Reference no: EM131110679
Assignment question
The trial balance of Snapple Services at 31 December 2011 and the data for the year-end adjustments are as follows:
|
Account
|
Dr
17,000
35,000
2,500
1,800
48,000
|
Cr
|
|
|
Cash
Accounts receivable Prepaid rent
Supplies
Office equipment
|
|
Accumulated depreciation — office equipment
|
|
24,000
|
|
|
Furniture and fixtures
|
12,000
|
|
|
|
Accumulated depreciation — furniture and fixtures
|
|
3,000
|
|
|
Accounts payable
|
|
37,000
|
|
|
Accruals
|
|
0,
|
|
|
Unearned service revenue
|
|
3,500
|
|
|
Simon, Capital
|
|
20,000
|
|
|
Simon, Withdrawals
|
8,000
|
|
|
|
Service revenue
|
|
170,200
|
|
|
Rent expense
|
36,000
|
|
|
|
Salary expense
|
92,000
|
|
|
|
Utilities expense
|
3,200
|
|
|
|
Depreciation expense
|
0
|
g--\2vD
|
)_,OW
|
|
Supplies expense
|
2,200
|
|
|
|
Total:
|
257,700
|
257,700
|
|
Adjustment data:
1. Prepaid rent still in force at 31 Dec 2011, $1,200 25 \If c3)
2. Unearned service revenue still unearned at 31 Dec 2011, $3,000 35-Do
3. Supplies unused at 31 Dec 2011, $1,500 no - 1 Cuo ---- gob Lts9c),
4. Depreciation for the year for office equipment and furniture and fixture are $8,000 and $2,000 respectively
5. Accrued salary expense at 31 Dec 2011, $6,800 °\111)''
6. Accrued utilities expense at 31 Dec 2011, $300 5. 5 6-\) 3v\>
Requirements
a) Prepare adjusting journal entries.
b) Enter the trial balance on a worksheet and complete the worksheet of Snapple Services.
c) Prepare the income statement, the statement of owner's equity and balance sheet.
d) Prepare the closing entries and post-closing trial balance.
e) Calculate the gross profit margin, current and debt ratio of Snapple Services
f) List and explain the advantage and disadvantages of a proprietorship business for. If the owners of Snapple Services were thinking of converting to a corporation, what are the factors they should consider?
Assignment Format
1. Write your name clearly on the cover page using the Assignment Cover Form.
2. Your assignment should be type-written.
3. Spacing 1.5 with font size 11 using Arial script and justified.
4. Include page number_
5. Include a Reference Page at the end of your assignment.
6. There will be penalty for plagiarism.