Dec.	31	Salaries Expense		67.000
			Salaries Payable		67.000
		To record accrued salaries at December 31.

31	Depreciation Expense: Furniture and Fixtures		781.25
		Accumulated Depreciation: Furn. & fixtures		781.25
	To record December depreciation expense
	($187,500 ÷ 240 months).

31	Insurance Expense		383.33
		Unexpired Insurance		383,33
	To record December insurance expense
	($4,600 x 1/12).

31	Interest Expense		40000
		Interest Payable		40000
	To record accrued interest expense in December
	($1,200,000 x 5% x 8/12).

31	Income Taxes Expense		844,30
		Income Taxes Payable		844,30
	To record income taxes accrued in December. 202.631,25 x 25% / 12

31	Unearned Revenue / new contract		13.500
		Revenue / new contract		13.500
	To record the portion of annual membership dues
	earned in December. 450000 x 30%

31	Cash earned	330.000
Building sold	330.000

 

Prepare an after-adjusting entries trial balance.

Prepare an income statement for the year ended December 31, current year.

Prepare an after closing Balance Sheet.

Briefly evaluate the company’s profitability and liquidity.

Transcribed Image Text:

Bangels Corp. delivers auditing services to both small companies and big corporations. The company performs adjusting entries monthly, whereas closing entries are prepared annually on December 31. An unadjusted trial balance dated December 31, current year, follows. Bangels - Unadjusted trial balance December 31st current year Cash Accounts Receivable Prepaid rent Unexpired insurance policies Office supplies Office Equipment Building Acc depreciation Building Acc Depreciation Office Equipment Ac. Payable Notes Payable due 3/1 year 2 Income tax payable Unearned fees Salaries payable Interest payable Capital stock Retained Earnings Dividends Sales Telephone expense Office supply expense Depreciation expense office equipment Depreciation expense building Rent expense Insurance expense Salary expense Income tax expense interest expense Totals 18.687,5 112.500 6.250 625 662,5 187.500 375.000 12.500 50.781,25 25.391,25 1.875 150.000 4.875 6.875 12.500 6.875 25.000 202.631,25 1.250.000 15.000 31.250 21.485 42.968,75 18.750 6.875 875.000 4.875 6.875 1.736.804 1.736.804 Bangels Corp. delivers auditing services to both small companies and big corporations. The company performs adjusting entries monthly, whereas closing entries are prepared annually on December 31. An unadjusted trial balance dated December 31, current year, follows. Bangels - Unadjusted trial balance December 31st current year Cash Accounts Receivable Prepaid rent Unexpired insurance policies Office supplies Office Equipment Building Acc depreciation Building Acc Depreciation Office Equipment Ac. Payable Notes Payable due 3/1 year 2 Income tax payable Unearned fees Salaries payable Interest payable Capital stock Retained Earnings Dividends Sales Telephone expense Office supply expense Depreciation expense office equipment Depreciation expense building Rent expense Insurance expense Salary expense Income tax expense interest expense Totals 18.687,5 112.500 6.250 625 662,5 187.500 375.000 12.500 50.781,25 25.391,25 1.875 150.000 4.875 6.875 12.500 6.875 25.000 202.631,25 1.250.000 15.000 31.250 21.485 42.968,75 18.750 6.875 875.000 4.875 6.875 1.736.804 1.736.804

Answer rating: 100% (QA)

Statements of Profit and Loss and Other Comprehensive Income Sales HK620000 A082 A508400 Cost of Sal... View the full answer