KPMG was founded by 10 partners each provided 30,000 in January 1980 to provide both audit...

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KPMG was founded by 10 partners each provided 30,000 in January 1980 to provide both audit and management consultancy services. KPMG issued each shareholder 3,000 shares of $10 per share along with a share premium of $2 per share. Presented below is the trial balance as of December 31, 2021. Cash Bank Name of accounts Accounts receivable Supplies Prepaid insurance KPMG Trail Balance December 31, 2021 Rent Expense Land Building Accumulated Depreciation, Building Equipment Accumulated depreciation, Equipment Furniture Accumulated depreciation, Furniture Investment in Silicon Corporation Accounts payable 10% Notes payable 12% Mortgage payable Unearned Consultancy Revenue Interest revenue Salaries and wages expense Entertainment expense Utility expense Share capital Share premium Retained Earnings Management consultancy service revenue Audit service revenue Total Dr. 11,000 300,000 21.500 5,000 10,000 20,000 100,000 60,000 160,000 70.000 100,000 125,000 9.000 7,600 Cr. 9,000 32.000 16,000 12.500 5,000 30.000 25.000 15.000 300.000 60,000 125.000 159,000 210,600 999.100 999.100 The following additional information is available by analyzing the books of accounts KPMG 1. Supplies on hand 800 at the end of the year 2. Interest accrued on Notes payable for 1-year and on Mortgage Payable for 6-month, and are not yet recorded and paid. 3. Insurance expired during the year $8000 4. During the year Silicon corporation declared a dividend of 10% but not yet recorded 5. Salaries and wages expense accrued but not yet paid $15000. 6. Building is depreciated @2%, Equipment is depreciated at the rate of 10% and furniture is depreciated at the rate of 20% 7. Unearned consultancy revenue earned during the year 15000, but not yet adjusted Required: Prepare financial statements for KPMG for the year 2021 KPMG was founded by 10 partners each provided 30,000 in January 1980 to provide both audit and management consultancy services. KPMG issued each shareholder 3,000 shares of $10 per share along with a share premium of $2 per share. Presented below is the trial balance as of December 31, 2021. Cash Bank Name of accounts Accounts receivable Supplies Prepaid insurance KPMG Trail Balance December 31, 2021 Rent Expense Land Building Accumulated Depreciation, Building Equipment Accumulated depreciation, Equipment Furniture Accumulated depreciation, Furniture Investment in Silicon Corporation Accounts payable 10% Notes payable 12% Mortgage payable Unearned Consultancy Revenue Interest revenue Salaries and wages expense Entertainment expense Utility expense Share capital Share premium Retained Earnings Management consultancy service revenue Audit service revenue Total Dr. 11,000 300,000 21.500 5,000 10,000 20,000 100,000 60,000 160,000 70.000 100,000 125,000 9.000 7,600 Cr. 9,000 32.000 16,000 12.500 5,000 30.000 25.000 15.000 300.000 60,000 125.000 159,000 210,600 999.100 999.100 The following additional information is available by analyzing the books of accounts KPMG 1. Supplies on hand 800 at the end of the year 2. Interest accrued on Notes payable for 1-year and on Mortgage Payable for 6-month, and are not yet recorded and paid. 3. Insurance expired during the year $8000 4. During the year Silicon corporation declared a dividend of 10% but not yet recorded 5. Salaries and wages expense accrued but not yet paid $15000. 6. Building is depreciated @2%, Equipment is depreciated at the rate of 10% and furniture is depreciated at the rate of 20% 7. Unearned consultancy revenue earned during the year 15000, but not yet adjusted Required: Prepare financial statements for KPMG for the year 2021

Answer rating: 100% (QA)

Here are the financial statements for KPMG for the year ended December 31 2021 KPMG Income Statement ... View the full answer