PSA3.2 Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance. LO3, 4, 5...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
PSA3.2 Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance. LO3, 4, 5 The unadjusted trial balance at 30 June 2020 for Maxi Services Ltd is as follows. MAXI SERVICES LTD Trial balance as at 30 June 2020 No. Account name 100 Cash 104 Accounts receivable 112 Prepaid insurance 113 Supplies 130 Office equipment 131 200 213 300 310 400 500 510 515 530 Accumulated depreciation Accounts payable Service revenue received in advance Share capital Retained earnings Service revenue Salaries expense Rent expense Insurance expense Electricity expense Debit $ 54800 15000 3200 1500 30000 34000 2000 1200 4000 $145 700 Credit $ 20 000 7400 4000 60 000 7.500 46 800 $145 700 The chart of accounts for Maxi Services Ltd contains the following accounts in addition to those listed on the trial balance: 218 Electricity payable, 215 Salaries payable, 520 Depreciation expense, and 505 Supplies expense. Other data: 1. Supplies on hand at 30 June total $1000. 2. An electricity bill for $300 for June has not been recorded and will not be paid until next month. 3. The balance of the prepaid insurance account is the annual premium for insurance com- mencing 1 January 2020. 4. Services were performed during the current period in relation to $3000 of revenue received in advance. 5. Salaries of $4600 are owed at 30 June. 6. Depreciation expense for the year is $4000. 7. Invoices representing $4400 of services performed during the month have not been recorded as of 30 June 2020. Required (a) Prepare the adjusting entries from the information provided. (b) Using T accounts, enter the totals from the trial balance as beginning account balances and then post the adjusting entries to the ledger accounts. (c) Prepare an adjusted trial alance as at 30 June 2020. (d) Calculate profit or loss for the year ended 30 June 2020. (e) If the business wanted to report a higher profit, which of the adjusting entries above would be avoided? Which stakeholders would be affected by the misreported profit? I PSA3.2 Prepare adjusting entries, post to ledger accounts, and prepare adjusted trial balance. LO3, 4, 5 The unadjusted trial balance at 30 June 2020 for Maxi Services Ltd is as follows. MAXI SERVICES LTD Trial balance as at 30 June 2020 No. Account name 100 Cash 104 Accounts receivable 112 Prepaid insurance 113 Supplies 130 Office equipment 131 200 213 300 310 400 500 510 515 530 Accumulated depreciation Accounts payable Service revenue received in advance Share capital Retained earnings Service revenue Salaries expense Rent expense Insurance expense Electricity expense Debit $ 54800 15000 3200 1500 30000 34000 2000 1200 4000 $145 700 Credit $ 20 000 7400 4000 60 000 7.500 46 800 $145 700 The chart of accounts for Maxi Services Ltd contains the following accounts in addition to those listed on the trial balance: 218 Electricity payable, 215 Salaries payable, 520 Depreciation expense, and 505 Supplies expense. Other data: 1. Supplies on hand at 30 June total $1000. 2. An electricity bill for $300 for June has not been recorded and will not be paid until next month. 3. The balance of the prepaid insurance account is the annual premium for insurance com- mencing 1 January 2020. 4. Services were performed during the current period in relation to $3000 of revenue received in advance. 5. Salaries of $4600 are owed at 30 June. 6. Depreciation expense for the year is $4000. 7. Invoices representing $4400 of services performed during the month have not been recorded as of 30 June 2020. Required (a) Prepare the adjusting entries from the information provided. (b) Using T accounts, enter the totals from the trial balance as beginning account balances and then post the adjusting entries to the ledger accounts. (c) Prepare an adjusted trial alance as at 30 June 2020. (d) Calculate profit or loss for the year ended 30 June 2020. (e) If the business wanted to report a higher profit, which of the adjusting entries above would be avoided? Which stakeholders would be affected by the misreported profit? I
Expert Answer:
Answer rating: 100% (QA)
SOLUTIONS a 1 2 3 Date 2020 June 30 30 30 Account name narratio... View the full answer
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: 978-0078110931
16th Edition
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
Posted Date:
Students also viewed these accounting questions
-
The chart of accounts of Ethan Academy is shown here, followed by the transactions that took place during December of this year. Assets 111 Cash 113 Accounts Receivable 114 Supplies 115 Prepaid...
-
The chart of accounts for Adler's Delivery Service is as follows: Chart of Accounts Assets Cash 111 Accounts Receivable 112 Office Equipment 121 Delivery Trucks 122 Liabilities Accounts Payable 211...
-
The chart of accounts for Anniss Delivery Service is as follows: Chart of Accounts AssetsRevenue Cash 111Delivery Fees Earned 411 Accounts Receivable 112Expenses Office Equipment 121Delivery Trucks...
-
The pressure at the bottom of a swimming pool is evenly distributed. Suppose we look at a cast iron plate of 7272 kg lying on the ground with an area of 100 m2. What is the average pressure below...
-
Floyd wants to invest the $ 15,000 he received from his grandfathers estate. He wants to use the money to finance his education when he pursues his doctorate in five years. What amount will he have...
-
Derive the equation of motion and find the natural frequency of vibration of each of the systems shown in Figs. 2.118. k 0000 E C R x(t) No slip- 301 Cylinder, mass m FIGURE 2.118 Roller with spring...
-
Refer to the data for E5-28B. Flowever, instead of the FIFO method, assume Underwater Way uses the LIFO method. Requirements 1. Prepare a perpetual inventory record for the watches on the LIFO basis...
-
Selected accounts from the adjusted trial balance for Louise's Gourmet Shop as of March 31, 2011, the end of the current fiscal year. The merchandise inventory for Louise's Gourmet Shop was $38,200...
-
What is the correlation between X and Y in the graph below? 2 4 0 -2 4 10
-
Michelle French owns and operates Books and More, a retail book store. Selected account balances on June 1 are as follows: General Ledger Cash ............... $32,200.00 Accounts Payable ..............
-
Sony manufacturers the Walkman, a mobile tape player that provides "a new way to enjoy music in high quality anywhere at any time." Sony uses a job order costing system and allocates actual...
-
Review the New Shoes Case as well as the Quick Start Guide in the NewShoes Student Manual Download NewShoes Student Manual Download NewShoes Student Manual. Please be sure to take the New Shoes...
-
K Divide. 4 20 16 9 4 2 == 16 9 (Type an integer or a simplified fraction.)
-
Gregory may choose between two accounts in which to invest $5000, both at 2.3% interest. Account A offers 2.3% annual interest compounded monthly. Account B offers 2.3% continuous compound interest....
-
x-6x-27 = 0 is equivalent to: =
-
what strategy hierarchy level each of the following marketing decisions have most likely been made with explanation why you choose that PepsiCo Strategy Decisions: 1- PepsiCo decides to sell their...
-
How does goal-setting theory inform our understanding of motivation, and what implications does it hold for enhancing performance and persistence ?
-
San Carlos Bank and Trust Company uses a credit-scoring system to evaluate most consumer loans that amount to more than $2,500. The key factors used in its scoring system are found at the conclusion...
-
Discuss some of the differences in the preparation and presentation of the operating statements of nongovernmental not-for-profit entities and governmental not-for-profit entities reporting as...
-
Write T if the corresponding statement is true. If the statement is false, write F and state what changes should be made to make it a true statement. 1. A general purpose government typically engages...
-
On July 1, 2013, the first day of its 2014 fiscal year, the City of Nevin issued at par $2,000,000 of 6 percent term bonds to construct a new city office building. The bonds mature in five years on...
-
A client maintains perpetual inventory records in both quantities and dollars. If the assessed level of control risk is high, an auditor would probably a. Insist that the client perform physical...
-
A CPA is engaged in the annual audit of a client for the year ended December 31, 19X9. The client took a complete physical inventory under the CPA's observation on December 15 and adjusted its...
-
In an audit of inventories, an auditor would least likely verify that a. All inventory owned by the client is on hand at the time of the count. b. The client has used proper inventory pricing. c. The...
Study smarter with the SolutionInn App