Unadjusted Trial Balance 30-Jun-23 Accounts Dr Cr Cash 22,000 Prepaid Insurance 2,000 Equipment 5,040 Loan Payable...

  

Transcribed Image Text:

Unadjusted Trial Balance 30-Jun-23 Accounts Dr Cr Cash 22,000 Prepaid Insurance 2,000 Equipment 5,040 Loan Payable 1,200 Unearned Revenue 1,300 Common Stock 3,500 Retained Earnings 250 Dividends 1,050 Consulting Income 23,840 Totals 30,090 30,090 BCS has monthly accounting periods. The events below may require adjusting entries: 1. BCS borrowed $1200 on June 15 from First National Bank at an 8% annual interest rate. BCS plans to pay the loan back plus interest on October 31. 2. BCS paid for 3 months of insurance on April 15. The insurance policy coverage began on May 1" 3. On May 19th, a client paid BCS cash of $1,300 for consulting work to be performed in June. During June, BCS completed 50% of the work and plans to complete the rest in July. 4. On June 11th consulting services were completed for a client for an agreed upon price of $900. The client has not yet been billed and nothing has been recorded yet in the ledger. 5. Equipment was purchased for $5,040 on June 1. The equipment has a 10-year useful life, has no salvage value, and will be depreciated according to the straight-line method. Complete the following: 1. All necessary adjusting entries 2. Adjusted trial balance 3. Closing journal entries 4. Post-closing trial balance Extra Credit: What is the book value of the equipment on July 1, 2023? Unadjusted Trial Balance 30-Jun-23 Accounts Dr Cr Cash 22,000 Prepaid Insurance 2,000 Equipment 5,040 Loan Payable 1,200 Unearned Revenue 1,300 Common Stock 3,500 Retained Earnings 250 Dividends 1,050 Consulting Income 23,840 Totals 30,090 30,090 BCS has monthly accounting periods. The events below may require adjusting entries: 1. BCS borrowed $1200 on June 15 from First National Bank at an 8% annual interest rate. BCS plans to pay the loan back plus interest on October 31. 2. BCS paid for 3 months of insurance on April 15. The insurance policy coverage began on May 1" 3. On May 19th, a client paid BCS cash of $1,300 for consulting work to be performed in June. During June, BCS completed 50% of the work and plans to complete the rest in July. 4. On June 11th consulting services were completed for a client for an agreed upon price of $900. The client has not yet been billed and nothing has been recorded yet in the ledger. 5. Equipment was purchased for $5,040 on June 1. The equipment has a 10-year useful life, has no salvage value, and will be depreciated according to the straight-line method. Complete the following: 1. All necessary adjusting entries 2. Adjusted trial balance 3. Closing journal entries 4. Post-closing trial balance Extra Credit: What is the book value of the equipment on July 1, 2023?