Below is the post-closing trial balance for the Allyson Catherine Tax Service as of November 30...
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Below is the post-closing trial balance for the Allyson Catherine Tax Service as of November 30 (these are your beginning balances for December 1). Debit Credit Cash Accounts Receivable Cell Phone (Use straight-line depreciation, a 2 year life and 150 salvage) Accumulated Depreciation Computer (Use straight-line depreciation, a 2 year life and zero salvage) Accumulated Depreciation Car (Use straight-line depreciation, a 5 year life and 1,000 salvage value) Accumulated Depreciation Furniture & Equipment (Use straight-line depreciation, a 5 year life and 0 salvage) Accumulated Depreciation Office Building (Use straight-line depreciation, a 40 year life and expected salvage value of $4,000) Accumulated Depreciation Salaries Payable Electric Payable Loans Payable (Interest accrues at a rate of 1% a month-interest paid annually on June 30) Mortgage Payable (Interest accrues at a rate of 0.5% a month-interest paid annually on June 30) Interest Payable Contributed Capital Retained Earnings Total 22,420 6.100 750 1,800 10,000 15,000 100,000 156,070 25 900 1,500 3,750 2,600 148 440 25,000 90,000 3,500 25,000 3,207 156,070 The following transactions pertain to the month of December 5 Placed advertisements on social media for $600 pay cash 1 Purchased a one-year liability insurance policy for $12,000, paying cash. 8 Collected $3,600 from clients for services rendered and billed in previous months. 15 Collected $2,600 from cash customers for services rendered during the first half of the month. 26 Paid salaries of $1,480, which includes that earned on November 29 & 30, and the remainder of the first four weeks of December, salaries earned from December 27-31 (full week) will be paid in January. 28 Bill clients for services rendered during the second half of the month - $5,500. 28 Owner withdrew $1,900 for personal use. 31 Received electric bill for month, $490; bill included a reminder that the bill for November had not been paid. Allyson went to their website and paid both amounts immediately. Required: 1. Prepare the journal entries for the above transactions 2. Prepare an unadjusted trial balance 3. Prepare all necessary adjusting entries 4. Prepare an adjusted trial balance 5. Prepare the following a. income statement b. statement of owner's equity c. balance sheet Show your work in your excel file, which you will submit before you leave via Canvas, and enter the following answers below, which you will hand in as you leave: Net Income Retained Earnings (Ending) Total Assets (Ending) Total Liabilities (Ending) Total Shareholders Equity (Ending) Below is the post-closing trial balance for the Allyson Catherine Tax Service as of November 30 (these are your beginning balances for December 1). Debit Credit Cash Accounts Receivable Cell Phone (Use straight-line depreciation, a 2 year life and 150 salvage) Accumulated Depreciation Computer (Use straight-line depreciation, a 2 year life and zero salvage) Accumulated Depreciation Car (Use straight-line depreciation, a 5 year life and 1,000 salvage value) Accumulated Depreciation Furniture & Equipment (Use straight-line depreciation, a 5 year life and 0 salvage) Accumulated Depreciation Office Building (Use straight-line depreciation, a 40 year life and expected salvage value of $4,000) Accumulated Depreciation Salaries Payable Electric Payable Loans Payable (Interest accrues at a rate of 1% a month-interest paid annually on June 30) Mortgage Payable (Interest accrues at a rate of 0.5% a month-interest paid annually on June 30) Interest Payable Contributed Capital Retained Earnings Total 22,420 6.100 750 1,800 10,000 15,000 100,000 156,070 25 900 1,500 3,750 2,600 148 440 25,000 90,000 3,500 25,000 3,207 156,070 The following transactions pertain to the month of December 5 Placed advertisements on social media for $600 pay cash 1 Purchased a one-year liability insurance policy for $12,000, paying cash. 8 Collected $3,600 from clients for services rendered and billed in previous months. 15 Collected $2,600 from cash customers for services rendered during the first half of the month. 26 Paid salaries of $1,480, which includes that earned on November 29 & 30, and the remainder of the first four weeks of December, salaries earned from December 27-31 (full week) will be paid in January. 28 Bill clients for services rendered during the second half of the month - $5,500. 28 Owner withdrew $1,900 for personal use. 31 Received electric bill for month, $490; bill included a reminder that the bill for November had not been paid. Allyson went to their website and paid both amounts immediately. Required: 1. Prepare the journal entries for the above transactions 2. Prepare an unadjusted trial balance 3. Prepare all necessary adjusting entries 4. Prepare an adjusted trial balance 5. Prepare the following a. income statement b. statement of owner's equity c. balance sheet Show your work in your excel file, which you will submit before you leave via Canvas, and enter the following answers below, which you will hand in as you leave: Net Income Retained Earnings (Ending) Total Assets (Ending) Total Liabilities (Ending) Total Shareholders Equity (Ending)
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Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Posted Date:
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