Find the Marketing Expense for the year of 2019 (Hint: Write all the accounts to debit or
Question:
- Find the Marketing Expense for the year of 2019 (Hint: Write all the accounts to debit or credit sides while considering their nature. The total of debit and credit sides should be equal.)
- Prepare and journalize the adjusting entries.
- Prepare the adjusted trial balance.
- Journalize the closing entries.
- Prepare Income Statement and Statement of Financial Position (Balance Sheet) of XYZ Service Company in proper form.
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ZYX Merchandising Company | |
Account | Balance |
Bank | 499.200 |
Interest Payable | 480.000 |
Bank Loan (5 years) | 1.472.000 |
Notes Receivable | 896.000 |
Service Revenue | 2.880.000 |
Cost of Service | 1.536.000 |
Office Supplies | 57.600 |
Accumulated Depreciation (Building) | 896.000 |
Equipment | 704.000 |
Marketing Expense | ???? |
Building | 1.280.000 |
Depreciation Expense (Building) | 192.000 |
Interest receivable | 240.000 |
Note payable (3 years) | 800.000 |
Cash | 89.600 |
Profit from sale of equipment | 19.200 |
Account Receivable | 364.800 |
Capital | 2.464.000 |
Utilities Expense | 614.400 |
Accounts Payable | 448.000 |
Bank Loan (1 year) | 160.000 |
Rent Expense | 336.000 |
Prepaid Rent | 160.000 |
Interest Expense | 153.600 |
Accumulated Depreciation (Equipment) | 576.000 |
Service discount | 80.000 |
Land | 2.560.000 |
Depreciation Expense (Equipment) | 512.000 |
Interest Revenue | 160.000 |
Insurance Expense | 112.000 |
Unearned Service Revenue | 224.000 |
ZYX Merchandising Company was established on January 1, 2019. As of December 31, 2019, the following additional information is available:
- $5.000 of Office Supplies has been used.
- Accrued interest revenue is $10.000.
- $15.000 of prepaid rent has expired as of December 31, 2019.
- As of December 31, 2017, $20.000 of the Unearned Service Revenue is earned.
Principles of Auditing and Other Assurance Services
ISBN: 978-0078025617
19th edition
Authors: Ray Whittington, Kurt Pany