Additional Information: 1. The amount in the prepaid insurance represents a 5 year insurance policy that started
Question:
Additional Information:
1. The amount in the prepaid insurance represents a 5 year insurance policy that started 1 December, 2018.
2. An inventory of Office supplies at 31 December, 2018 revealed that office supplies on hand amounted to $7000.
3. The Office Building has an estimated useful life of 20 years, residual value $10,000 and depreciation is calculated using the straight line method.
4. The Selling Equipments has an estimated useful life of 8 years, residual value $10,000 and depreciation is calculated using the Double Declining balance method.
5. The 20000 credited to the unearned Sales revenue in the unadjusted trial balance represent advance payment for a 4 year service contract that started 1 October, 2018.
6. Accrued Salesmen Salaries at the end of the year, $1000.
7. Estimated Income taxes for the year, $ 5000
Required:
1. Prepare the adjusting Entries
2. Prepare an Adjusted Trial Balance at 31 December 2018.
3. Prepare a Classified Income Statement for the year ended 31 December 2018.
4. Prepare a Statement of Changes in Equity for the year ended 31 December 2018.
5. Prepare a Classified Statement of Financial Position as at 31 December 2018.
College Accounting A Practical Approach chapte
ISBN: 9780133791006
13th edition
Authors: Jeffrey Slater