ABC Company began an accounting firm on January 1. During January, the following transactions have occurred:...

 

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ABC Company began an accounting firm on January 1. During January, the following transactions have occurred: Januar 1 The owner invested 700,000 in the business consisting of 300,000 cash and 400,000 worth of office equipment. y 2 Purchased 410,000 worth of various furniture to be used in the business on account. 5 Purchased 250,000 worth of equipment on credit for thirty monthly installment payments. Purchased office supplies for cash, 20,000. 1 Rendered accounting services to various clients for cash, 60,000. 0 1 Rendered accounting service for a client and sent a bill for 90,000 to be paid 2 within sixty days. Paid the semi-monthly salaries of employees, 52,000. Collected 45,000 cash on the amount owed by the March 12 client. 2 Rendered 80,000 worth of accounting service to another client. The client 0 only paid one-fourth of the amount and promised to pay the remaining balance within thirty days. The owner withdrew 6,000 cash for own use. 6 15182 2228. 2 Received Globe Telecom bill, 4,700 and Meralco bill, 3,600. 3 Paid the semi-monthly salaries of employees. 0 Paid rent for the month of March, 12,000. Paid the first installment to settle the liability on the equipment purchased. Using the accounting equation determine the following balances 31. Total assets? 32. Total liabilities? 33. Total capital/equity? A company has unpaid salaries amounting to 10,000 at the end of the year 2020. 2. A company has performed 12,000 of services that have not been billed as of year-end. 3. A company borrowed or loaned 100,000 on November 1, 2020, by signing a six-month note that specifies interest at an annual percentage rate (APR) of 12%. No interest or principal payment is due until the note matures on April 30, 2021. 4. A company purchased a two-year insurance policy on August 1, 2020, for 32,400(Asset Method) 5. The company is engaged in constructing and renting office space to various businesses. On October 1, 2020, one tenant gave 128,000 cash for eight month's rents. (Liability Method) 6. A company acquired an equipment on January 1, 2020 at a cost of 100,000. The equipment has an estimated useful life of 5 years and an estimated salvage value of 10,000. Prepare the adjusting entry on December 31, 2020, of the above transactions. ABC Company began an accounting firm on January 1. During January, the following transactions have occurred: Januar 1 The owner invested 700,000 in the business consisting of 300,000 cash and 400,000 worth of office equipment. y 2 Purchased 410,000 worth of various furniture to be used in the business on account. 5 Purchased 250,000 worth of equipment on credit for thirty monthly installment payments. Purchased office supplies for cash, 20,000. 1 Rendered accounting services to various clients for cash, 60,000. 0 1 Rendered accounting service for a client and sent a bill for 90,000 to be paid 2 within sixty days. Paid the semi-monthly salaries of employees, 52,000. Collected 45,000 cash on the amount owed by the March 12 client. 2 Rendered 80,000 worth of accounting service to another client. The client 0 only paid one-fourth of the amount and promised to pay the remaining balance within thirty days. The owner withdrew 6,000 cash for own use. 6 15182 2228. 2 Received Globe Telecom bill, 4,700 and Meralco bill, 3,600. 3 Paid the semi-monthly salaries of employees. 0 Paid rent for the month of March, 12,000. Paid the first installment to settle the liability on the equipment purchased. Using the accounting equation determine the following balances 31. Total assets? 32. Total liabilities? 33. Total capital/equity? A company has unpaid salaries amounting to 10,000 at the end of the year 2020. 2. A company has performed 12,000 of services that have not been billed as of year-end. 3. A company borrowed or loaned 100,000 on November 1, 2020, by signing a six-month note that specifies interest at an annual percentage rate (APR) of 12%. No interest or principal payment is due until the note matures on April 30, 2021. 4. A company purchased a two-year insurance policy on August 1, 2020, for 32,400(Asset Method) 5. The company is engaged in constructing and renting office space to various businesses. On October 1, 2020, one tenant gave 128,000 cash for eight month's rents. (Liability Method) 6. A company acquired an equipment on January 1, 2020 at a cost of 100,000. The equipment has an estimated useful life of 5 years and an estimated salvage value of 10,000. Prepare the adjusting entry on December 31, 2020, of the above transactions.