On October 1, 2017, Darcy Zaylo organized a computer service company called Darcy Systems. Darcy is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On October 1, 2017, Darcy Zaylo organized a computer service company called Darcy Systems. Darcy is organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Zaylo has adopted the calendar year for reporting, and expects to prepare the company's first set of financial statements as of Dec 31, 2-17 The transactions for the first two months have been recorded and posted. You will only be recording work for December, induding the adjusting entries and closing. The beginning balances in the accounts represent the first two months transactions. Required 1. Prepare journal entries to record each of the following transactions for Darcy Systems. Post the entries to the accounts in the ledger. Dec. 3 Paid $2,700 to the Seashelt Mall for the company's share of mall advertising costs for December. 3 Paid $85 to repair the company's computer. 4 Received the balance owing from Reynolds Plumbing Co. 10 Paid Chris Douglas for nine days' work at the rate of $240 per day. 14 Notified by Reynolds Plumbing Co. that Darcy's bid of $9,000 on a proposed project was accepted. Reynolds paid an advance of $2,500. 17 Purchased $1,900 of computer supplies on credit from Morris Supplies. 18 Sent a reminder to Pelletier Food Services to pay the $3,650 originally recorded on November 8. 20 Completed a project for Abee Gravel & Sand Co. and received $4,900 cash. 24-28 Took the week off for the holidays. 31 Received $1,400 as partial payment from Pelletier Food Services. 31 Reimbursed Darcy Zaylo's business automobile expenses of 1,420 kilometres at $2.05 per kilometre. 31 Darcy Zaylo withdrew $1,800 cash from the business. 2. Prepare adjusting entries to record the following additional information collected on December 31, 2017. Post the entries to the accounts in the ledger. Dec. 31 a. The December 31 inventory of computer supplies was $545, b. Three months have passed since the annual insurance premium was paid. c. As of the end of the year, Chris Douglas has not been paid for 14 days of work at the rate of $240 per day. d. The computer equipment is expected to have a two-year life with no residual value. e. The office equipment is expected to have a five-year life with no residual value. f. Prepaid rent for three of the six months has expired. 3. Prepare an adjusted trial balance as of December 31, 2017. 4. Prepare an income statement and statement of changes in equity for the three months ended December 31, 2017. 5. Prepare a balance sheet as of December 31, 2017. 6. Record and post the appropriate closing entries. 7. Prepare a post-closing trial balance. On October 1, 2017, Darcy Zaylo organized a computer service company called Darcy Systems. Darcy is organized as a sole proprietorship and will provide consulting services, computer system installations, and custom program development. Zaylo has adopted the calendar year for reporting, and expects to prepare the company's first set of financial statements as of Dec 31, 2-17 The transactions for the first two months have been recorded and posted. You will only be recording work for December, induding the adjusting entries and closing. The beginning balances in the accounts represent the first two months transactions. Required 1. Prepare journal entries to record each of the following transactions for Darcy Systems. Post the entries to the accounts in the ledger. Dec. 3 Paid $2,700 to the Seashelt Mall for the company's share of mall advertising costs for December. 3 Paid $85 to repair the company's computer. 4 Received the balance owing from Reynolds Plumbing Co. 10 Paid Chris Douglas for nine days' work at the rate of $240 per day. 14 Notified by Reynolds Plumbing Co. that Darcy's bid of $9,000 on a proposed project was accepted. Reynolds paid an advance of $2,500. 17 Purchased $1,900 of computer supplies on credit from Morris Supplies. 18 Sent a reminder to Pelletier Food Services to pay the $3,650 originally recorded on November 8. 20 Completed a project for Abee Gravel & Sand Co. and received $4,900 cash. 24-28 Took the week off for the holidays. 31 Received $1,400 as partial payment from Pelletier Food Services. 31 Reimbursed Darcy Zaylo's business automobile expenses of 1,420 kilometres at $2.05 per kilometre. 31 Darcy Zaylo withdrew $1,800 cash from the business. 2. Prepare adjusting entries to record the following additional information collected on December 31, 2017. Post the entries to the accounts in the ledger. Dec. 31 a. The December 31 inventory of computer supplies was $545, b. Three months have passed since the annual insurance premium was paid. c. As of the end of the year, Chris Douglas has not been paid for 14 days of work at the rate of $240 per day. d. The computer equipment is expected to have a two-year life with no residual value. e. The office equipment is expected to have a five-year life with no residual value. f. Prepaid rent for three of the six months has expired. 3. Prepare an adjusted trial balance as of December 31, 2017. 4. Prepare an income statement and statement of changes in equity for the three months ended December 31, 2017. 5. Prepare a balance sheet as of December 31, 2017. 6. Record and post the appropriate closing entries. 7. Prepare a post-closing trial balance.
Expert Answer:
Related Book For
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
Posted Date:
Students also viewed these accounting questions
-
On October 1, 2020, Mary Graham organized a computer service company called Echo Systems. Echo is organized as a sole proprietorship and will provide consulting services, computer system...
-
On October 1, 2017, Darcy Zaylo organized a computer service I need this assignment.do you a solution for this assignment? Darcy Systems On October 1, 2017, Darcy Zaylo organized a computer service...
-
The following is the complete set of financial statements prepared by Oberlin Corporation: Statement of Income and Retained Earnings For the Fiscal Year Ended August 31, 2016 Balance Sheet August 31,...
-
Problem 4: The two compensator circuits (Fig. P4a) are used to improve the closed-loop system performance: 1) Derive the transfer functions to characterize the two circuits, and show that they can be...
-
Mars, Inc. manufactures M&M's, one of the most popular candy treats in the world. The milk chocolate candies come in a variety of colors including blue, brown, green, orange, red, and yellow (M&M...
-
The Henry, Isaac, and Jacobs partnership was about to enter liquidation with the following account balances: Estimated expenses of liquidation were $10,000. Henry, Isaac, and Jacobs shared profits...
-
Why is it advisable to obtain a written confession from the subject of an investigation?
-
Puget Sound Divers is a company that provides diving services such as underwater ship repairs to clients in the Puget Sound area. The companys planning budget for May appears below: Required: During...
-
Inflation Bonds (I Bonds) are safe investments issued by the U.S. Treasury to protect individual's money from loosing value due to inflation. Interest rates on I Bonds are adjusted regularly to keep...
-
On May 1, Janeka Clothing Exchange paid cash of $54,000 for computers that are expected to remain useful for three years. At the end of three years, the value of the computers is expected to be zero....
-
A gas is heated from 300 K to 400 K at a constant pressure of 1 bar. How much heat is required to complete this process?
-
In January 2020, Judd Harrison decides to sell 100 shares in the Widget Company. Since April 2019, no stock dividends had been paid by the company. On the date the stock is sold the market price is...
-
What is the taxpayer's filing status for 2019 in each of the following situations? a. Bills wife died in 2018. Bill maintained a household for his two dependent children in 2019. b. Bill is unmarried...
-
A borrower is personally liable on a real estate mortgage with an outstanding balance of $1.5 million. Borrower's basis in the property is $1 million and the property has a current fair market value...
-
For each independent situation, determine the amount, if any, that is includible in the gross income of the employee. a. The employee of a motel has the choice w of free lodging on the premises (fair...
-
Margaret is attending school full-time for the year. Her parents paid $6,000 toward her support. She earned $5,000 from a part-time job which she used toward her support. In addition, Margaret...
-
What is the difference between a Windows Authentication and a SQL Server Authentication? How does SQL Server perform authentication when a user connects from a non-trusted connection with a specified...
-
If a force of F = 50 Ib is applied to the pads at A and C, determine the smallest dimension d required for equilibrium if the spring has an unstretched length of 1 ft. B 1 ft 1 ft F k = 15016/fr 1ft...
-
Sabre Corporation, a public company, has the following investments at November 30, 2017: 1. Investments held for trading purposes: common shares of National Bank, carrying value $25,000, fair value...
-
Elsworth Ltd. issued $1 million of 5-year, 4% bonds dated May 1, 2017, for $1,046,110 when the market interest rate was 3%. Interest is paid semi-annually on May 1 and November 1. Prepare an...
-
Mirzaei Ltd. reported the following information in its balance sheet and income statement for the year ended March 31, 2017: Calculate the net cash provided (used) by operating actitvities using the...
-
a. The yield to maturity on two 10-year maturity bonds currently is 7%. Each bond has a call price of $1,100. One bond has a coupon rate of 6%, the other 8%. Assume for simplicity that bonds are...
-
Suppose we add a new variable equal to current liabilities/current assets to Altmans equation. Would you expect this variable to receive a positive or negative coefficient?
-
On May 30, 2020, Janice Kerr is considering one of the newly issued 10-year AAA corporate bonds shown in the following exhibit. a. Suppose that market interest rates decline by 100 basis points...
Study smarter with the SolutionInn App