,290 at the end of 6 weeks when services are complete. By December 31, 2 weeks of services have been provided, but the business has not yet billed the customer or recorded the 2 weeks of services provided.

student submitted image, transcription available belowstudent submitted image, transcription available below 

Begin by selecting "Post-closing" from the drop-down below. Then, for each account, use the drop-down to indicate whether the account is included on the post-closing trial balance. Based on your decisions, the post-closing trial balance will be created. Compare your results with the Trial Balance tab. Post-closing Account Cash Accounts receivable Supplies Prepaid insurance Equipment Accumulated depreciation Equipment Accounts payable Wages payable Unearned revenue Common stock Retained earnings Dividends Services revenue Rental revenue Depreciation expense-Equipment Included on Post-closing trial balance? Type of Account Post-closing Trial Balance Debit Credit

Step by Step Solution

3.47 Rating (163 Votes )

There are 3 Steps involved in it

Step: 1

Based on the information provided I will help you record the accounting transactions for the dog training business for the first month as well as make ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

9th Edition

1337614689, 1337614688, 9781337668262, 978-1337614689

More Books

Students also viewed these Accounting questions

Question

3. Provide time for independent and extended projects.

Answered: 1 week ago

Question

31. How does Antabuse workpg109

Answered: 1 week ago