Reference no: EM132460489
Project Data:
1. Sam Evans owns and operates a consulting firm called Evans Consulting. The business began operating in October 2019.
2. Transactions for October and November 2019 have been recorded and posted. Evans Consulting had the following transactions in December 2019. Dec 2 Provided $3,950 consulting services to Gomez Company on account.
3 Paid $1,025 cash to Hillside Mall for Evans Consulting's share of mall advertising costs.
4 Paid $400 cash for minor repairs to the company's computer. 10 Purchased $1,100 of computer supplies on credit from Harris Office Products. 14 Paid cash to employee for six days of work at the rate of $125 per day. 15 Notified by Alex's Engineering Co. that Evans Consulting's' bid of $7,000 on a proposed project has been accepted. Alex's paid a $1,500 cash advance to Evans Consulting. 20 Completed a project for L Corporation and received $5,625 cash. 28 Received $3,000 cash from Gomez Co. on its receivable. 29 Reimbursed S. Evans $193 for business automobile mileage. 31 S. Evans withdrew $1,500 cash from the company for personal use.
The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months of operations:
a. The December 31 inventory count of computer supplies shows $320 still available.
b. Three of the four months' prepaid rent has expired.
c. Three months have expired since the 12-month insurance premium was paid in advance.
d. As of December 31, the only employee of Evans Consulting had not been paid for four days of work at $125 per day.
e. The computer system, acquired for $8,000 on October 1, is expected to have a four year life with no salvage value.
f. The office equipment, acquired for $20,000 on October 1, is expected to have a five year life with no salvage value.
Required:
Problem 1. the December transactions for Evans Consulting. You may omit explanations for the journal entries. Skip a line between each journal entry - see the journal entries for October - November as a formatting example.
Problem 2. Post the December transactions to the appropriate accounts in the modified ledger.
Problem 3. a trial balance to prove the equality of debits and credits prior to continuing with this project. Omit any accounts that have a zero balance. Check figure: $99,816. Consult your instructor if your trial balance does not balance before proceeding with the project.
Problem 4. the adjusting entries to reflect items a through f above.
Problem 5. Post the adjusting entries to the appropriate accounts in the ledger.
Problem 6. an adjusted trial balance as of December 31, 2019. Check figure: $101,816. Consult your instructor if your adjusted trial balance does not balance before proceeding with the project.
Problem 7. Prepare the three basic financial statements in good form. of your accounting text for a good example of financial statement formatting. a. an income statement for the three months ended December 31, 2019. b. a statement of owner's equity for the three months ended December 31, 2019. c. a balance sheet as of December 31, 2019.
Problem 8. and post the necessary closing entries for Evans Consulting.
Problem 9. a post-closing trial balance as of December 31, 2019. Page 4 of 14 Below are the journal entries recorded by Evans Consulting for October and November 2019.