- The Following Additional Facts Are Collected For Use In Making Adjusting Entries Prior To Preparing Financial Statements 1 (61.21 KiB) Viewed 49 times
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- The Following Additional Facts Are Collected For Use In Making Adjusting Entries Prior To Preparing Financial Statements 6 (65.17 KiB) Viewed 49 times
The following additional facts are collected for use in making adjusting entries prior to preparing financial statements for the company's first three months: a. The December 31 inventory count of computer supplies shows $850 still available. b. Three months have expired since the 12-month insurance premium was paid in advance. c. As of December 31, Lyn Addie has not been paid for five days of work at $150 per day. d. The computer equipment acquired at the beginning of October is expected to have a five-year life with no salvage value. e. The office equipment acquired at the beginning of October is expected to have a ten-year life with no salvage value. f. Three of the four months' prepaid rent has expired. please update the General Journal, General Ledger, and trail balance as needed please zoom in on reference photos
11:07 AM Thu Jun 2 Answer 1 of 1 Please refer the following image for the solution: Answer Date Account titles and explanations 1-Oct Cash Computer Equipment Office Equipment Common stock (To record cash and equipment invested in business) 2-Oct Prepaid rent Cash (To record payment of rent for 4 months) 2-Oct Computer Equipment Cash (To record equipment purchased) 3-Oct Computer Supplies Accounts Payable (To record purchase of supplies on account) 5-Oct Prepaid insurance Cash (To record payment of insurance for 1 year) 6-Oct A/R-West Leasing Computer Service Revenue (To record service provided on account) 8-Oct Accounts Payable Cash (To record cash paid to creditors) 10-Oct 12-Oct A/R-West Leasing Computer Service Revenue (To record service provided on account) 15-Oct Cash A/R-West Leasing No Entry Debit S 75,000 5,000 5,000 4,500 17,000 1,600 4,380 4,300 1,600 2,600 4,300 100% Done Credit S 85,000 4,500 17,000 1,600 4,380 4,300 1,600 2,600 4,300
11:07 AM Thu Jun 2 17-Oct Repair expense - computer Cash (To record repair expense) 20-Oct Advertising expense Cash (To record advertising expense paid) 22-Oct Cash A/R - West Leasing (To record cash collected from customers) 28-Oct A/R - IFM co Computer Service Revenue (To record service provided on account) 31-Oct Wages expense Cash (To record wages expense paid for eight days) 31-Oct Dividends Cash (To record dividend paid) 1-Nov Mileage expense (1000*$0.32) Cash (To record mileage allowance reimbursed) 2-Nov Cash Computer Service Revenue (To record service provided for cash) 5-Nov Computer Supplies Cash (To record purchase of supplies) 8-Nov A/R - Gomez co Computer Service Revenue (To record service provided on account) 13-Nov Cash Answer 1 of 1 805 1,375 2,600 5,340 1,200 3.600 320 5.325 1,075 5,750 2,000 100% Done 805 1,375 2,600 5,340 1,200 3,600 320 5,325 1,075 5,750
11:07 AM Thu Jun 2 Answer 1 of 1 13-Nov Cash Unearned computer service revenue (To record cash received for services to be perfomed in future) 18-Nov Cash A/R - IFM co (To record cash collected from customers) 22-Nov Miscellaneous expense Cash (To record donation made to united way) 24-Nov A/R-Alex Engineering co. Unearned computer service revenue Computer Service Revenue (To record service provided on account) 25-Nov No Entry 28-Nov Mileage expense (1200*$0.32) Cash (To record mileage allowance reimbursed) 30-Nov Wages expense Cash (To record wages expense paid) 30-Nov Dividends Cash (To record dividend paid) 2-Dec Advertising expense Cash (To record advertising expense paid) 3-Dec Repair expense - computer Cash (To record repair expense) 4-Dec Cash A/R - Alex Engineering co. (To record cash collected from customers) 2,000 2,340 400 1,950. 2,000 384 2,100 2,500 1,025 500 1,950 100% Done 2,000 2,340 400 3,950 384 2,100 2,500 1,025 500 1,950
11:07 AM Thu Jun 2 Answer 1 of 1 3-Dec Repair expense - computer Cash (To record repair expense) 4-Dec Cash A/R - Alex Engineering co. (To record cash collected from customers) 10-Dec Wages expense ($150*6days) Cash (To record wages expense paid) 14-Dec Cash Unearned computer service revenue (To record cash received for services to be perfomed in future) 15-Dec Computer Supplies Accounts payable (To record purchase of supplies) 16-Dec No Entry 20-Dec Cash A/R-Liu corp (To record cash collected from customers) No Entry 28-Dec Cash A/R - Gomex co (To record cash collected from customers) 29-Dec Mileage expense (600*50.32) Cash (To record mileage allowance reimbursed) 31-Dec Dividends Cash (To record dividend paid) 22-26 Dec 500 1,950 900 3,000 1,100 5,625 3,000 192 1,800 100% Done 500 1.950 900 3,000 1,100 5,625 3,000 192 1,800
update the general ledger to ensure balances agree with these check figures. do this by using Dec 31, 2021 as the date, Correct Balance as the item, and enter the correct balance in the balance column Use the additional information provided to prepare adjusting entries. These entries should be recorded in your general journal and then posted to the general ledger. Record the adjusting entries to the Excel worksheet and prepare an adjusted trial balance as of December 31, 2021. create a formula in the adjusted balance column for each account. (This formula should be such that if amounts in unadjusted column and/or the adjusting entry column changed, the adjusted balance would change.) Prepare the following financial statements: a. Income statement for the three months ended December 31, 2021. b. Statement of retained earnings for the three months ended December 31, 2021. c. Balance sheet as of December 31, 2021. Prepare/record closing entries in your general journal and then post to the general ledger. Complete a Excel spreadsheet through the closing process. a. Record closing entries prepared earlier in the closing entries' columns. b. use formulas to complete the post-closing trial balance. (These numbers should agree with the general ledger balances.)