Please complete all of the following problems using the templates provided to you on the LMS...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Please complete all of the following problems using the templates provided to you on the LMS site. Ensure that you have provided your name on each of the templates, zip the files and upload to the LMS once you have completed them. 1. Sharp Massage Co. unadjusted trial balance is as follows (16 points): Sharp Massage Co. Trial Balance December 31, 2015 Debit Cash 3,200 Prepaid insurance 480 Massage supplies 990 Massage equipment 3,860 Accum depreciation, massage equipment Building 67,500 Accum depreciation, building Land 55,000 Unearned rent Long-term notes payable Sharp, capital Sharp, withdrawals 2,700 $ $ Credit 770 2,840 600 10,000 102,560 Sharp, withdrawals 2,700 Rent earned 3,400 Fees earned 23,400 Wages expense 4,200 Utilities expense 690 Property taxes expense 600 Interest expense 4,350 TOTAL $143,570 $143,570 Use the following information to prepare any adjusting entries required: General Journal entries only. a) Examination of an insurance policy showed $240 of expired insurance. b) An inventory showed $210 of unused massage supplies on hand. c) Estimated depreciation expense on massage equipment, $350. d) Estimated depreciation expense on the building, $2,220. e) A massage therapist owes $200 for space rental payments, and this was unrecorded at the time the trial balance was prepared. f) $200 of the Unearned Rent account balance was earned by year-end. f) $200 of the Unearned Rent account balance was earned by year-end. g) The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked three days this week for which she has not been paid. h) Three months' property taxes, totaling $450, have accrued. This has not been recorded. Sara's Photography Trial Balance December 31, 2015 Debit Credit 700 1,200 200 10,000 2,000 400 5,000 2.800 12,000 50 200 150 100 4,000 $ 19,400 $ 19,400 a) Prepare the necessary closing entries at December 31st. b) What is the balance of Sara's capital account after the bookkeeper posts the closing entries? Cash Accounts receivable Office supplies Photography equipment Accumulated depreciation, photography equipment Accounts payable Sarah Vegara, capital Sarah Vegara, withdrawals Photography revenue Supplies expense Cleaning expense Repairs expense Film expense Rental expense Total $ $ 3. Z-Mart established a petty cash fund recently and the following transactions affecting the fund occurred during February (8 points): Feb 1 Established a $250 petty cash fund. Paid $55 to replenish office supplies. 5 8 Gave $30 to company controller for business lunch with customers. Paid $45 for postage. 18 20 Paid $65 C.O.D. charges on merchandise purchased for sale. 25 Paid $50 for janitorial services. 28 When sorting the receipts in order to replenish the fund, the custodian noted that there was $245 in receipts and $10 in cash. Additionally, a decision was made to reduce the fund to $200. Prepare the journal entry to reimburse the fund and to reduce its size. 4. Stiller Company uses the allowance method to account for bad debts. In the first year of operations (2014), Stiller sold $540,000 of merchandise on credit, including a $2,500 sale to Bubba Long. On December 31, 2014, it provided an addition to its allowance for doubtful accounts equal to 1.8% of its credit sales. On June 1, 2015, Stiller wrote off as uncollectible the $2,500 account of Bubba Long; and on December 25, 2015 Bubba Long unexpectedly paid his account in full. (6 points) Prepare the journal entries that Stiller Company should make: a) On December 31, 2014, to increase the allowance for doubtful accounts. b) On Jun 1, 2015, to write off the bad debt. c) On December 25, 2015, to record the unexpected collection from Bubba Long. 5. The payroll records for KenCor Industries provided the following information for the weekly pay period ended August 15th, 2014. (25 points) Employees Employee Number Daily Time Pay Rate Hospital Insurance Union Dues Earnings to End of Previous Week W T F 8 8 21.00 35.00 18.00 $43,000 8 18.00 35.00 16.00 $35,500 17.00 35.00 14.00 44,500 14.00 35.00 17.00 25,500 16.00 35.00 15.00 27,000 $ 175.00 $ 80.00 C. Meyers V. Lombardi S. Hunter P. Wood K. Niles Totals Required: 1 2 3 4 5 M T 8 8 8 7 8 8 8 6 6 8 8 8 8 8 8 60 ∞∞∞∞ 8 8 6 ∞∞∞∞∞ S S 4 4 8 8 8 5 S4 a) Complete the Payroll Register with the relevant information in the proper columns; calculate the CPP and El deductions. Calculate the income deductions at 20% of their gross pay. Employees are paid an overtime wage of 50% for all hours worked in excess of 40 hours per week. b) Prepare the General Journal entries (2 entries) to record the Payroll Register information including the employer's expenses. 6. The adjusted Trial Balance for Sara's Laundry is as follows (15 points): SARA'S LAUNDRY Adjusted Trial Balance April 30, 2015 Cash Laundry supplies Prepaid insurance Laundry equipment Accumulated amortization, laundry equipment $ 5,400 Accounts payable 325 Sara Vergara, capital 11,125 Sara Vergara, withdrawals 21,720 Laundry services revenue Salaries expense Rent expense Utilities expense Insurance expense Totals $38,570 $ 1,170 1,930 600 20,600 4,800 6,920 1,200 950 400 $38,570 Required: Use the above Adjusted Trial Balance to create Sara's Laundry's Income Statement, Statement of Changes in Owner's Equity and Balance Sheet. Please complete all of the following problems using the templates provided to you on the LMS site. Ensure that you have provided your name on each of the templates, zip the files and upload to the LMS once you have completed them. 1. Sharp Massage Co. unadjusted trial balance is as follows (16 points): Sharp Massage Co. Trial Balance December 31, 2015 Debit Cash 3,200 Prepaid insurance 480 Massage supplies 990 Massage equipment 3,860 Accum depreciation, massage equipment Building 67,500 Accum depreciation, building Land 55,000 Unearned rent Long-term notes payable Sharp, capital Sharp, withdrawals 2,700 $ $ Credit 770 2,840 600 10,000 102,560 Sharp, withdrawals 2,700 Rent earned 3,400 Fees earned 23,400 Wages expense 4,200 Utilities expense 690 Property taxes expense 600 Interest expense 4,350 TOTAL $143,570 $143,570 Use the following information to prepare any adjusting entries required: General Journal entries only. a) Examination of an insurance policy showed $240 of expired insurance. b) An inventory showed $210 of unused massage supplies on hand. c) Estimated depreciation expense on massage equipment, $350. d) Estimated depreciation expense on the building, $2,220. e) A massage therapist owes $200 for space rental payments, and this was unrecorded at the time the trial balance was prepared. f) $200 of the Unearned Rent account balance was earned by year-end. f) $200 of the Unearned Rent account balance was earned by year-end. g) The one employee, a receptionist, works a five-day workweek at $50 per day. The employee was paid last week but has worked three days this week for which she has not been paid. h) Three months' property taxes, totaling $450, have accrued. This has not been recorded. Sara's Photography Trial Balance December 31, 2015 Debit Credit 700 1,200 200 10,000 2,000 400 5,000 2.800 12,000 50 200 150 100 4,000 $ 19,400 $ 19,400 a) Prepare the necessary closing entries at December 31st. b) What is the balance of Sara's capital account after the bookkeeper posts the closing entries? Cash Accounts receivable Office supplies Photography equipment Accumulated depreciation, photography equipment Accounts payable Sarah Vegara, capital Sarah Vegara, withdrawals Photography revenue Supplies expense Cleaning expense Repairs expense Film expense Rental expense Total $ $ 3. Z-Mart established a petty cash fund recently and the following transactions affecting the fund occurred during February (8 points): Feb 1 Established a $250 petty cash fund. Paid $55 to replenish office supplies. 5 8 Gave $30 to company controller for business lunch with customers. Paid $45 for postage. 18 20 Paid $65 C.O.D. charges on merchandise purchased for sale. 25 Paid $50 for janitorial services. 28 When sorting the receipts in order to replenish the fund, the custodian noted that there was $245 in receipts and $10 in cash. Additionally, a decision was made to reduce the fund to $200. Prepare the journal entry to reimburse the fund and to reduce its size. 4. Stiller Company uses the allowance method to account for bad debts. In the first year of operations (2014), Stiller sold $540,000 of merchandise on credit, including a $2,500 sale to Bubba Long. On December 31, 2014, it provided an addition to its allowance for doubtful accounts equal to 1.8% of its credit sales. On June 1, 2015, Stiller wrote off as uncollectible the $2,500 account of Bubba Long; and on December 25, 2015 Bubba Long unexpectedly paid his account in full. (6 points) Prepare the journal entries that Stiller Company should make: a) On December 31, 2014, to increase the allowance for doubtful accounts. b) On Jun 1, 2015, to write off the bad debt. c) On December 25, 2015, to record the unexpected collection from Bubba Long. 5. The payroll records for KenCor Industries provided the following information for the weekly pay period ended August 15th, 2014. (25 points) Employees Employee Number Daily Time Pay Rate Hospital Insurance Union Dues Earnings to End of Previous Week W T F 8 8 21.00 35.00 18.00 $43,000 8 18.00 35.00 16.00 $35,500 17.00 35.00 14.00 44,500 14.00 35.00 17.00 25,500 16.00 35.00 15.00 27,000 $ 175.00 $ 80.00 C. Meyers V. Lombardi S. Hunter P. Wood K. Niles Totals Required: 1 2 3 4 5 M T 8 8 8 7 8 8 8 6 6 8 8 8 8 8 8 60 ∞∞∞∞ 8 8 6 ∞∞∞∞∞ S S 4 4 8 8 8 5 S4 a) Complete the Payroll Register with the relevant information in the proper columns; calculate the CPP and El deductions. Calculate the income deductions at 20% of their gross pay. Employees are paid an overtime wage of 50% for all hours worked in excess of 40 hours per week. b) Prepare the General Journal entries (2 entries) to record the Payroll Register information including the employer's expenses. 6. The adjusted Trial Balance for Sara's Laundry is as follows (15 points): SARA'S LAUNDRY Adjusted Trial Balance April 30, 2015 Cash Laundry supplies Prepaid insurance Laundry equipment Accumulated amortization, laundry equipment $ 5,400 Accounts payable 325 Sara Vergara, capital 11,125 Sara Vergara, withdrawals 21,720 Laundry services revenue Salaries expense Rent expense Utilities expense Insurance expense Totals $38,570 $ 1,170 1,930 600 20,600 4,800 6,920 1,200 950 400 $38,570 Required: Use the above Adjusted Trial Balance to create Sara's Laundry's Income Statement, Statement of Changes in Owner's Equity and Balance Sheet.
Expert Answer:
Answer rating: 100% (QA)
1 Sharp Massage Co unadjusted trial balance a No closing entries ... View the full answer
Related Book For
Business and Administrative Communication
ISBN: 978-0073403182
10th edition
Authors: Kitty o. locker, Donna s. kienzler
Posted Date:
Students also viewed these accounting questions
-
All of the following statements are true except one. Which statement is false? a. adjusting entries are required for a business that uses a cash basis. b. accrual accounting produces better...
-
All of the following are acronyms discussed in this chapter. What words were used to form each one and what does each term mean? (a) POS, (b) CPU, (c) OCR, (d) MICR, (e) ATM, (f) RAM, (g) ALU, (h)...
-
Attlee Ltd holds 28% of the issued shares of Nehru Ltd. Attlee Ltd acquired these shares on 1 July 2019 and on this date all the identifiable assets and liabilities of Nehru Ltd were recorded at...
-
How do external auditors help managers meet their responsibilities for internal control?
-
The figure shows reversed-phase retention data for three compounds. a. Identify whether compounds A, B, and C are weak acids or bases. For each compound, what is the pKap K a and the retention factor...
-
Sketch the expectation function for the logistic growth model (12.34) for \(\theta_{1}=1, \theta_{3}=1\), and values of \(\theta_{2}=1,4,8\), respectively. Overlay these plots on the same \(x-y\)...
-
Budgeted selling and administrative expenses for Royal Tire Co. in P7-2 for the year ended December 31, 2013, were as follows: In P7-2, Royal Tire Co.'s budgeted unit sales for the year 2013 were:...
-
Outline how you would estimate the opportunity cost of capital for a new innovative project in the biotech industry. What financial models are available to assist you and how would you implement them?
-
Situation Russell International, a publicly traded company, reacquired 500,000 shares of its common stock during July 2008 at a cost of $25 per share. The current market price of the stock was $20...
-
Many scientists have criticized the use of low-dosage antibiotics and other antimicrobial agents to enhance the growth of cattle and chickens. Why would they be against this practice? Why would...
-
Lisa Tylor, CFO of Purple Rain Co., concluded from the Baumol model that the optimal cash balance for the firm is $10 million. The annual interest rate on marketable securities is 5.8 per cent. The...
-
While charging a general admission price of HK$10 for adults most days of the week, the Hong Kong Museum of History offers free admission every Wednesday. Why do you suppose that museums often price...
-
1. You are the financial analyst for Weir Group plc, the global engineering firm. The company is considering the development of a new slurry pump in its existing products. The pump is expected to...
-
During an economic expansion, it is common for the value of property to rise. This means that the value of households wealth rises without them taking any specific action. How would you expect this...
-
In 2016, Italy, which is a highly indebted nation, sold 50-year bonds at a yield of 2.8 percent, and buyers were given access to 5 billion euros in the form of these bonds. Would you consider this a...
-
Leaders who can intentionally change their internal state of mind to positively enhance the emotions of a group would be like: A basketball coach intentionally getting a technical foul to inspire the...
-
1A. If the researcher is concerned about the number of variables, the nature of the analysis, and completion rates, then, he/she is at which stage of the sampling design process (Figure 11.1 in the...
-
What are some disadvantages of focus groups and online networks?
-
What are the reasons behind the patterns of organization for negative messages in different situations?
-
What are five kinds of nonproductive roles in teams?
-
Describe the role of a paralegal in a family law practice.
-
Define family law and identify the kinds of issues that are addressed in a family law practice.
-
Describe the characteristics of effective fee agreements, and identify the various types of fee agreements that may be used in divorce cases.
Study smarter with the SolutionInn App