An inventory of supplies showed $1,000 were used up. 2. There was $600 of depreciation on Furniture. 3. $3,000 of insurance was purchased for 12 months. $1,000 of insurance was used. 4. Performed $500 of services that was paid for in advance. 5. On last day of the month, performed $4,000 of services for new customer and will be paid next month. 6. Happy cleaners provided $10,000 of cleaning services on the last day of the month. This was a special yearly clean. They will be paid next month. 7. An inventory count revealed there was $35,000 of inventory shrinkage. This was a larger than usual amount of shrinkage. 8. The company estimates bad debt expense to be 2% of creditsales. Assume all sales in the service revenue or sales revenue accont are made on credit. Find the Adjusted Balance, Income Sheet, Statement of Owner's Equity and Balance Sheet.
An inventory of supplies showed $1,000 were used up. 2. There was $600 of depreciation on Furniture. 3. $3,000 of insurance was purchased for 12 months. $1,000 of insurance was used. 4. Performed $500 of services that was paid for in advance. 5. On last day of the month, performed $4,000 of services for new customer and will be paid next month. 6. Happy cleaners provided $10,000 of cleaning services on the last day of the month. This was a special yearly clean. They will be paid next month. 7. An inventory count revealed there was $35,000 of inventory shrinkage. This was a larger than usual amount of shrinkage. 8. The company estimates bad debt expense to be 2% of creditsales. Assume all sales in the service revenue or sales revenue accont are made on credit. Find the Adjusted Balance, Income Sheet, Statement of Owner's Equity and Balance Sheet.
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter4: Income Measurement And Accrual Accounting
Section: Chapter Questions
Problem 4.34E
Related questions
Question
1. An inventory of supplies showed $1,000 were used up.
2. There was $600 of
3. $3,000 of insurance was purchased for 12 months. $1,000 of insurance was
used.
4. Performed $500 of services that was paid for in advance.
5. On last day of the month, performed $4,000 of services for new customer
and will be paid next month.
6. Happy cleaners provided $10,000 of cleaning services on the last day of the
month. This was a special yearly clean. They will be paid next month.
7. An inventory count revealed there was $35,000 of inventory shrinkage. This
was a larger than usual amount of shrinkage.
8. The company estimates
all sales in the service revenue or sales revenue accont are made on credit.
Find the Adjusted Balance, Income Sheet, Statement of Owner's Equity and Balance Sheet.
Transcribed Image Text:COMPREHENSIVE QUESTION #8 WORKSHEET (chapters 1-6, 8-10)
Depreciation Expense- Furniture
Adj2
Accumulated Depreciation-Furniture
Adj2
Bal.
O Bal.
Insurance expense
Cleaning expense
Adj3
Adj6
Bal.
Bal.
Cost of goods sold
25,000
Inventory
O Adj7
Unadj Bal.
Adj7
Unadj Bal, 60,000
Bal.
25,000
Bal.
60,000
Bad Debt Expense
Allowance for Doubtful Accounts
Unadj Bal.
Adj8
Unadj Bal.
Adj8
O Bal.
Bal.
5 of 8
Transcribed Image Text:COMPREHENSIVE QUESTION #8 WORKSHEET (chapters 1-6, 8-10)
General Ledger (starting with balances from unadjusted trial balance)
Accounts Payable
Cash
Unadj Bal.
Adj6
900 Bal.
Unadj Bal.
23,400
900
Bal.
23,400
Accounts Receivable
Utilities Payable
Unadj Bal.
Adj5
1,100
600
Unadj Bal.
Bal.
1,100
600 Bal.
Office Supplies
Unearned Revenue
Unadj Bal.
5,000
Adj1
Adj 4
24,000
Unadj Bal.
Bal.
5,000
24,000 Bal.
Prepaid Insurance
Common Stock
Unadj Bal.
3,000
Adj3
73,800
Unadj Bal.
Bal.
3,000
73,800 Bal.
Land
Dividends
Unadj Bal.
24,000
Unadj Bal.
4,000
Bal.
24,000
Bal.
4,000
Furniture
Service Revenue or Sales Revenue
Unadj Bal.
Adj4
Adj5
57,000 Bal.
Unadj Bal.
1,800
57,000
Bal.
1,800
Salary Expense
6,000
Utilities Expense
Undadj
Unadj Bal.
1,000
Bal.
6,000
Bal.
1,000
Supplies Expense
Rent Expense
2,000
Adj1
Unadj Bal.
Bal.
Bal.
2,000
4 of 8
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