Elmore & Co. is an engineering firm with offices in several cities in the Mid-Atlantic region....

 

Transcribed Image Text:

Elmore & Co. is an engineering firm with offices in several cities in the Mid-Atlantic region. Elmore's fiscat year-end is December 31, and it prepares financial statements just once a year, at year-end. For bookkeeping purposes, Elmore has adopted a policy to record payments and collections in advance into asset and liability accounts, respectively. The company's unadjusted trial balance at December 31, 2022 is shown below. All accounts have normal-side balances. Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Advertising Expense Allowance for Doubtful Accounts $ 372,590 729,340 497,175 213,860 19,410 950,601 171,000 46,720 891,480 116oembe Cash Common Stock ($2 par) Dividends Declared Equipment Insurance Expense Interest Expense Land 318.670 Maintenance Expense Notes Payable Prepaid Rent Rent Expense Retained Earnings. Salaries and Wages Expense 51,230 347.510 58,740 926,000 289,624 403,920 839,490 942,380 2,371,650 16,910 243.130 179,460 Service Revenue Supplies Expense Unearned Service Revenue Utilities Expense Additional information available at year-end is as follows: Elmore performed $65,370 of engineering services for several clients in December 2022 that it has not yet billed, recorded or collected. 1. Elmore operates 5 days a week, Mondays through Fridays. Employees are paid each Tuesday, for hours worked through the previous Friday. On Tuesday, December 27, 2022, the last payday in 2022, Elmore paid its employees for hours worked during the week of December 19-23. The company gave Monday, December 26 as a paid holiday. The employees then worked their regular schedule through the end of the year. Elmore's payroll averages $3,590 per day. 2. On November 1, 2022, Elmore purchased a 15-month insurance policy for $147,630 and paid the full cost of the policy in advance. The policy provides coverage through January 31, 2024. Note -Contrary to the company's normal practice, Elmore's bookkeeper recorded the prepayment into the Insurance Expense account. Give the adjusting entry needed when a company uses the expense approach to record a payment in advance. 4. The Notes Payable balance relates to a bank loan taken in 2021 that is payable in full on August 31, 2026. The loan agreement specifies that Elmore pay interest annually on August 31 at the rate of 6.80% per vear, Elmore's bookkeeper made the proper entry for the first interest payment, on August 31, 2022. (Hint - Think about the entry Elmore made on August 31, 2022.) 5. Elmore purchased its equipment in 2014. The company depreciates its fixed assets according to the straight-line method. For the equipment, it uses estimates of 12 years for the useful life and $96,000 for the salvage value. 6. In October 2022, Elmore received $243,130 from a client as payment in advance on a new engineering services engagement. As of December 31, 2022, Elmore had completed $194,760 of these services. 7. Elmore estimates that 7.05% of the 2022 year-end accounts receivable balance will not be collected. 8. On January 20, 2023, Elmore received bills for December 2022 utifities totaling S18,290. The company paid all of these bills in late January 2023. On July 1, 2022, Elmore signed an 8-month lease to gain short-term access to additional building space. On that same date. Elmore prepaid the full 8-month rental charge totaling $289,624. The prepayment covers the period July 2022 through February 2023. 9. The company's income tax rate for the year is 30%. (Hint - The income tax rate is applied to the company's income after all revenues and expenses have been considered except for the income tax charge.) 10. - Instructions - Complete the following three tasks relating to Elmore & Co.'s accounting process at year-end 2022: Prepare an unadjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order, <0.5> (a) (b) Prepare the adjusting journal entries needed at December 31, 2022. <|3.5> Prepare an adjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order. <1.0> (c) Please observe the following checklist of instructions as you complete this assignment: Prepare your journal entries and trial balances using Excel. Show how you derived the amounts you present that were not given in the problem. Round all dollar amounts you present in your journal entries and trial balances to the nearest dollar. Elmore & Co. is an engineering firm with offices in several cities in the Mid-Atlantic region. Elmore's fiscat year-end is December 31, and it prepares financial statements just once a year, at year-end. For bookkeeping purposes, Elmore has adopted a policy to record payments and collections in advance into asset and liability accounts, respectively. The company's unadjusted trial balance at December 31, 2022 is shown below. All accounts have normal-side balances. Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Advertising Expense Allowance for Doubtful Accounts $ 372,590 729,340 497,175 213,860 19,410 950,601 171,000 46,720 891,480 116oembe Cash Common Stock ($2 par) Dividends Declared Equipment Insurance Expense Interest Expense Land 318.670 Maintenance Expense Notes Payable Prepaid Rent Rent Expense Retained Earnings. Salaries and Wages Expense 51,230 347.510 58,740 926,000 289,624 403,920 839,490 942,380 2,371,650 16,910 243.130 179,460 Service Revenue Supplies Expense Unearned Service Revenue Utilities Expense Additional information available at year-end is as follows: Elmore performed $65,370 of engineering services for several clients in December 2022 that it has not yet billed, recorded or collected. 1. Elmore operates 5 days a week, Mondays through Fridays. Employees are paid each Tuesday, for hours worked through the previous Friday. On Tuesday, December 27, 2022, the last payday in 2022, Elmore paid its employees for hours worked during the week of December 19-23. The company gave Monday, December 26 as a paid holiday. The employees then worked their regular schedule through the end of the year. Elmore's payroll averages $3,590 per day. 2. On November 1, 2022, Elmore purchased a 15-month insurance policy for $147,630 and paid the full cost of the policy in advance. The policy provides coverage through January 31, 2024. Note -Contrary to the company's normal practice, Elmore's bookkeeper recorded the prepayment into the Insurance Expense account. Give the adjusting entry needed when a company uses the expense approach to record a payment in advance. 4. The Notes Payable balance relates to a bank loan taken in 2021 that is payable in full on August 31, 2026. The loan agreement specifies that Elmore pay interest annually on August 31 at the rate of 6.80% per vear, Elmore's bookkeeper made the proper entry for the first interest payment, on August 31, 2022. (Hint - Think about the entry Elmore made on August 31, 2022.) 5. Elmore purchased its equipment in 2014. The company depreciates its fixed assets according to the straight-line method. For the equipment, it uses estimates of 12 years for the useful life and $96,000 for the salvage value. 6. In October 2022, Elmore received $243,130 from a client as payment in advance on a new engineering services engagement. As of December 31, 2022, Elmore had completed $194,760 of these services. 7. Elmore estimates that 7.05% of the 2022 year-end accounts receivable balance will not be collected. 8. On January 20, 2023, Elmore received bills for December 2022 utifities totaling S18,290. The company paid all of these bills in late January 2023. On July 1, 2022, Elmore signed an 8-month lease to gain short-term access to additional building space. On that same date. Elmore prepaid the full 8-month rental charge totaling $289,624. The prepayment covers the period July 2022 through February 2023. 9. The company's income tax rate for the year is 30%. (Hint - The income tax rate is applied to the company's income after all revenues and expenses have been considered except for the income tax charge.) 10. - Instructions - Complete the following three tasks relating to Elmore & Co.'s accounting process at year-end 2022: Prepare an unadjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order, <0.5> (a) (b) Prepare the adjusting journal entries needed at December 31, 2022. <|3.5> Prepare an adjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order. <1.0> (c) Please observe the following checklist of instructions as you complete this assignment: Prepare your journal entries and trial balances using Excel. Show how you derived the amounts you present that were not given in the problem. Round all dollar amounts you present in your journal entries and trial balances to the nearest dollar. Elmore & Co. is an engineering firm with offices in several cities in the Mid-Atlantic region. Elmore's fiscat year-end is December 31, and it prepares financial statements just once a year, at year-end. For bookkeeping purposes, Elmore has adopted a policy to record payments and collections in advance into asset and liability accounts, respectively. The company's unadjusted trial balance at December 31, 2022 is shown below. All accounts have normal-side balances. Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Advertising Expense Allowance for Doubtful Accounts $ 372,590 729,340 497,175 213,860 19,410 950,601 171,000 46,720 891,480 116oembe Cash Common Stock ($2 par) Dividends Declared Equipment Insurance Expense Interest Expense Land 318.670 Maintenance Expense Notes Payable Prepaid Rent Rent Expense Retained Earnings. Salaries and Wages Expense 51,230 347.510 58,740 926,000 289,624 403,920 839,490 942,380 2,371,650 16,910 243.130 179,460 Service Revenue Supplies Expense Unearned Service Revenue Utilities Expense Additional information available at year-end is as follows: Elmore performed $65,370 of engineering services for several clients in December 2022 that it has not yet billed, recorded or collected. 1. Elmore operates 5 days a week, Mondays through Fridays. Employees are paid each Tuesday, for hours worked through the previous Friday. On Tuesday, December 27, 2022, the last payday in 2022, Elmore paid its employees for hours worked during the week of December 19-23. The company gave Monday, December 26 as a paid holiday. The employees then worked their regular schedule through the end of the year. Elmore's payroll averages $3,590 per day. 2. On November 1, 2022, Elmore purchased a 15-month insurance policy for $147,630 and paid the full cost of the policy in advance. The policy provides coverage through January 31, 2024. Note -Contrary to the company's normal practice, Elmore's bookkeeper recorded the prepayment into the Insurance Expense account. Give the adjusting entry needed when a company uses the expense approach to record a payment in advance. 4. The Notes Payable balance relates to a bank loan taken in 2021 that is payable in full on August 31, 2026. The loan agreement specifies that Elmore pay interest annually on August 31 at the rate of 6.80% per vear, Elmore's bookkeeper made the proper entry for the first interest payment, on August 31, 2022. (Hint - Think about the entry Elmore made on August 31, 2022.) 5. Elmore purchased its equipment in 2014. The company depreciates its fixed assets according to the straight-line method. For the equipment, it uses estimates of 12 years for the useful life and $96,000 for the salvage value. 6. In October 2022, Elmore received $243,130 from a client as payment in advance on a new engineering services engagement. As of December 31, 2022, Elmore had completed $194,760 of these services. 7. Elmore estimates that 7.05% of the 2022 year-end accounts receivable balance will not be collected. 8. On January 20, 2023, Elmore received bills for December 2022 utifities totaling S18,290. The company paid all of these bills in late January 2023. On July 1, 2022, Elmore signed an 8-month lease to gain short-term access to additional building space. On that same date. Elmore prepaid the full 8-month rental charge totaling $289,624. The prepayment covers the period July 2022 through February 2023. 9. The company's income tax rate for the year is 30%. (Hint - The income tax rate is applied to the company's income after all revenues and expenses have been considered except for the income tax charge.) 10. - Instructions - Complete the following three tasks relating to Elmore & Co.'s accounting process at year-end 2022: Prepare an unadjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order, <0.5> (a) (b) Prepare the adjusting journal entries needed at December 31, 2022. <|3.5> Prepare an adjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order. <1.0> (c) Please observe the following checklist of instructions as you complete this assignment: Prepare your journal entries and trial balances using Excel. Show how you derived the amounts you present that were not given in the problem. Round all dollar amounts you present in your journal entries and trial balances to the nearest dollar. Elmore & Co. is an engineering firm with offices in several cities in the Mid-Atlantic region. Elmore's fiscat year-end is December 31, and it prepares financial statements just once a year, at year-end. For bookkeeping purposes, Elmore has adopted a policy to record payments and collections in advance into asset and liability accounts, respectively. The company's unadjusted trial balance at December 31, 2022 is shown below. All accounts have normal-side balances. Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Advertising Expense Allowance for Doubtful Accounts $ 372,590 729,340 497,175 213,860 19,410 950,601 171,000 46,720 891,480 116oembe Cash Common Stock ($2 par) Dividends Declared Equipment Insurance Expense Interest Expense Land 318.670 Maintenance Expense Notes Payable Prepaid Rent Rent Expense Retained Earnings. Salaries and Wages Expense 51,230 347.510 58,740 926,000 289,624 403,920 839,490 942,380 2,371,650 16,910 243.130 179,460 Service Revenue Supplies Expense Unearned Service Revenue Utilities Expense Additional information available at year-end is as follows: Elmore performed $65,370 of engineering services for several clients in December 2022 that it has not yet billed, recorded or collected. 1. Elmore operates 5 days a week, Mondays through Fridays. Employees are paid each Tuesday, for hours worked through the previous Friday. On Tuesday, December 27, 2022, the last payday in 2022, Elmore paid its employees for hours worked during the week of December 19-23. The company gave Monday, December 26 as a paid holiday. The employees then worked their regular schedule through the end of the year. Elmore's payroll averages $3,590 per day. 2. On November 1, 2022, Elmore purchased a 15-month insurance policy for $147,630 and paid the full cost of the policy in advance. The policy provides coverage through January 31, 2024. Note -Contrary to the company's normal practice, Elmore's bookkeeper recorded the prepayment into the Insurance Expense account. Give the adjusting entry needed when a company uses the expense approach to record a payment in advance. 4. The Notes Payable balance relates to a bank loan taken in 2021 that is payable in full on August 31, 2026. The loan agreement specifies that Elmore pay interest annually on August 31 at the rate of 6.80% per vear, Elmore's bookkeeper made the proper entry for the first interest payment, on August 31, 2022. (Hint - Think about the entry Elmore made on August 31, 2022.) 5. Elmore purchased its equipment in 2014. The company depreciates its fixed assets according to the straight-line method. For the equipment, it uses estimates of 12 years for the useful life and $96,000 for the salvage value. 6. In October 2022, Elmore received $243,130 from a client as payment in advance on a new engineering services engagement. As of December 31, 2022, Elmore had completed $194,760 of these services. 7. Elmore estimates that 7.05% of the 2022 year-end accounts receivable balance will not be collected. 8. On January 20, 2023, Elmore received bills for December 2022 utifities totaling S18,290. The company paid all of these bills in late January 2023. On July 1, 2022, Elmore signed an 8-month lease to gain short-term access to additional building space. On that same date. Elmore prepaid the full 8-month rental charge totaling $289,624. The prepayment covers the period July 2022 through February 2023. 9. The company's income tax rate for the year is 30%. (Hint - The income tax rate is applied to the company's income after all revenues and expenses have been considered except for the income tax charge.) 10. - Instructions - Complete the following three tasks relating to Elmore & Co.'s accounting process at year-end 2022: Prepare an unadjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order, <0.5> (a) (b) Prepare the adjusting journal entries needed at December 31, 2022. <|3.5> Prepare an adjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order. <1.0> (c) Please observe the following checklist of instructions as you complete this assignment: Prepare your journal entries and trial balances using Excel. Show how you derived the amounts you present that were not given in the problem. Round all dollar amounts you present in your journal entries and trial balances to the nearest dollar. Elmore & Co. is an engineering firm with offices in several cities in the Mid-Atlantic region. Elmore's fiscat year-end is December 31, and it prepares financial statements just once a year, at year-end. For bookkeeping purposes, Elmore has adopted a policy to record payments and collections in advance into asset and liability accounts, respectively. The company's unadjusted trial balance at December 31, 2022 is shown below. All accounts have normal-side balances. Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Advertising Expense Allowance for Doubtful Accounts $ 372,590 729,340 497,175 213,860 19,410 950,601 171,000 46,720 891,480 116oembe Cash Common Stock ($2 par) Dividends Declared Equipment Insurance Expense Interest Expense Land 318.670 Maintenance Expense Notes Payable Prepaid Rent Rent Expense Retained Earnings. Salaries and Wages Expense 51,230 347.510 58,740 926,000 289,624 403,920 839,490 942,380 2,371,650 16,910 243.130 179,460 Service Revenue Supplies Expense Unearned Service Revenue Utilities Expense Additional information available at year-end is as follows: Elmore performed $65,370 of engineering services for several clients in December 2022 that it has not yet billed, recorded or collected. 1. Elmore operates 5 days a week, Mondays through Fridays. Employees are paid each Tuesday, for hours worked through the previous Friday. On Tuesday, December 27, 2022, the last payday in 2022, Elmore paid its employees for hours worked during the week of December 19-23. The company gave Monday, December 26 as a paid holiday. The employees then worked their regular schedule through the end of the year. Elmore's payroll averages $3,590 per day. 2. On November 1, 2022, Elmore purchased a 15-month insurance policy for $147,630 and paid the full cost of the policy in advance. The policy provides coverage through January 31, 2024. Note -Contrary to the company's normal practice, Elmore's bookkeeper recorded the prepayment into the Insurance Expense account. Give the adjusting entry needed when a company uses the expense approach to record a payment in advance. 4. The Notes Payable balance relates to a bank loan taken in 2021 that is payable in full on August 31, 2026. The loan agreement specifies that Elmore pay interest annually on August 31 at the rate of 6.80% per vear, Elmore's bookkeeper made the proper entry for the first interest payment, on August 31, 2022. (Hint - Think about the entry Elmore made on August 31, 2022.) 5. Elmore purchased its equipment in 2014. The company depreciates its fixed assets according to the straight-line method. For the equipment, it uses estimates of 12 years for the useful life and $96,000 for the salvage value. 6. In October 2022, Elmore received $243,130 from a client as payment in advance on a new engineering services engagement. As of December 31, 2022, Elmore had completed $194,760 of these services. 7. Elmore estimates that 7.05% of the 2022 year-end accounts receivable balance will not be collected. 8. On January 20, 2023, Elmore received bills for December 2022 utifities totaling S18,290. The company paid all of these bills in late January 2023. On July 1, 2022, Elmore signed an 8-month lease to gain short-term access to additional building space. On that same date. Elmore prepaid the full 8-month rental charge totaling $289,624. The prepayment covers the period July 2022 through February 2023. 9. The company's income tax rate for the year is 30%. (Hint - The income tax rate is applied to the company's income after all revenues and expenses have been considered except for the income tax charge.) 10. - Instructions - Complete the following three tasks relating to Elmore & Co.'s accounting process at year-end 2022: Prepare an unadjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order, <0.5> (a) (b) Prepare the adjusting journal entries needed at December 31, 2022. <|3.5> Prepare an adjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order. <1.0> (c) Please observe the following checklist of instructions as you complete this assignment: Prepare your journal entries and trial balances using Excel. Show how you derived the amounts you present that were not given in the problem. Round all dollar amounts you present in your journal entries and trial balances to the nearest dollar. Elmore & Co. is an engineering firm with offices in several cities in the Mid-Atlantic region. Elmore's fiscat year-end is December 31, and it prepares financial statements just once a year, at year-end. For bookkeeping purposes, Elmore has adopted a policy to record payments and collections in advance into asset and liability accounts, respectively. The company's unadjusted trial balance at December 31, 2022 is shown below. All accounts have normal-side balances. Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Advertising Expense Allowance for Doubtful Accounts $ 372,590 729,340 497,175 213,860 19,410 950,601 171,000 46,720 891,480 116oembe Cash Common Stock ($2 par) Dividends Declared Equipment Insurance Expense Interest Expense Land 318.670 Maintenance Expense Notes Payable Prepaid Rent Rent Expense Retained Earnings. Salaries and Wages Expense 51,230 347.510 58,740 926,000 289,624 403,920 839,490 942,380 2,371,650 16,910 243.130 179,460 Service Revenue Supplies Expense Unearned Service Revenue Utilities Expense Additional information available at year-end is as follows: Elmore performed $65,370 of engineering services for several clients in December 2022 that it has not yet billed, recorded or collected. 1. Elmore operates 5 days a week, Mondays through Fridays. Employees are paid each Tuesday, for hours worked through the previous Friday. On Tuesday, December 27, 2022, the last payday in 2022, Elmore paid its employees for hours worked during the week of December 19-23. The company gave Monday, December 26 as a paid holiday. The employees then worked their regular schedule through the end of the year. Elmore's payroll averages $3,590 per day. 2. On November 1, 2022, Elmore purchased a 15-month insurance policy for $147,630 and paid the full cost of the policy in advance. The policy provides coverage through January 31, 2024. Note -Contrary to the company's normal practice, Elmore's bookkeeper recorded the prepayment into the Insurance Expense account. Give the adjusting entry needed when a company uses the expense approach to record a payment in advance. 4. The Notes Payable balance relates to a bank loan taken in 2021 that is payable in full on August 31, 2026. The loan agreement specifies that Elmore pay interest annually on August 31 at the rate of 6.80% per vear, Elmore's bookkeeper made the proper entry for the first interest payment, on August 31, 2022. (Hint - Think about the entry Elmore made on August 31, 2022.) 5. Elmore purchased its equipment in 2014. The company depreciates its fixed assets according to the straight-line method. For the equipment, it uses estimates of 12 years for the useful life and $96,000 for the salvage value. 6. In October 2022, Elmore received $243,130 from a client as payment in advance on a new engineering services engagement. As of December 31, 2022, Elmore had completed $194,760 of these services. 7. Elmore estimates that 7.05% of the 2022 year-end accounts receivable balance will not be collected. 8. On January 20, 2023, Elmore received bills for December 2022 utifities totaling S18,290. The company paid all of these bills in late January 2023. On July 1, 2022, Elmore signed an 8-month lease to gain short-term access to additional building space. On that same date. Elmore prepaid the full 8-month rental charge totaling $289,624. The prepayment covers the period July 2022 through February 2023. 9. The company's income tax rate for the year is 30%. (Hint - The income tax rate is applied to the company's income after all revenues and expenses have been considered except for the income tax charge.) 10. - Instructions - Complete the following three tasks relating to Elmore & Co.'s accounting process at year-end 2022: Prepare an unadjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order, <0.5> (a) (b) Prepare the adjusting journal entries needed at December 31, 2022. <|3.5> Prepare an adjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order. <1.0> (c) Please observe the following checklist of instructions as you complete this assignment: Prepare your journal entries and trial balances using Excel. Show how you derived the amounts you present that were not given in the problem. Round all dollar amounts you present in your journal entries and trial balances to the nearest dollar. Elmore & Co. is an engineering firm with offices in several cities in the Mid-Atlantic region. Elmore's fiscat year-end is December 31, and it prepares financial statements just once a year, at year-end. For bookkeeping purposes, Elmore has adopted a policy to record payments and collections in advance into asset and liability accounts, respectively. The company's unadjusted trial balance at December 31, 2022 is shown below. All accounts have normal-side balances. Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Advertising Expense Allowance for Doubtful Accounts $ 372,590 729,340 497,175 213,860 19,410 950,601 171,000 46,720 891,480 116oembe Cash Common Stock ($2 par) Dividends Declared Equipment Insurance Expense Interest Expense Land 318.670 Maintenance Expense Notes Payable Prepaid Rent Rent Expense Retained Earnings. Salaries and Wages Expense 51,230 347.510 58,740 926,000 289,624 403,920 839,490 942,380 2,371,650 16,910 243.130 179,460 Service Revenue Supplies Expense Unearned Service Revenue Utilities Expense Additional information available at year-end is as follows: Elmore performed $65,370 of engineering services for several clients in December 2022 that it has not yet billed, recorded or collected. 1. Elmore operates 5 days a week, Mondays through Fridays. Employees are paid each Tuesday, for hours worked through the previous Friday. On Tuesday, December 27, 2022, the last payday in 2022, Elmore paid its employees for hours worked during the week of December 19-23. The company gave Monday, December 26 as a paid holiday. The employees then worked their regular schedule through the end of the year. Elmore's payroll averages $3,590 per day. 2. On November 1, 2022, Elmore purchased a 15-month insurance policy for $147,630 and paid the full cost of the policy in advance. The policy provides coverage through January 31, 2024. Note -Contrary to the company's normal practice, Elmore's bookkeeper recorded the prepayment into the Insurance Expense account. Give the adjusting entry needed when a company uses the expense approach to record a payment in advance. 4. The Notes Payable balance relates to a bank loan taken in 2021 that is payable in full on August 31, 2026. The loan agreement specifies that Elmore pay interest annually on August 31 at the rate of 6.80% per vear, Elmore's bookkeeper made the proper entry for the first interest payment, on August 31, 2022. (Hint - Think about the entry Elmore made on August 31, 2022.) 5. Elmore purchased its equipment in 2014. The company depreciates its fixed assets according to the straight-line method. For the equipment, it uses estimates of 12 years for the useful life and $96,000 for the salvage value. 6. In October 2022, Elmore received $243,130 from a client as payment in advance on a new engineering services engagement. As of December 31, 2022, Elmore had completed $194,760 of these services. 7. Elmore estimates that 7.05% of the 2022 year-end accounts receivable balance will not be collected. 8. On January 20, 2023, Elmore received bills for December 2022 utifities totaling S18,290. The company paid all of these bills in late January 2023. On July 1, 2022, Elmore signed an 8-month lease to gain short-term access to additional building space. On that same date. Elmore prepaid the full 8-month rental charge totaling $289,624. The prepayment covers the period July 2022 through February 2023. 9. The company's income tax rate for the year is 30%. (Hint - The income tax rate is applied to the company's income after all revenues and expenses have been considered except for the income tax charge.) 10. - Instructions - Complete the following three tasks relating to Elmore & Co.'s accounting process at year-end 2022: Prepare an unadjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order, <0.5> (a) (b) Prepare the adjusting journal entries needed at December 31, 2022. <|3.5> Prepare an adjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order. <1.0> (c) Please observe the following checklist of instructions as you complete this assignment: Prepare your journal entries and trial balances using Excel. Show how you derived the amounts you present that were not given in the problem. Round all dollar amounts you present in your journal entries and trial balances to the nearest dollar. Elmore & Co. is an engineering firm with offices in several cities in the Mid-Atlantic region. Elmore's fiscat year-end is December 31, and it prepares financial statements just once a year, at year-end. For bookkeeping purposes, Elmore has adopted a policy to record payments and collections in advance into asset and liability accounts, respectively. The company's unadjusted trial balance at December 31, 2022 is shown below. All accounts have normal-side balances. Accounts Payable Accounts Receivable Accumulated Depreciation - Equipment Advertising Expense Allowance for Doubtful Accounts $ 372,590 729,340 497,175 213,860 19,410 950,601 171,000 46,720 891,480 116oembe Cash Common Stock ($2 par) Dividends Declared Equipment Insurance Expense Interest Expense Land 318.670 Maintenance Expense Notes Payable Prepaid Rent Rent Expense Retained Earnings. Salaries and Wages Expense 51,230 347.510 58,740 926,000 289,624 403,920 839,490 942,380 2,371,650 16,910 243.130 179,460 Service Revenue Supplies Expense Unearned Service Revenue Utilities Expense Additional information available at year-end is as follows: Elmore performed $65,370 of engineering services for several clients in December 2022 that it has not yet billed, recorded or collected. 1. Elmore operates 5 days a week, Mondays through Fridays. Employees are paid each Tuesday, for hours worked through the previous Friday. On Tuesday, December 27, 2022, the last payday in 2022, Elmore paid its employees for hours worked during the week of December 19-23. The company gave Monday, December 26 as a paid holiday. The employees then worked their regular schedule through the end of the year. Elmore's payroll averages $3,590 per day. 2. On November 1, 2022, Elmore purchased a 15-month insurance policy for $147,630 and paid the full cost of the policy in advance. The policy provides coverage through January 31, 2024. Note -Contrary to the company's normal practice, Elmore's bookkeeper recorded the prepayment into the Insurance Expense account. Give the adjusting entry needed when a company uses the expense approach to record a payment in advance. 4. The Notes Payable balance relates to a bank loan taken in 2021 that is payable in full on August 31, 2026. The loan agreement specifies that Elmore pay interest annually on August 31 at the rate of 6.80% per vear, Elmore's bookkeeper made the proper entry for the first interest payment, on August 31, 2022. (Hint - Think about the entry Elmore made on August 31, 2022.) 5. Elmore purchased its equipment in 2014. The company depreciates its fixed assets according to the straight-line method. For the equipment, it uses estimates of 12 years for the useful life and $96,000 for the salvage value. 6. In October 2022, Elmore received $243,130 from a client as payment in advance on a new engineering services engagement. As of December 31, 2022, Elmore had completed $194,760 of these services. 7. Elmore estimates that 7.05% of the 2022 year-end accounts receivable balance will not be collected. 8. On January 20, 2023, Elmore received bills for December 2022 utifities totaling S18,290. The company paid all of these bills in late January 2023. On July 1, 2022, Elmore signed an 8-month lease to gain short-term access to additional building space. On that same date. Elmore prepaid the full 8-month rental charge totaling $289,624. The prepayment covers the period July 2022 through February 2023. 9. The company's income tax rate for the year is 30%. (Hint - The income tax rate is applied to the company's income after all revenues and expenses have been considered except for the income tax charge.) 10. - Instructions - Complete the following three tasks relating to Elmore & Co.'s accounting process at year-end 2022: Prepare an unadjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order, <0.5> (a) (b) Prepare the adjusting journal entries needed at December 31, 2022. <|3.5> Prepare an adjusted trial balance as of December 31, 2022. List the accounts in an appropriate trial balance order. <1.0> (c) Please observe the following checklist of instructions as you complete this assignment: Prepare your journal entries and trial balances using Excel. Show how you derived the amounts you present that were not given in the problem. Round all dollar amounts you present in your journal entries and trial balances to the nearest dollar.

Answer rating: 100% (QA)

a Unadjusted ... View the full answer