Question: only need 20,21, e., and close withdrawls Part III - 45 points Carl Redmon decided to expand his business and begin selling accounting software, as
Part III - 45 points Carl Redmon decided to expand his business and begin selling accounting software, as well as providing consulting services. During January, Carl Redmon Consulting completed these transactions Jan 2 Completed a consulting engagement and received cash of $7,200 2 Prepaid three months office rent, S1,500, 7 Purchased software inventory on account, $3,900, plus freight in, $100 15 Withdrew $500 for personal use. 18 Sold software on account, $1,100 (cost $700) 19 Consulted with a client for a fee of $900 on account 20 Paid the secretary's salary for the month. 21 Paid on account, $2,000 24 Paid utilities, $300 28 Sold software for cash $600 (cost $400) 31 Recorded these adjusting entries a) Accrued salary expense. b) Depreciation of computer and furniture. c) Expiration of prepaid rent. d) Expiration of prepaid insurance e) Physical count of inventory, $2,800 1) Earned the remaining revenue from December 22 g) Redmon estimates that 3% of inventory sold will be returned Required 1) Prepare journal entries for the above transactions and post these entries to the ledger 2) Prepare adjusting entries on January 31 and post to the ledger 3) Prepare an adjusted trial balance, an income statement a statement of owner's equity, and a balance sheet as of/ on January 31, 2018 4) Prepare closing entries at January 31, 2018 and post to the ledger 5) Prepare a post closing trial balance on January 31, 2018 6) Write a letter to the CEO explaining the financial position of the company
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