You have been hired by Peters CAD, a small engineering and drafting firm, to help prepare...

 

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You have been hired by Peters CAD, a small engineering and drafting firm, to help prepare a set of financial statements for the bank for the fiscal year ending October 31. You have reviewed all the transactions for the year and find the following information that has not been recorded in the company's books. 1) 2) 3) 4) During October, Peters CAD provided $11,400 of CAD services to clients who will be billed in early November. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. The firm paid $14,400 cash on October 15 for a series of radio commercials to run during October and November. One-third of the commercials have aired by October 31st. The $14,400 payment was recorded in the Prepaid advertising account. Monthly depreciation on the equipment is $870. No depreciation has been recorded yet for the year. Weekly salaries for a five-day week total $37,500, payable on Fridays. October 31 of the current year is a Tuesday. Required: Prepare accounting adjustments required at October 31 using the financial statement effects template that follows. Transaction 1) 2) 3) 4) Cash Asset Balance Sheet Noncash Assets =Liabilities + Contrib. Capital Earned Capital Revenues Income Statement Expenses Net Income You have been hired by Peters CAD, a small engineering and drafting firm, to help prepare a set of financial statements for the bank for the fiscal year ending October 31. You have reviewed all the transactions for the year and find the following information that has not been recorded in the company's books. 1) 2) 3) 4) During October, Peters CAD provided $11,400 of CAD services to clients who will be billed in early November. The firm uses the account Fees Receivable to reflect amounts due but not yet billed. The firm paid $14,400 cash on October 15 for a series of radio commercials to run during October and November. One-third of the commercials have aired by October 31st. The $14,400 payment was recorded in the Prepaid advertising account. Monthly depreciation on the equipment is $870. No depreciation has been recorded yet for the year. Weekly salaries for a five-day week total $37,500, payable on Fridays. October 31 of the current year is a Tuesday. Required: Prepare accounting adjustments required at October 31 using the financial statement effects template that follows. Transaction 1) 2) 3) 4) Cash Asset Balance Sheet Noncash Assets =Liabilities + Contrib. Capital Earned Capital Revenues Income Statement Expenses Net Income

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