During the month of March 2022 the company John Services, Ltd. realized the following transactions March...
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During the month of March 2022 the company John Services, Ltd. realized the following transactions March 1, Paid a 12 month insurance policy for $36,000 March 2: Paid the employee $44,000 for their work in February March 4: collects $26,000 as an advanced payment by client Mrs. Glen. The project is to be delivered on March 18 March 18: delivers the project to Mrs. Glen On March 30, Sent service fees to clients besides above mentioned Mrs. Glen for $347,000, all payable before April 15 March 31: records the salaries of March for $47,000 that will be paid on April 3rd The assets of the company are the following: 4 computers with a unit cost of $1,200 purchased on January 2022 and a useful life of 4 years and a car purchased $36,000 on December 31, 2021 with a useful life of 6 years. The company uses straight-line method for depreciation purposes. 1: Prepare the general journal of the company for the month of March 2022 (20 points) 2: Prepare the income statement of the company for the month ended on March 31, 2022 (20 points) Exercise 2: Reporting financial results: (60 points) On April 1st the company Littleco, Ltd showed the following balance sheet Assets Cash Accounts receivable Prepaid insurance Computer systems Accumulated depreciation CPU Land Building Total assets Littleco Ltd Balance sheet, April 1, 2022 143.000 65.800 12.000 24.000 -1.000 132.000 440.000 815.800 Liabilities Note payable Accounts payable Salaries payable Total liabilities Owners Equity Capital stock Retained earnings Total owners equity Total liability + OE During the month of April the revenues and expenses of the company were the following All accounts receivable have been collected All accounts payable listed on the 1" of April Balance sheet have been settled. Recorded revenues for $222,500 paid in cash Recorded salary expenses for 52,000 paid in cash Recorded depreciation expense for the computers for $1,800 428.000 32.600 26.000 486.600 200.000 129.200 329.200 815.800 Recorded water expense for $3,200 payable in May Recorded insurance expense for $1,000 1: Prepare the income statement of the company for the month of April 2022 (20 points) 2: Prepare the closing entries on the general journal of the company (20 points) 3: Prepare a balance sheet of Littleco, Ltd. at April 1st (20 points) During the month of March 2022 the company John Services, Ltd. realized the following transactions March 1, Paid a 12 month insurance policy for $36,000 March 2: Paid the employee $44,000 for their work in February March 4: collects $26,000 as an advanced payment by client Mrs. Glen. The project is to be delivered on March 18 March 18: delivers the project to Mrs. Glen On March 30, Sent service fees to clients besides above mentioned Mrs. Glen for $347,000, all payable before April 15 March 31: records the salaries of March for $47,000 that will be paid on April 3rd The assets of the company are the following: 4 computers with a unit cost of $1,200 purchased on January 2022 and a useful life of 4 years and a car purchased $36,000 on December 31, 2021 with a useful life of 6 years. The company uses straight-line method for depreciation purposes. 1: Prepare the general journal of the company for the month of March 2022 (20 points) 2: Prepare the income statement of the company for the month ended on March 31, 2022 (20 points) Exercise 2: Reporting financial results: (60 points) On April 1st the company Littleco, Ltd showed the following balance sheet Assets Cash Accounts receivable Prepaid insurance Computer systems Accumulated depreciation CPU Land Building Total assets Littleco Ltd Balance sheet, April 1, 2022 143.000 65.800 12.000 24.000 -1.000 132.000 440.000 815.800 Liabilities Note payable Accounts payable Salaries payable Total liabilities Owners Equity Capital stock Retained earnings Total owners equity Total liability + OE During the month of April the revenues and expenses of the company were the following All accounts receivable have been collected All accounts payable listed on the 1" of April Balance sheet have been settled. Recorded revenues for $222,500 paid in cash Recorded salary expenses for 52,000 paid in cash Recorded depreciation expense for the computers for $1,800 428.000 32.600 26.000 486.600 200.000 129.200 329.200 815.800 Recorded water expense for $3,200 payable in May Recorded insurance expense for $1,000 1: Prepare the income statement of the company for the month of April 2022 (20 points) 2: Prepare the closing entries on the general journal of the company (20 points) 3: Prepare a balance sheet of Littleco, Ltd. at April 1st (20 points)
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Answer Exercise 1 John Services Ltd 1 General Journal for March 2022 Date Description Debit Credit M... View the full answer
Related Book For
Financial Accounting Tools for business decision making
ISBN: 978-0470534779
6th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
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