Economics, Inc. has started its operation in late 2016. At the beginning it was generating revenue from sales commission and after it expanded its operation by providing management services. By the end of 2017 the company has hired you as independent consultant to help with comprising final balance sheet and income statement. Required: 1. Provide ALL adjustments by the end of 2017 (all journal entries have to have account numbers).

Economics, Inc. has started its operation in late 2016. At the beginning it was generating revenue from sales commission and after it expanded its operation by providing management services. By the end of 2017 the company has hired you as independent consultant to help with comprising final balance sheet and income statement. Required: 1. Provide ALL adjustments by the end of 2017 (all journal entries have to have account numbers).

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

ChapterMB: Model-building Problems

Section: Chapter Questions

Problem 2M

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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.
Wyoming Tours Co. is a travel agency. The nine transactions recorded by Wyoming Tours during June 2016, its first month of operations, are indicated in the following T accounts: Indicate for each debit and each credit: (a) whether an asset, liability, owners equity, drawing, revenue, or expense account was affected and (b) whether the account was increased (+) or decreased (). Present your answers in the following form, with transaction (1) given as an example:
Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. 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-closingtrial balance as of April 30, 2019, 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, 2019, and place a check mark () in the Posting Reference column. Journalize each of the May transactions in a twocolumn 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. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 10. Prepare a post-closing trial balance.
Badger Bagels had the following separate situations occur during 2016.The company’s accountant is preparing the annual financial statements at December 31, 2016 and has asked you to record the adjusting entries for each situation in the journal entry form. a. The Unearned Revenue account has an unadjusted balance of $8,000 consisting of gift cards sold to customers. Redeemed gift cards that have not yet been recorded total $4,800. b. At the beginning of the year, the company purchased supplies worth $5000 and paid cash. At December 31, 2016, the supplies available are $2000. c. At December 31, 2016, employee wages of $9,200 have been incurred but not paid or recorded. d. Nine months ago, the company paid one year's advance rent of $1200 in cash. e. The company purchased equipment on January 1 by paying $ 100,000 cash. Unrecorded depreciation on equipment is $11,200.
Selected T-account balances for Bloomfield Company are shown below as of January 31, 2017; accounting adjustments have already been posted. The firm uses a calendar-year accounting period but prepares monthly adjustments.
In this case you will complete the full accounting cycle for one month for a new company. To facilitate the end-of-month accounting and reporting process you will use a worksheet. The worksheet is a tool used to adjust account balances and prepare financial statements, however, the worksheet does not replace the financial statements. Preparation of a worksheet is covered in Appendix 3C on pages 3-46 through 3-49. The following is information concerning the company. Instructions are at the end of the case. At the start of the new business the company set up the following chart of accounts: 101 Cash 405 Commissions Earned 106 Accounts Receivable 410 Consulting Revenue 124 Office Supplies 612 Depreciation Expense—Computer Equip. 128 Prepaid Insurance 622 Salaries Expense 167 Computer Equipment 637 Insurance Expense 168 Accumulated Depreciation—Computer Equip. 640 Rent Expense 209 Salaries Payable…
FOR THESE TWO QUESTIONS A and B, assume the accrual basis of accounting and a year-end of 31 December. Show your calculations! A) Google had the following transactions in 2020: A total of $1,500,000 was billed to clients for accounting services completed. During 2020, a total of $1,300,000 was collected from clients. This included $90,000 in respect of work that was carried out in 2019. In addition, at the end of December 2020, Google was working on the accounting files of five new clients, none of which had been billed. Two contracts, valued at $60,000 each when complete, were only at the early preparation stage. However, the other three, valued at $80,000 each, were completed. Question: What was Google’s accounting services revenue for 2020? b) Apple reported earnings of $15 per share in 2020. The dividend payout ratio was 40%. John Abbott owned 20% of the common shares, received a dividend cheque for $42,500. i) How many shares does John Abbott own? ii) What were Apple's…
A few years ago, Sam Gig founded Gig n Spin Consultancy Services. Sam is aware that you and your group members are pursuing an accounting course while in college and therefore has approached the team for advice. He wishes to know how much net income his business earned during the past year in order to decide whether to keep the company going. His accounting records consist a trial balance and some additional notes required to make adjustments to the financial statements. The company unadjusted trial balance for the year ended December 31st, 2015 was shown as follows: Gig n Spin Consultancy ServicesTrial BalanceDecember 31st 2015DR CRCash 120,000Accounts receivable 65,000Supplies 25,000Lease Hold Improvement 100,000Accumulated depreciation - Leasehold Improvement 40,000Furniture and Fixtures 500,000Accumulated depreciation - Furniture and Fittings 300,000Accounts payable 25,000Salary PayableUnearned service revenue 18,500Sam Gig, Capital 223,200Sam Gig, Withdrawal 148,000Service revenue…
The company Computadoras Caribe, after making the adjustments in the month of March, has the following balances in the books, which are found in the following trial balance: Prepares the multi-step income statement (multi-step income statement).Prepare the statement of owner's equity.Prepare the statement of owner's equity (balance sheet). Caribbean ComputersAdjusted Trial BalancePeriod ending March 31, 2020 Account title Ref. Debit Credit Cash $17,560 Account Receivable 18,065 Supplies 60,500 Building 180,000 Acc. Depreciation-Building $22,000 Equipment 45,600 Acc. Depreciation-Equipment 5,800 Account Payable 29,200 Salary Payable 3,500 Interest Payable 1,000 Unearned Sales Revenue 7,000 Note Payable, Long Term 85,000 J. Ayala, Capital 180,000 J. Ayala, Withdrawals 5,000 Sales Revenue 150,000 Sales Discounts 6,200 Sales Return and Allowances 7,600 Cost of Goods Sold…
During 2022, its first year of operations as a delivery service, Shamrock Corp. entered into the following transactions. 1. 2. 3. 4. 5. 6. 7. 8. 9. Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to revenues or expenses in the right-hand margin. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (1) Issued shares of common stock to investors in exchange for $90,000 in cash. Borrowed $40,500 by issuing a note. Purchased delivery trucks for $54,000 cash. Performed services for customers for $14,400 cash. Purchased supplies for $4,230 on account. Paid rent of $4,680. Performed services on account for $9,000. Paid salaries of $25,200. Paid a dividend of $9,900 to shareholders. (2) $ Cash $ Accounts Receivable Assets + $ Supplies $…
The following unadjusted trial balance is for Ace Construction Co. as of the end of its 2017 fiscal year. The June 30, 2016, credit balance of the owner’s capital account was $53,660, and the owner invested $35,000 cash in the company during the 2017 fiscal year. 1. Prepare and complete a 10-column work sheet for fiscal year 2017, starting with the unadjusted trial balance and including adjustments based on these additional facts. a. The supplies available at the end of fiscal year 2017 had a cost of $3,300. b. The cost of expired insurance for the fiscal year is $3,800. c. Annual depreciation on equipment is $8,400. d. The June utilities expense of $650 is not included in the unadjusted trial balance because the bill arrived after the trial balance was prepared. The $650 amount owed needs to be recorded. e. The company’s employees have earned $1,800 of accrued wages at fiscal year-end. f. The rent expense incurred and not yet paid or recorded at fiscal year-end is $500. g. Additional…
Automation Services Co. offers its services to companies desiring to use technology to improve their operations. After the accounts have been adjusted at December 31, the end of the fiscal year, the following balances were taken from the ledger of Automation Services: Fees Earned $614,500 Dividends 45,000 Rent Expense 140,000 Retained Earnings 3,250,000 Supplies Expense 18,200 Wages Expense 320,000 Miscellaneous Expense 8,700 Journalize the closing entries. Refer to the Chart of Accounts for exact wording of account titles.