Reference no: EM131712202

ACC7301 Accounting Assignment - PRACTICAL APPLICATION

Question - Given the following work sheet with the trial balance already entered, and the related adjustment information, complete the requirements listed below

Katies Kup Kake Eeatery  Accounting Work Sheet For the Year Ended December 31, 2011 (All numbers are in '$,000)

Account	Trial Balance		Adjustments		Inc. Statement		Balance Sheet
	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.	Dr.	Cr.
Cash	25
Accounts Rec.	12
Inventory	30
Prepaid Rent	6
Furniture	10
Accumulated Amortization- Furniture		2
Accounts Payable		12
Salary Payable		0
Unearned Revenue		15
Katie Kup, Capital		60
Katie Kup, Withdrawals	2
Sales Revenue		86
Sales Discounts	4
Sales Returns and Allowances	2
Cost of Goods Sold	45
Salary Expense	31
Rent Expense	0
Utilities Expense	8
Amortization Expense- Furniture
	175	175
Net Income/Loss

Required:

1)  Create any adjusting entries needed from the following additional information:

a) The Prepaid rent account represents six months rent paid October 1, 2011

b) The Furniture was purchased January 1, 2010 and is expected to have a 5 year useful life with no salvage value.

c) The unearned revenue represents a prepayment on February 1, 2011 for merchandise to be delivered over 15 months.

d) The Eatery employs 5 people, each who earn $200 a day and they work Monday to Friday. The year end of  December 31, 2011 is on a Friday.  The employees have not been paid for the last 5 days.

e) The hydro bill of $3,000 for December was received but not recorded or paid.

f) A new employee has been hired for $150 a day, with a 5 day week, and will start work on January 1, 2012.

2) Post Adjusting Entries into Worksheet

3) Complete Income Statement on Worksheet

4) Complete Balance Sheet on Worksheet

5) Prepare in Good Form Multi Step Income Statement

6) Prepare in Good Form Statement of Equity

7) Prepare in Good Form Classified Balance Sheet

8) Journalize Closing Entries

Attachment:- Assignment.rar