One February 1, A&D opened for business. Prepare an income statement for the month ofFebruary and a balance sheet as of February 28, 2021, taking account of the following transactionsand adding new account titles as necessary. Do not forget to include in your balance sheet thosetransactions that occurred in January. (Note: Journal entries are required in part 2. In order to preparethe balance sheet, you need to compute the beginning and ending debit balance or credit balance of eachaccount for assets, liabilities, and shareholders' equity. However, to save your time, you do not have topresent them in the T-account format. An example is given below:)Cash103,00097,200Beginning debit balanceEnding debit balance= 103000+5200+1200-7000-6000+800 =1. (a) During the month of February, A&D perform repair service of $8,200 for its customers.Customers paid A&D $5.200 in cash for these services and charge $3,000 to accounts thatA&D allows them to open. (b) By the end of February, customers have paid $1,200 of theamounts they have charged and $1,800 in charges are outstanding.2. A&D paid Adam and David each a salary of $3,500 for the month of February.3. A&D paid the balance of $6,000 it owes to X Corp.4. Z LLC paid off the $800 note it gave to A&D. Adam and David are two entrepreneurs who agreed to form a corporation ("A&D") to operate a carrepair shop in the Boston region. They began business on January 1, 2021 with the followingtransactions occurred during the month of January. Prepare journal entries, T-accounts, and abalance sheet as of January 31, 2021 for A&D. Organize your T-accounts by following the order ofassets, liabilities, equity, revenues, and expenses. Each T-account should start with a beginningbalance and end with an ending balance for each reporting period. (Note: for T-accounts, you may usea table like the one below. Create a table using the "Insert" or "Table" function in the ribbon. Cells can bemerged from the "Table" function in the ribbon. You can access more format functions when you click thethree dots on the right side above the text entry box.)Name of account 1Name of account 2Name of account 31. (a) Adam contributed $100,000 to A&D in exchange for 1,000 shares of A&D common stock. (b)David transferred to A&D title to a shop space, valued at $100,000, in exchange for 1,000 sharesof A&D common stock.2. A&D bought tools and supplies for $9,000 from X Corp., charging the purchase to its account.3. A&D ordered $2,000 in a used equipment from a supplier (Y Corp.). The terms of the orderpermitted A&D to cancel the order without any obligation whatsoever up until the time ofdelivery.4. A&D borrowed $8,000 from a local bank, a one-year loan with 10% annual interest rate. Theloan agreement specifies that interest and principle will be paid on the loan's maturity date.S. Y Corp. delivered the equipment A&D ordered. A&D paid Y Corp. for the equipment when it wasdelivered.6. A&D paid X Corp. $3,000 on its account.7. A&D realized that it ordered one repair tool too many from X Corp.. It sold the extra tool to alocal garage (Z LLC) for $800, which is what A&D paid for it. Z LLC gave A&D a note, payable byZ LLC to A&D in 30 days.

Name: One February 1, A&D opened for business. Prepare an income statement
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Description: One February 1, A&D opened for business. Prepare an income statement for the month ofFebruary and a balance sheet as of February 28, 2021, taking account of the following transactionsand adding new account titles as necessary. Do not forget to inclu

Journal Entries: Date Accounts Debit Credit 1a Cash 100000 Common Stock 100000…

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Adam and David are two entrepreneurs who agreed to form a corporation ("A&D") to operate a car repair shop in the Boston region. They began business on January 1, 2021 with the following transactions occurred during the month of January. Prepare journal entries, T-accounts, and a

Adam and David are two entrepreneurs who agreed to form a corporation ("A&D") to operate a car repair shop in the Boston region. They began business on January 1, 2021 with the following transactions occurred during the month of January. Prepare journal entries, T-accounts, and a

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter3: The General Journal And The General Ledger

Section: Chapter Questions

Problem 5PA: Following is the chart of accounts of Sanchez Realty Company: Sanchez completed the following...

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Considering the following events, determine which month the revenue or expenses would be recorded using the accounting method specified. a. Gerber Company uses the cash basis of accounting. Gerber prepays cash in May for insurance that only covers the following month, (June). b. Matthews and Dudley Attorneys uses the accrual basis of accounting. Matthews and Dudley Attorneys receives cash from customers in June for services to be performed in July. c. Eckstein Company uses the accrual basis of accounting. Eckstein prepays cash in October for rent that covers the following month, (October). d. Gerbino Company uses the cash basis of accounting. Gerbino makes a sale to a customer in February but does not expect payment until March.
For each of the following accounts, identify whether it would be closed at year-end (yes or no) and on which financial statement the account would be reported (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Accounts Payable B. Accounts Receivable C. Cash D. Dividends E. Fees Earned Revenue F. Insurance Expense G. Prepaid Insurance H. Supplies
For each of the following accounts, identify whether it would be closed at year-end (yes or no) and on which financial statement the account would be reported (Balance Sheet, Income Statement, or Retained Earnings Statement). A. Retained Earnings B. Prepaid Rent C. Rent Expense D. Rent Revenue E. Salaries Expense F. Salaries Payable G. Supplies Expense H. Unearned Rent Revenue
It is now August 31. You have journalized and posted the adjustments in the All About You Spa accounting records, and Ms. Valli wants to see financial statements for the last two months (July and August). Then she would like you to prepare the closing entries. Required 1. Prepare an income statement for the two months ended August 31, 20--. 2. Prepare a statement of owners equity for the two months ended August 31, 20--. Ignore this step if using QuickBooks. 3. Prepare a balance sheet as of August 31, 20--. 4. Journalize the closing entries in the general journal. If you are preparing the closing entries using Working Papers, enter your transactions beginning on page 5. 5. Post the closing entries to the general ledger accounts. Ignore this step if you are using QuickBooks or CLGL. 6. Prepare a post-closing trial balance as of August 31, 20--. Check Figures 1. Net income, 15,314.18 2. A. Valli, Capital (end of period), 67,085.93 3. Balance Sheet report total assets, 83,081.33 4. Post-closing trial balance total, 83,935.12
Prepare journal entries to record the following transactions. Create a T-account for Unearned Revenue, post any entries that affect the account, tally ending balance for the account (assume Unearned Revenue beginning balance of $12,500). A. May 1, collected an advance payment from client, $15,000 B. December 31, remaining unearned advances, $7,500
Prepare journal entries to record the following business transaction and related adjusting entry. A. January 12, purchased supplies for cash, to be used all year, $3,850 B. December 31, physical count of remaining supplies, $800
Following is the chart of accounts of Smith Financial Services: Smith completed the following transactions during June (the first month of business): Required 1. Journalize the transactions for June in the general journal. 2. Post the entries to the general ledger accounts. (Skip this step if you are using CLGL.) 3. Prepare a trial balance as of June 30, 20. 4. Prepare an income statement for the month ended June 30, 20. 5. Prepare a statement of owners equity for the month ended June 30, 20. 6. Prepare a balance sheet as of June 30, 20.
As of December 31, the end of the current year, the ledger of Harris Company contained the following account balances after adjustment. All accounts have normal balances. Journalize the closing entries.
Following is the chart of accounts of Sanchez Realty Company: Sanchez completed the following transactions during April (the first month of business): Required 1. Journalize the transactions for April in the general journal. 2. Post the entries to the general ledger accounts. (Skip this step if you are using CLGL.) 3. Prepare a trial balance as of April 30, 20. 4. Prepare an income statement for the month ended April 30, 20. 5. Prepare a statement of owners equity for the month ended April 30, 20. 6. Prepare a balance sheet as of April 30, 20. If you we using CLGL, use the year 2020 when preparing all reports.
After all revenue and expenses have been closed at the end of the fiscal period ended December 31, Income Summary has a debit of 45,550 and a credit of 36,520. On the same date, D. Mau, Drawing has a debit balance of 12,000 and D. Mau, Capital had a beginning credit balance of 63,410. a. Journalize the entries to close the remaining temporary accounts. b. What is the new balance of D. Mau, Capital after closing the remaining temporary accounts? Show your calculations.
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2016. The accounting cycle for Kelly Consulting for April, including financial statements, was illustrated in this chapter. During May, Kelly Consulting entered into the following transactions: Instructions 1. The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2016, is shown in Exhibit 17. For each account in the post-closing trial balance, enter the balance in the appropriate Balance column of a four-column account. Date the balances May 1, 2016, and place a check mark () in the Posting Reference column. Journalize each of the May transactions in a two column journal starting on Page 5 of the journal and using Kelly Consultings chart of accounts. (Do not insert the account numbers in the journal at this time.) 2. Post the journal to a ledger of four-column accounts. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete parts (5) and (6) a. Insurance expired during May is 275. b. Supplies on hand on May 31 are 715. c. Depreciation of office equipment for May is 330. d. Accrued receptionist salary on May 31 is 325. e. Rent expired during May is 1,600. f. Unearned fees on May 31 are 3,210. 5.(Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. 6.Journalize and post the adjusting entries. Record the adjusting entries on Page 7 of the journal. 7.Prepare an adjusted trial balance. 8.Prepare an income statement, a statement of owners equity, and a balance sheet. 9.Prepare and post the closing entries. Record the closing entries on Page 8 of the journal. (Income Summary is account #33 in the chart of accounts.) Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. 10.Prepare a post-closing trial balance.
Prepare journal entries to record the following transactions. Create a T-account for Accounts Payable, post any entries that affect the account, and tally ending balance for the account. Assume an Accounts Payable beginning balance of $5,000. A. February 2, purchased an asset, merchandise inventory, on account, $30,000 B. March 10, paid creditor for part of February purchase, $12,000