Create a trial balance and income statement, Financial Accounting

Assignment Help:

Create a Trial Balance and Income Statement

Cash                                     $18,470   
A/R                                         14,333                           
Advertising Supplies                   3,998
Prepaid Insurance                     23,137
Equipment                              135,495
A/D – Equipment                     $19,207
Accounts Payable                       11,998
Unearned Service Revenue          14,336
Notes Payable                             62,679
Common Stock                            67,546
Retained Earnings                         19,667   
Totals                                         $195,433              

During the month of July, the following occurred:
July 2    received $8,127 of the prior month’s receivables
July 3    paid $5,220 of the prior month’s accounts payable and paid $3,200 for July rent
July 5    earned $6,736 worth of the prior month’s unearned revenue
July 6    provided a service and billed the client $3,376
July 9    bought advertising supplies for $2,217 on account
July 10    received $4,200 for a service to be provided
July 11    provided a service and billed the client $7,366
July 12    collected $9,127 of receivables
July 13    paid $7,500 of the notes payable
July 16    bought advertising supplies for $1,189 cash
July 18    provided a service and billed the client $4,934
July 20    received $2,700 for a service to be provided   
July 23    paid $4,223 travel expense (all for July travel)
July 24    paid $2,400 of accounts payable
July 25    paid temporary employees $3,356 of wages (all for July work)
July 26    paid $5,000 of the notes payable
July 27    paid the shareholder a $3,000 dividend
July 30    provided a service fully earning the $4,200 from July 10
July 31    paid the shareholder a $4,500 dividend


Required – Part A

Part A1    provide general journal entries in general journal form for the above transactions
Part A2    create a trial balance at July 31 fully taking into account the beginning balances and thegeneral journal entries recorded in part A1 (t-accounts are recommended for key accounts; do not hand them in t-accounts)


Adjusting Entry Information
a.    the insurance expires at a rate of $1,218 per month
b.    a month-end count reveals about $2,400 of advertising supplies remain on-hand
c.    annual depreciation (straight-line is used) is $19,356
d.    a thorough analysis reveals only $3,200 of the unearned revenue is not yet earned at month-end
e.    the interest on the N/P for the month is $418 (hint: don’t increase the principal of the note)
f.    estimated expenses for the month are $2,100 utilities and $800 telephone
g.    a bank reconciliation reveals that a $4,000 payment from a client (A/R) was not recorded

Required – Part B

Part B1    provide adjusting journal entries, in general journal form, for the above
Part B2    create an adjusted trial balance
Part B3    create an income statement and a statement of retained earnings for the month of July
Part B4    create a balance sheet at 7/31/12
Part B5    provide closing entries in general journal form


Related Discussions:- Create a trial balance and income statement

Estimate the quantity of money, The economy of Cotai contains 2000 $1 bills...

The economy of Cotai contains 2000 $1 bills. (a) If people hold all money as currency, what is the quantity of money? (b) If people hold all money as demand deposits and bank

Future rates of return, Assume your grandparents have just given you $20,00...

Assume your grandparents have just given you $20,000 on the condition that you invest the money in the stock market. As you contemplate making your investment choices, what account

Prepare a master budget, Prepare a master budget You have just been hi...

Prepare a master budget You have just been hired as a new management trainee by XYZ Limited, a distributor of earrings to various retail outlets located in shopping malls acro

Question, A. Material Sampling -Analyzing Direct Material Costs You are r...

A. Material Sampling -Analyzing Direct Material Costs You are reviewing a cost proposal, which includes an $800,200 direct material estimate. After Initial examination of the pr

Beta of stock x, You have observed the following returns over time: ...

You have observed the following returns over time: Year Stock X Stock Y Market 2006 13% 13%

Illustration of admissions and retirements, Illustration of Admissions and ...

Illustration of Admissions and Retirements Jim and Ken have been trading in partnership for several, sharing profits or losses equally after allowing for interest on their capi

Advantages and disadvantages of curve , You would like to start investing i...

You would like to start investing in the bond markets and your investment horizon is two years.  In view of the current extremely low interest rate environment, you expect the U.S.

Goodwill, GOODWILL This is defined as “the difference between the value o...

GOODWILL This is defined as “the difference between the value of a business as a whole and the fair value of its net separable assets”. Goodwill in practical sense is the advant

Explain working of fca, Q. How does FCA diverse from what cities already do...

Q. How does FCA diverse from what cities already do? Numerous cities at present employ budget-based, or cash-flow, accounting-they report their present costs and figure their e

Explain a reduction in expected inflation - prices and wages, Assume that p...

Assume that prices and wages adjust rapidly so that the markets for labor, goods, and assets are always in equilibrium. What are the effects of each of the following on real money

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd