Prepare the last entries of the year on the journal

Assignment Help Financial Accounting

Reference no: EM133607274

Assignment

Recording business transactions according to US GAAP. Consider a hypothetical firm with unadjusted trial balance at December 31as shown below:

Unadjusted trial balance Feb 28
Cash= 20700
Accounts receivable =3000
Land =20000
Building= 40000
Furniture= 6000
Computer = 2400
Note payable = 55000
Accounts payable = 5000
Cap stock = 30000
Revenue = 4600
Electricity expense= 500
Salary expense= 2000
TOTAL
94600
94600

At December 31, the company has to record the following transactions

Revenues obtained during the las 10 months: $250,000.00 all paid in cash

All expenses of the company during the last 10 months for $58,000

The $55,000 note payable has been issued on January 1 and bears 10% interest rate. Interests are paid every 1st of January. No repayment of the principal has been made

The building has a useful life of 30 years, an estimated salvage value of $5,000

Students are requested to:

A. Prepare the last entries of the year on the journal (revenues and expenses, adjusting entries)
B. Prepare the closing entries.
C. The balance sheet of the company closed at December 31.

Reference no: EM133607274

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