QUESTION 11 At the end of the 2021 year, the accounting staff at ABC Inc. (ABC)...

 

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QUESTION 11 At the end of the 2021 year, the accounting staff at ABC Inc. (ABC) have the following unadjusted trial balance as at December 31, 2021. ABC Inc. December 31, 2021 Trial Balance Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Other Assets Accounts Payable Uneamed Service Revenue Notes Payable (due 2026) Common Shares Retained Earnings, 03/31/2021 Service Revenue Wages Expense Rent Expense Interest Expense Total $ 27,200 64,589 4,080 4,300 925,000 32,500 $ 178,950 34,589 15,275 21,000 40,000 246,555 905,125 205,125 175,000 3,700 $1,441,494 $1,441,494 The accounting staff have identified the following items where a year end accrual entry may be required. 80 points Save Answer The accounting staff have identified the following items where a year end accrual entry may be required. 1. PDF purchased 12-month insurance on July 1, 2021. It is reported as prepaid insurance in the trial balance above. 2. A physical inventory count showed that $690 of office supplies is on hand at year end. 3. PDF's equipment depreciation was $31,980 for the 2021 year. 4. An analysis showed the unearned service revenue above had been reduced to $12,420 after additional service was provided to customers prior to the end of year. 5. Wages in the amount of $3,800 were owed to employees but were unpaid and unrecorded at year-end. 6. Six months' interest at 6% on the note was paid on August 31. Interest for the period from September 1 to December 31 has not been paid or recorded. Required 1. Prepare all year end adjusting entries for ABC on the following page, dates and explanations are not required. 2. Prepare an adjusted trial balance for ABC Inc. Add any additional accounts that may be required. 3. From the Adjusted Trial Balance that you have prepared for ABC Inc. use this information to prepare the following 3 Financial Statements. a. Please prepare a statement of earnings for ABC Inc. for the year ended December 31, 2021. b. Please prepare a statement of retained earnings for ABC Inc. at December 31, 2021. c. Please prepare a statement of financial position for ABC Inc. as at December 31, 2021 QUESTION 11 At the end of the 2021 year, the accounting staff at ABC Inc. (ABC) have the following unadjusted trial balance as at December 31, 2021. ABC Inc. December 31, 2021 Trial Balance Cash Accounts Receivable Supplies Prepaid Insurance Equipment Accumulated Depreciation Other Assets Accounts Payable Uneamed Service Revenue Notes Payable (due 2026) Common Shares Retained Earnings, 03/31/2021 Service Revenue Wages Expense Rent Expense Interest Expense Total $ 27,200 64,589 4,080 4,300 925,000 32,500 $ 178,950 34,589 15,275 21,000 40,000 246,555 905,125 205,125 175,000 3,700 $1,441,494 $1,441,494 The accounting staff have identified the following items where a year end accrual entry may be required. 80 points Save Answer The accounting staff have identified the following items where a year end accrual entry may be required. 1. PDF purchased 12-month insurance on July 1, 2021. It is reported as prepaid insurance in the trial balance above. 2. A physical inventory count showed that $690 of office supplies is on hand at year end. 3. PDF's equipment depreciation was $31,980 for the 2021 year. 4. An analysis showed the unearned service revenue above had been reduced to $12,420 after additional service was provided to customers prior to the end of year. 5. Wages in the amount of $3,800 were owed to employees but were unpaid and unrecorded at year-end. 6. Six months' interest at 6% on the note was paid on August 31. Interest for the period from September 1 to December 31 has not been paid or recorded. Required 1. Prepare all year end adjusting entries for ABC on the following page, dates and explanations are not required. 2. Prepare an adjusted trial balance for ABC Inc. Add any additional accounts that may be required. 3. From the Adjusted Trial Balance that you have prepared for ABC Inc. use this information to prepare the following 3 Financial Statements. a. Please prepare a statement of earnings for ABC Inc. for the year ended December 31, 2021. b. Please prepare a statement of retained earnings for ABC Inc. at December 31, 2021. c. Please prepare a statement of financial position for ABC Inc. as at December 31, 2021

Answer rating: 100% (QA)

Adjusting Entries a Prepaid Insurance Debit Insurance Expense Credit Prepaid Insurance b Office Supplies ... View the full answer