Hi there

I need the answers to these two sets of assignments. It's accounting

14 chapter 4 Accrual Accounting Concepts Exercises: Set B Identify point of revenue recognition. (LO 1), C E4-1B The following independent situations require professional judgment for determining when to recognize revenue from the transactions. (a) American Airlines sells you an advance-purchase airline ticket in September for your flight home at Christmas. (b) Consumer Electronics sells you a home theatre on a \"no money down, no interest, and no payments for one year\" promotional deal. (c) The Toronto Argonauts sell season tickets online to games in the Skydome. Fans can purchase the tickets at any time, although the season doesn't officially begin until April. The major league baseball season runs from April through October. (d) You borrow money in August from Household Financial Group. The loan and the interest are repayable in full in November. (e) In August, you order a sweater from Penney's using its online catalog. The sweater arrives in September, and you charge it to your Penney's credit card. You receive and pay the Penney's bill in October. Instructions Identify when revenue should be recognized in each of the above situations. Identify accounting assumptions, principles, and constraints. (LO 1), K E4-2B 1. 2. 3. 4. 5. These accounting concepts were discussed in this and previous chapters. Economic entity assumption. Expense recognition principle. Monetary unit assumption. Periodicity assumption. Historical cost principle. 6. 7. 8. 9. 10. Materiality. Full disclosure principle. Going concern assumption. Revenue recognition principle. Cost constraint. Instructions Identify by number the accounting assumption, principle, or constraint that describes each situation below. Do not use a number more than once. _____ (a) Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) _____ (b) Indicates that personal and business record-keeping should be separately maintained. _____ (c) Ensures that all relevant financial information is reported. _____ (d) Assumes that the dollar is the \"measuring stick\" used to report on financial performance. _____ (e) Requires that accounting standards be followed for all items of significant size. _____ (f ) Separates financial information into time periods for reporting purposes. _____ (g) Requires recognition of expenses in the same period as related revenues. _____ (h) Indicates that fair value changes subsequent to purchase are not recorded in the accounts. Identify the violated assumption, principle, or constraint. (LO 1), C E4-3B Here are some accounting reporting situations. (a) Hofner Company recognizes revenue at the end of the production cycle but before sale. The price of the product, as well as the amount that can be sold, is not certain. (b) Rymes Company is in its fifth year of operation and has yet to issue financial statements. (Do not use the full disclosure principle.) (c) Lau, Inc. is carrying inventory at its original cost of $100,000. Inventory has a fair value of $110,000. (d) Hartz Animel Supply Corporation reports only current assets and current liabilities on its balance sheet. Property, plant, and equipment and bonds payable are reported as current assets and current liabilities, respectively. Liquidation of the company is unlikely. (e) Kim Company has inventory on hand that cost $400,000. Kim reports inventory on its balance sheet at its current fair value of $425,000. (f ) Kris Piwek, president of Media Services Company, bought a computer for her personal use. She paid for the computer by using company funds and debited the \"Computers\" account. Exercises: Set B 15 Instructions For each situation, list the assumption, principle, or constraint that has been violated, if any. Some of these assumptions, principles, and constraints were presented in earlier chapters. List only one answer for each situation. E4-4B Your examination of the records of a company that follows the cash basis of accounting tells you that the company's reported cash basis earnings in 2014 are $23,640. If this firm had followed accrual basis accounting practices, it would have reported the following year-end balances. 2014 Accounts receivable Supplies on hand Unpaid wages owed Other unpaid amounts (LO 2, 4, 5, 9), AP 2013 $3,400 1,300 2,700 1,400 Convert earnings from cash to accrual basis. $2,800 1,460 2,400 1,100 Instructions Determine the company's net earnings on an accrual basis for 2014. Show all your calculations in an orderly fashion. E4-5B In its first year of operations, Loshe Company earned $35,000 in service revenue, $6,000 of which was on account and still outstanding at year-end. The remaining $29,000 was received in cash from customers. The company incurred operating expenses of $15,800. Of these expenses, $12,000 were paid in cash; $3,800 was still owed on account at year-end. In addition, Loshe prepaid $2,400 for insurance coverage that would not be used until the second year of operations. Determine cash-basis and accrual-basis earnings. (LO 2, 9), AP Instructions (a) Calculate the first year's net earnings under the cash basis of accounting, and calculate the first year's net earnings under the accrual basis of accounting. (b) Which basis of accounting (cash or accrual) provides more useful information for decision makers? E4-6B Hobie Company, a ski tuning and repair shop, opened in November 2013. The company carefully kept track of all its cash receipts and cash payments. The following information is available at the end of the ski season, April 30, 2014. Cash Receipts Issue of common shares Payment for repair equipment Rent payments Newspaper advertising payment Utility bills payments Part-time helper's wages payments Income tax payment Cash receipts from ski and snowboard repair services Subtotals Cash balance Totals Cash Payments $20,000 $ 9,200 1,225 375 970 2,600 12,000 32,150 52,150 26,370 25,780 $52,150 $52,150 You learn that the repair equipment has an estimated useful life of 4 years. The company rents space at a cost of $175 per month on a one-year lease. The lease contract requires payment of the first and last months' rent in advance, which was done. The part-time helper is owed $420 at April 30, 2014, for unpaid wages. At April 30, 2014, customers owe Hobie Company $420 for services they have received but have not yet paid for. Instructions (a) Prepare an accrual-basis income statement for the 6 months ended April 30, 2014. (b) Prepare the April 30, 2014, classified balance sheet. Convert earnings from cash to accrual basis; prepare accrual-based financial statements. (LO 2, 4, 5, 9), AP 16 chapter 4 Accrual Accounting Concepts Identify differences between cash and accrual accounting. (LO 2, 3, 9), C E4-7B ViKid, a maker of electronic games for kids, has just completed its first year of operations. The company's sales growth was explosive. To encourage large national stores to carry its products, ViKid offered 180-day financingmeaning its largest customers do not pay for nearly 6 months. Because ViKid is a new company, its components suppliers insist on being paid cash on delivery. Also, it had to pay up front for 2 years of insurance. At the end of the year, ViKid owed employees for one full month of salaries, but due to a cash shortfall, it promised to pay them the first week of next year. Instructions (a) Explain how cash and accrual accounting would differ for each of the events listed above and describe the proper accrual accounting. (b) Assume that at the end of the year ViKid reported a favorable net income, yet the company's management is concerned because the company is very short of cash. Explain how ViKid could have positive net income and yet run out of cash. Identify types of adjustments and accounts before adjustment. (LO 3, 4, 5), AN E4-8B Deng Company accumulates the following adjustment data at December 31. (a) Services performed but unbilled totals $1,000. (b) Store supplies of $160 are on hand. Supplies account shows $2,000 balance. (c) Utility expenses of $275 are unpaid. (d) Services performed of $490 collected in advance. (e) Salaries of $620 are unpaid. (f) Prepaid insurance totaling $400 has expired. Instructions For each item, indicate (1) the type of adjustment (prepaid expense, unearned revenue, accrued revenue, or accrued expense) and (2) the status of the accounts before adjustment (overstated or understated). Prepare adjusting entries from selected account data. E4-9B The ledger of Mary's Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared. (LO 4, 5), AP Debits Prepaid Insurance Supplies Equipment Accumulated DepreciationEquipment Notes Payable Unearned Rent Revenue Rent Revenue Interest Expense Salaries and Wages Expense Credits $ 3,600 3,000 25,000 $ 8,400 20,000 12,400 60,000 0 14,000 An analysis of the accounts shows the following. 1. 2. 3. 4. 5. The equipment depreciates $300 per month. One-fourth of the unearned rent revenue was earned during the quarter. Interest of $400 is accrued on the notes payable. Supplies on hand total $1,200. Insurance expires at the rate of $400 per month. Instructions Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are: Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense. Prepare adjusting entries. (LO 4, 5), AP E4-10B Jim Bryast, D.D.S., opened an incorporated dental practice on January 1, 2014. During the first month of operations the following transactions occurred: 1. Performed services for patients who had dental plan insurance. At January 31, $1,000 of such services was completed but not yet billed to the insurance companies. 2. Utility expenses incurred but not paid prior to January 31 totaled $950. 3. Purchased dental equipment on January 1 for $80,000, paying $20,000 in cash and signing a $60,000, 3-year note payable (Interest is paid each December 31). The equipment depreciates $400 per month. Interest is $500 per month. 4. Purchased a 1-year malpractice insurance policy on January 1 for $18,000. 5. Purchased $1,750 of dental supplies (recorded as increase to Supplies). On January 31 determined that $550 of supplies were on hand. Exercises: Set B Instructions Prepare the adjusting entries on January 31. Account titles are: Accumulated Depreciation Equipment, Depreciation Expense, Service Revenue, Accounts Receivable, Insurance Expense, Interest Expense, Interest Payable, Prepaid Insurance, Supplies, Supplies Expense, Utilities Expense, and Accounts Payable. E4-11B The unadjusted trial balance for The Sierra Corp. is shown in Illustration 4-4 (page 168). In lieu of the adjusting entries shown in the text at October 31, assume the following adjustment data. Prepare adjusting entries. (LO 4, 5), AP 1. 2. 3. 4. Supplies on hand at October 31 total $800. Expired insurance for the month is $80. Depreciation for the month is $100. As of October 31, services worth $800 related to the previously recorded unearned revenue had been performed. 5. Services performed but unbilled (and no receivable has been recorded) at October 31 are $400. 6. Interest expense accrued at October 31 is $35. 7. Accrued salaries at October 31 are $2,300. Instructions Prepare the adjusting entries for the items above. E4-12B The income statement of Biscan Co. for the month of July shows net income of $1,500 based on Service Revenue $5,500; Salaries and Wages Expense $2,100; Supplies Expense $900, and Utilities Expense $500. In reviewing the statement, you discover the following: 1. 2. 3. 4. 5. Prepare a correct income statement. (LO 1, 4, 5, 6), AP Insurance expired during July of $350 was omitted. Supplies expense includes $300 of supplies that are still on hand at July 31. Depreciation on equipment of $150 was omitted. Accrued but unpaid wages at July 31 of $260 were not included. Services performed but unrecorded totaled $600. Instructions Prepare a correct income statement for July 2014. E4-13B This is a partial adjusted trial balance of Kang Company. Analyze adjusted data. (LO 1, 4, 5, 6), AN KANG COMPANY Adjusted Trial Balance January 31, 2014 Debit Supplies Prepaid Insurance Salaries and Wages Payable Unearned Service Revenue Supplies Expense Insurance Expense Salaries and Wages Expense Service Revenue Credit $ 700 1,560 $1,060 750 950 520 1,600 3,000 Instructions Answer these questions, assuming the year begins January 1. (a) If the amount in Supplies Expense is the January 31 adjusting entry, and $300 of supplies was purchased in January, what was the balance in Supplies on January 1? (b) If the amount in Insurance Expense is the January 31 adjusting entry, and the original insurance premium was for 1 year, what was the total premium and when was the policy purchased? (c) If $2,500 of salaries was paid in January, what was the balance in Salaries and Wages Payable at December 31, 2013? (d) If $1,800 was received in January for services performed in January, what was the balance in Unearned Service Revenue at December 31, 2013? 17 18 chapter 4 Accrual Accounting Concepts Prepare closing entries. (LO 7), AP Journalize basic transactions and adjusting entries. E4-14B A partial adjusted trial balance for Kang Company is given in E4-13B. Instructions Prepare the closing entries at January 31, 2014. E4-15B (LO 4, 5, 6), AN Selected accounts of Slais Company are shown here. Supplies Expense July 31 Salaries and Wages Payable 750 July 31 Accounts Receivable Salaries and Wages Expense July 15 31 July 31 2,000 1,000 500 Unearned Service Revenue Service Revenue July 14 31 31 1,000 3,800 900 500 July 31 900 July 1 20 Bal. 1,500 600 Supplies July 1 10 Bal. 1,100 300 July 31 750 Instructions After analyzing the accounts, journalize (a) the July transactions and (b) the adjusting entries that were made on July 31. (Hint: July transactions were for cash.) Prepare adjusting entries from analysis of trial balance. E4-16B The trial balances shown below are before and after adjustment for Jack Company at the end of its fiscal year. (LO 4, 5, 6), AP JACK COMPANY Trial Balance August 31, 2014 Before Adjustment Dr. Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated DepreciationEquipment Accounts Payable Salaries and Wages Payable Unearned Rent Revenue Common Stock Retained Earnings Dividends Service Revenue Rent Revenue Salaries and Wages Expense Supplies Expense Rent Expense Insurance Expense Depreciation Expense Cr. $10,900 8,800 2,500 4,000 16,000 After Adjustment Dr. $10,900 10,100 500 2,500 16,000 $ 3,600 5,800 0 1,800 10,000 5,500 2,800 $ 4,500 5,800 1,100 800 10,000 5,500 2,800 34,000 12,100 17,000 0 10,800 0 0 $72,800 Cr. 35,300 13,100 18,100 2,000 10,800 1,500 900 $72,800 $76,100 $76,100 Exercises: Set B 19 Instructions Prepare the adjusting entries that were made. E4-17B The adjusted trial balance for Jack Company is given in E4-16B. Instructions Prepare the income and retained earnings statements for the year and the classified balance sheet at August 31. E4-18B The adjusted trial balance for Jack Company is given in E4-16B. Instructions Prepare the closing entries for the temporary accounts at August 31. Prepare financial statements from adjusted trial balance. (LO 6), AP Prepare closing entries. (LO 7), AP Problems: Set C 13 Problems: Set C P4-1C The following data are taken from the comparative balance sheets of Glenview Club, which prepares its financial statements using the accrual basis of accounting. December 31 2014 2013 Accounts receivable for member fees Unearned service revenue $12,000 17,000 Record transactions on accrual basis; convert revenue to cash receipts. $18,000 11,000 (LO 2, 4, 9), AP Fees are billed to members based upon their use of the club's facilities. Unearned service revenues arise from the sale of gift certificates, which members can apply to their future use of club facilities. The 2014 income statement for the club showed that service revenue of $172,000 was recognized during the year. Instructions (Hint: You will find it helpful to use T accounts to analyze these data.) (a) Prepare journal entries for each of the following events that took place during 2014. 1. Fees receivable from 2013 were all collected during 2014. 2. Gift certificates outstanding at the end of 2013 were all redeemed during 2014. 3. An additional $40,000 worth of gift certificates were sold during 2014; a portion of these were used by the recipients during the year; the remainder were still outstanding at the end of 2014. 4. Fees for 2014 were billed to members. 5. Fees receivable for 2014 (i.e., those billed in item (4) above) were partially collected. (b) Determine the amount of cash received by the club with respect to fees during 2014. P4-2C Pamela Quinn started her own consulting firm, Quinn Consulting, on May 1, 2014. The trial balance at May 31 is as shown below. QUINN CONSULTING Trial Balance May 31, 2014 Debit Cash Accounts Receivable Prepaid Insurance Supplies Equipment Accounts Payable Unearned Service Revenue Common Stock Service Revenue Salaries and Wages Expense Rent Expense Credit $ 3,500 4,000 19,100 7,500 4,000 1,500 $34,100 In addition to those accounts listed on the trial balance, the chart of accounts for Quinn Consulting also contains the following accounts: Accumulated DepreciationEquipment, Salaries and Wages Payable, Depreciation Expense, Insurance Expense, Utilities Expense, and Supplies Expense. Other data: 1. $750 of supplies have been used during the month. 2. Utility costs incurred but not paid are $260. 3. The insurance policy is for 2 years. 4. $1,500 of the balance in the Unearned Service Revenue account remains unearned at the end of the month. 5. Assume May 31 is a Thursday and employees are paid on Fridays. Quinn Consulting has two employees that are paid $600 each for a 5-day work week. $184,000 Prepare adjusting entries, post to ledger accounts, and prepare an adjusted trial balance. (LO 4, 5, 6), AP $ 7,500 3,000 3,600 2,500 12,000 $34,100 (b) Cash received 14 chapter 4 Accrual Accounting Concepts 6. The equipment has a 5-year life with no salvage value and is being depreciated at $200 per month for 60 months. 7. Invoices representing $1,980 of services performed during the month have not been recorded as of May 31. (c) Tot. trial balance $37,500 Prepare adjusting entries, adjusted trial balance, and financial statements. Instructions (a) Prepare the adjusting entries for the month of May. (b) Post the adjusting entries to the ledger accounts. Enter the totals from the trial balance as beginning account balances. Use T accounts. (c) Prepare an adjusted trial balance at May 31, 2014. P4-3C Maquoketa Valley Resort opened for business on June 1 with eight air-conditioned units. Its trial balance before adjustment on August 31 is presented here. (LO 4, 5, 6, 7), AP MAQUOKETA VALLEY RESORT Trial Balance August 31, 2014 Debit Cash Prepaid Insurance Supplies Land Buildings Equipment Accounts Payable Unearned Rent Revenue Mortgage Payable Common Stock Dividends Rent Revenue Salaries and Wages Expense Utilities Expense Maintenance and Repairs Expense Credit $ 24,600 5,400 4,300 40,000 132,000 36,000 $ 6,500 6,800 120,000 100,000 5,000 80,000 53,000 9,400 3,600 $313,300 $313,300 Other data: 1. 2. 3. 4. 5. 6. 7. (c) Tot. adj. trial balance (d) Net income $319,050 $11,500 Prepare adjusting entries and financial statements; identify accounts to be closed. (LO 4, 5, 6, 7), AP Insurance expires at the rate of $450 per month. A count of supplies on August 31 shows $700 of supplies on hand. Annual depreciation is $6,600 on buildings and $4,000 on equipment. Unearned rent of $5,000 was earned prior to August 31. Salaries of $600 were unpaid at August 31. Rentals of $1,600 were due from tenants at August 31. (Use Accounts Receivable.) The mortgage interest rate is 9% per year. (The mortgage was taken out August 1.) Instructions (a) Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31. (b) Prepare a ledger using T accounts. Enter the trial balance amounts and post the adjusting entries. (c) Prepare an adjusted trial balance on August 31. (d) Prepare an income statement and a retained earnings statement for the 3 months ended August 31 and a classified balance sheet as of August 31. (e) Identify which accounts should be closed on August 31. P4-4C Vedula Advertising Agency was founded by Murali Vedula in January 2009. Presented here are both the adjusted and unadjusted trial balances as of December 31, 2014. 15 Problems: Set C VEDULA ADVERTISING AGENCY Trial Balance December 31, 2014 Unadjusted Dr. Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Equipment Notes Payable Accounts Payable Interest Payable Adjusted Cr. $ 11,000 16,000 9,400 3,350 60,000 Dr. Cr. $ 11,000 19,500 6,500 1,790 60,000 $ 25,000 8,000 2,000 0 $ 30,000 8,000 2,000 560 Unadjusted Dr. Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings Dividends Service Revenue Salaries and Wages Expense Insurance Expense Interest Expense Depreciation Expense Supplies Expense Rent Expense Adjusted Cr. Dr. 5,000 0 20,000 5,500 3,100 820 20,000 5,500 10,000 10,000 57,600 63,000 9,000 9,820 1,560 560 5,000 2,900 4,350 4,350 $123,100 Cr. $123,100 $132,980 $132,980 Instructions (a) Journalize the annual adjusting entries that were made. (b) Prepare an income statement and a retained earnings statement for the year ended December 31, and a classified balance sheet at December 31. (c) Identify which accounts should be closed on December 31. (d) If the note has been outstanding 10 months, what is the annual interest rate on that note? (e) If the company paid $10,500 in salaries in 2014, what was the balance in Salaries and Wages Payable on December 31, 2013? P4-5C A review of the ledger of Felipe Company at December 31, 2014, produces the following data pertaining to the preparation of annual adjusting entries. 1. Salaries and Wages Payable $0: There are eight salaried employees. Salaries are paid every Friday for the current week. Six employees receive a salary of $800 each per week, and two employees earn $600 each per week. Assume December 31 is a Tuesday. Employees do not work weekends. All employees worked the last 2 days of December. 2. Unearned Rent Revenue $300,000: The company began subleasing office space in its new building on November 1. Each tenant is required to make a $5,000 security deposit that is not refundable until occupancy is terminated. At December 31 the company had the following rental contracts that are paid in full for the entire term of the lease. Date Term (in months) Monthly Rent Number of Leases Nov. 1 Dec. 1 6 6 $4,000 7,500 5 4 (b) Net income Tot. assets $38,810 $68,790 Prepare adjusting entries. (LO 4, 5), AP 16 chapter 4 Accrual Accounting Concepts 3. Prepaid Insurance $20,600: This company has separate insurance policies on its buildings and its motor vehicles. Policy B4564 on the building was purchased on January 1, 2013, for $14,400. The policy has a term of 3 years. Policy A2958 on the vehicles was purchased on July 1, 2014, for $11,000. This policy has a term of 2 years. 4. Notes Payable $80,000: This balance consists of a note for 1 year at an annual interest rate of 8%, dated April 1, 2014. Instructions Prepare the adjusting entries at December 31, 2014. Show all computations. Prepare adjusting entries and a corrected income statement. (LO 4, 5), AN P4-6C The Fly Right Travel Agency was organized on January 1, 2012, by Joe Kirkpatrick. Joe is a good manager but a poor accountant. From the trial balance prepared by a parttime bookkeeper, Joe prepared the following income statement for the quarter that ended March 31, 2014. FLY RIGHT TRAVEL AGENCY Income Statement For the Quarter Ended March 31, 2014 Revenues Service revenue Operating expenses Advertising expense Depreciation expense Income tax expense Salaries and wages expense Utilities expense $50,000 $ 2,600 400 1,500 11,000 400 Net income 15,900 $34,100 Joe knew that something was wrong with the statement because net income had never exceeded $8,000 in any one quarter. Knowing that you are an experienced accountant, he asks you to review the income statement and other data. You first look at the trial balance. In addition to the account balances reported above in the income statement, the trial balance contains the following additional selected balances at March 31, 2014. Supplies Prepaid insurance Notes payable $ 2,900 3,360 12,000 You then make inquiries and discover the following: 1. 2. 3. 4. Service revenue includes advance payments for cruises, $20,000. There were $800 of supplies on hand at March 31. Prepaid insurance resulted from the payment of a one-year policy on January 1, 2014. The mail on April 1, 2014, brought the utility bill for the month of March's heat, light, and power, $210. 5. There are two employees who receive salaries of $80 each per day. At March 31, four days' salaries have been incurred but not paid. 6. The note payable is a 6-month, 7% note dated January 1, 2014. (b) Net income $10,100 Journalize transactions and follow through accounting cycle to preparation of financial statements. (LO 4, 5, 6), AP Instructions (a) Prepare any adjusting journal entries required at March 31, 2014. (b) Prepare a correct income statement for the quarter ended March 31, 2014. (c) Explain to Joe the generally accepted accounting principles that he did not recognize in preparing his income statement and their effect on his results. P4-7C On September 1, 2014, the following were the account balances of Worthington Equipment Repair. Problems: Set C Debits Cash Accounts Receivable Supplies Equipment $ 4,880 3,420 800 15,000 17 Credits Accumulated DepreciationEquipment Accounts Payable Unearned Service Revenue Salaries and Wages Payable Common Stock Retained Earnings $24,100 $ 1,600 3,100 400 700 10,000 8,300 $24,100 During September, the following summary transactions were completed. Sept. 8 10 12 15 Sept. 17 20 22 25 27 29 Paid $1,100 for salaries due employees, of which $400 is for September and $700 is for August salaries payable. Received $1,500 cash from customers in payment of account. Received $3,400 cash for services performed in September. Purchased store equipment on account $3,000. Purchased supplies on account $2,000. Paid creditors $4,500 of accounts payable due. Paid September rent $520. Paid salaries $1,200. Performed services on account and billed customers for services provided $2,040. Received $650 from customers for services to be provided in the future. Adjustment data: 1. 2. 3. 4. Supplies on hand $1,100. Accrued salaries payable $400. Depreciation $200 per month. Unearned service revenue of $280 earned. Instructions (a) Enter the September 1 balances in the ledger T accounts. (b) Journalize the September transactions. (c) Post to the ledger T accounts. Use Service Revenue, Depreciation Expense, Supplies Expense, Salaries and Wages Expense, and Rent Expense. (d) Prepare a trial balance at September 30. (e) Journalize and post adjusting entries. (f ) Prepare an adjusted trial balance. (g) Prepare an income statement and a retained earnings statement for September and a classified balance sheet at September 30. (f) Tot. adj. trial balance (g) Tot. assets P4-8C Gina Balistrieri opened Genie Cleaners on March 1, 2014. During March, the following transactions were completed. Complete all steps in accounting cycle. Mar. 1 1 3 5 14 18 20 21 28 31 31 Issued 10,000 shares of common stock for $15,000 cash. Purchased used truck for $8,000, paying $3,000 cash and the balance on account. Purchased cleaning supplies for $1,500 on account. Paid $2,400 cash on a 6-month insurance policy effective March 1. Billed customers $3,700 for cleaning services. Paid $1,500 cash on amount owed on truck and $500 on amount owed on cleaning supplies. Paid $1,750 cash for employee salaries. Collected $1,600 cash from customers billed on March 14. Billed customers $4,200 for cleaning services. Paid $350 for gas and oil used in truck during month (use Maintenance and Repairs Expense). Declared and paid a $900 cash dividend. The chart of accounts for Genie Cleaners contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated DepreciationEquipment, Accounts Payable, Salaries and Wages Payable, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Maintenance and Repairs Expense, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense. (LO 4, 5, 6, 7, 8), AP $30,590 $24,370 18 chapter 4 Accrual Accounting Concepts (f) Tot. adj. trial balance (g) Tot. assets $28,930 $22,730 Instructions (a) Journalize the March transactions. (b) Post to the ledger accounts. (Use T accounts.) (c) Prepare a trial balance at March 31. (d) Journalize the following adjustments. 1. Services performed but unbilled and uncollected at March 31 were $200. 2. Depreciation on equipment for the month was $250. 3. One-sixth of the insurance expired. 4. An inventory count shows $280 of cleaning supplies on hand at March 31. 5. Accrued but unpaid employee salaries were $1,080. (e) Post adjusting entries to the T accounts. (f ) Prepare an adjusted trial balance. (g) Prepare the income statement and a retained earnings statement for March and a classified balance sheet at March 31. (h) Journalize and post closing entries and complete the closing process. (i) Prepare a post-closing trial balance at March 31