EP Lawyers operates a number of Law firms in Melbourne and Sydney. The following information listed in the table below relates to a number of accounts from the trial balance of EP Lawyers (post adjustments) for the year ending 30 June 2019. Accounts $ Accounts payable Telephone expense Services revenue Buildings Office equipment Cash at Bank Advertising expense Accounts receivable Salaries & Wages Mortgage payable Office supplies Capital Office materials expense Drawings Land Rent expense Utilities (gas/water, etc.) 96 000 30 285 663 750 650 000 18 000 71 020 30 375 108 000 191 700 870 000 27 000 355 885 137 565 67 500 360 000 60 390 71 910 Required: a) Based on the information provided in the table above, prepare the Income Statement for EP Lawyers. b) In your own words, explain what the purpose of a statement of comprehensive income is and who do you think would use it? Justify your answer
Q: Finders Investigative Services is an investigative services firm that is owned and operated by Stacy…
A: 1.
Q: D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being…
A: a) Calculate the owner's equity for DD Cleaners as on July 1, 2019.
Q: On August 1, 2019, Rafael Masey established Planet Realty, which completed the following…
A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
Q: [The following information applies to the questions displayed below.] Carmen Camry operates a…
A: Workings: Net income=Total revenue-Total expenses=$27,040-$(9,590+5,640+920+550)=$10,340
Q: From the ledger balances given below, prepare a trial balance for the Marigold Corp. at June 30,…
A: Trial balance for Marigold corp. is as follows:
Q: Connie Young, an architect, opened an office on October 1, 2019. During the month, she completed the…
A: Unadjusted Trial Balance: This is the worksheet that represents all the accounts that have a…
Q: Nihal started an accounting service business. The following transactions took place in the business…
A: Three golden rules of accounting are, Debit the receiver, credit the giver. Debit what comes in,…
Q: Kelly Pitney began her consulting business, Kelly Consulting, on 1 April 2019. During May, Kelly…
A: Journal entries indicate the reporting of the day to day business operating transactions related to…
Q: Sheffield, CPA, opened an accounting consulting practice on January 1, 2020. During the first month…
A: Adjusting entries are prepared at the end of the accounting period in order to ensure the accrual…
Q: Turane organized a computer service company called Aster Systems. Aster is organized as a sole…
A: Financial statements refers to those statements which are prepared in order to determined the…
Q: 1.Determine the net income 2. Prepare a statement of comprehensive income.
A: Net income means income left about after the expenses. Comprehensive Income means net income after…
Q: Carmen Camry operates a consulting firm called Help Today, which began operations on December 1. On…
A: Income statement is the financial statement which is prepared to compute the net income and to check…
Q: a. Journalize and post quarter transactions. b. Prepare December 31st, 2019 trail balance c. Use the…
A: Final Accounts Journal entries are used to record transactions. It then posted into ledger…
Q: [The following information applies to the questions displayed below.] Carmen Camry operates a…
A: The shareholders' equity of owners gets affected by additional investment, withdrawals, dividend…
Q: Journal entries and trial balanceOn January 1, 2019, Sharon Matthews established Tri-City Realty,…
A: Journal entry is the process of recording the business transactions in the books of accounts for the…
Q: Pitman Company is a small editorial services company owned and operated by Jan Pitman. On October…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: For the past several years, Jeff Horton has operated a part-time consulting business from his home.…
A: As there are multiple sub parts, only the first three are answered.
Q: On October 1, 2019, Santana Rey launched a computer services company, Business Solutions, that is…
A: Account receivable: The amount of money to be received by a company for the sale of goods and…
Q: On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following…
A: As posted multiple sub parts we are answering only one kindly repost the unanswered question as a…
Q: On March 1, 2021, Jashen Dela Rosa, M.D., established the JDR Sports Rehab Clinic. Transactions…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: s Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently being…
A: The cash flow statement assesses a corporation's ability to handle its cash balance, or how…
Q: Kelly Pitney began her consulting business, Kelly Consulting, on 1 April 2019. During May, Kelly…
A: The adjusting entries are required to be made at the end of the year in order to adjust the accrued,…
Q: Bev's Dry Cleaners is owned and operated by Beverly Zahn. A building and equipment are currently…
A: Bev's Dry Cleaners Statement of Owner's Equity For the month ended November 30, 2019 Beverley…
Q: Post the transactions to “T” accounts for this For the past several years, Jolene Upton has…
A: Prepare T-accounts.
Q: The accounting records of LeClaire Delivery Services show the following assets and liabilities as of…
A: The balance sheet is considered as a summary of assets and liabilities. It is also known as the…
Q: On October 1, 2018 Abdullah formed Accounting Consulting Co. to provide accounting services. The…
A: Balance sheet is a financial statement which is prepared to analyse financial position of business.…
Q: The following is the trial balance of J. Jamieson as on 31 October 2020. You are to draw up an…
A: Income statement is a financial statement which shows all income and expenses of the business for…
Q: Chloe has done the accounting through August 16, the first sixteen days of business for her company.…
A: Calculate the cash balance as of August 31, 2019. The cash balance as of August 31, 2019 is the…
Q: The following trial balance was extracted from the books of Syarikat Wawa at 31 Mac 2020:…
A: Income statement is a statement prepared to calculate the net income of a company after deducting…
Q: Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. The accounting cycle…
A: Journal entries refer to the systematic documentation of all the financial transactions of a company…
Q: Journalize each transaction 2. Post each journal entry to their separate ledgers using the running…
A: Date General Journal Debit Credit Feb-02 Accounts Receivable 18,600 Service…
Q: D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: The accounting records of LeClaire Delivery Services show the following assets and liabilities as of…
A: Workings Notes: 1. Balance sheet for the business as of the end of 2019 Assets Amount in $…
Q: PM Consultants operates a number of Consultancy firms (Perth and Adelaide). The following…
A: Income statement is an statement which presents the performance of a firm for an accounting period.…
Q: On October 1, 2018 Abdullah formed Accounting Consulting Co. to provide accounting services. The…
A: Transactions are recorded in the form of journal entries. Then posted into ledger and afterword…
Q: Flint, CPA, opened an accounting consulting practice on January 1, 2020. During the first month of…
A: Adjusting Entries : Adjusting journal entries are used to record transactions that have occurred but…
Q: Sophie Lacson started her own consulting firm, Lacson Consulting, on September 1, 2019. The…
A: Debit and credit are two aspects of a business transaction. These are used in double entry system of…
Q: On August 1, 2019, Rafael Masey established Planet Realty, which completed the following…
A: Since you have posted a question with multiple parts. we will be answering you first three subparts…
Q: For the past several years, Angela Smith operated a part-time consulting business from her home. As…
A:
Q: Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. The accounting cycle…
A: As Exhibit 9 is not provided in the question, we have used the general chart of accounts. As you…
Q: [The following information applies to the questions displayed below.] Abd El Hakim operates a…
A: Calculation of Opening Capital Balance:
Q: On October 1, 2018 Abdullah formed Accounting Consulting Co. to provide accounting services. The…
A: Balance sheet is one of the financial statement of business which shows financial position of…
Q: Kolly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. The accounting cycle…
A: In every journal entry that is recorded, the debits and credits must be equal to ensure that the…
Q: The following is the trial balance of J. Jamieson as on 31 October 2020. You are to draw up an…
A: SOLUTION- INCOME STATEMENT IS ONE OF THE FINANCIAL REPORTS OF THE COMPANY PROVIDING A SUMMARY OF…
Q: The transactions completed by PS Music during June 2019 were described at the end ofChapter 1. The…
A: Bookkeeping refers to the process of recording the financial transactions in the books of account on…
Q: Ken Jones, an architect, opened an office on April 1, 2019. During the month, he completed the…
A: 1&2
Q: ate Particulars Debit ($) Credit ($) 09-Jan Cash $7,050 Supplies $1,250 Office…
A:
Q: receivable 44,516 Fixtures 4,600 Shop 174,000 Cash at bank 11,346 Drawings…
A:
Q: Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2019. The accounting cycle…
A: As Exhibit 9 is not provided in the question, we have used the general chart of accounts. As you…
Q: Billed
A: Journal entries in the books of Laurente Services DATE Account Titles and Explanations…
EP Lawyers operates a number of Law firms in Melbourne and Sydney. The following information listed in the table below relates to a number of accounts from the
Accounts $
Accounts payable Telephone expense Services revenue Buildings
Office equipment Cash at Bank Advertising expense
Office materials expense Drawings
Land
Rent expense
Utilities (gas/water, etc.)
96 000
30 285 663 750 650 000
18 000 71 020 30 375
108 000 191 700 870 000
27 000 355 885 137 565
67 500 360 000 60 390 71 910
Required:
-
a) Based on the information provided in the table above, prepare the Income
Statement for EP Lawyers.
-
b) In your own words, explain what the purpose of a statement of comprehensive
income is and who do you think would use it? Justify your answer
Step by step
Solved in 2 steps
- Kelly Pitney began her consulting business, Kelly Consulting, on April 1, 2018. 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: May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, 4,500. 5. Received cash from clients on account, 2,450. 9. Paid cash for a newspaper advertisement, 225. 13. Paid Office Station Co. for part of the debt incurred on April 5, 640. 15. Recorded services provided on account for the period May 115, 9,180. 16. Paid part-time receptionist for two weeks salary including the amount owed on April 30, 750. 17. Recorded cash from cash clients for fees earned during the period May 1-16, 8,360. Record the following transactions on Page 6 of the journal: 20. Purchased supplies on account, 735. 21. Recorded services provided on account for the period May 16-20,4,820. 25. Recorded cash from cash clients for fees earned for the period May 17- 23, 7,900. 27. Received cash from clients on account, 9,520. 28. Paid part-time receptionist for two weeks salary, 750. 30. Paid telephone bill for May, 260. 31. Paid electricity bill for May, 810. 31. Recorded cash from cash clients for fees earned for the period May 26-31, 3,300. 31. Recorded services provided on account for the remainder of May, 2,650. 31. Paid dividends, 10,500. Instructions 1. The cl1art of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial balance as of April 30, 2018, 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, 2018, 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 retained earnings statement, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 8 of d1e journal. (Income Summary is account #34 in d1e 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.Valley Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on July 31, 2019, follows: The following business transactions were completed by Valley Realty during August 2019: Aug. 1. Purchased office supplies on account, 3,150. 2.Paid rent on office for month, 7,200. 3.Received cash from clients on account, 83,900. 5.Paid insurance premiums, 12,000. 9.Returned a portion of the office supplies purchased on August 1, receiving full credit for their cost, 400. Analyzing Transactions Aug. 17. Paid advertising expense, 8,000. 23.Paid creditors on account, 13,750. Enter the following transactions on Page 19 of the two-column journal: 29.Paid miscellaneous expenses, 1,700. 30.Paid automobile expense (including rental charges for an automobile), 2,500. 31.Discovered an error in computing a commission during July; received cash from the salesperson for the overpayment, 2,000. 31.Paid salaries and commissions for the month, 53,000. 31.Recorded revenue earned and billed to clients during the month, 183,500. 31.Purchased land for a future building site for 75,000, paying 7,500 in cash and giving a note payable for the remainder. 31.Withdrew cash for personal use, 1,000. 31.Rented land purchased on August 31 to a local university for use as a parking lot during football season (September, October, and November); received advance payment of 5,000. Instructions 1. Record the August 1 balance of each account in the appropriate balance column of a four-column account, write Balance in the item section, and place a check mark () in the Posting Reference column. 2. Journalize the transactions for August in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance of the ledger as of August 31, 2019. 5. Assume that the August 31 transaction for Cindy Getmans cash withdrawal should have been 10,000. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry. (c) Is this error a transposition or slide?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.
- Elite Realty acts as an agent in buying, selling, renting, and managing real estate. The unadjusted trial balance on March 31, 2019, follows: The following business transactions were completed by Elite Realty during April 2019: Apr. 1. Paid rent on office for month, 6,500. 2.Purchased office supplies on account, 2,300. 5.Paid insurance premiums, 6,000. 10.Received cash from clients on account, 52,300. 15.Purchased land for a future building site for 200,000, paying 30,000 in cash and giving a note payable for the remainder. 17.Paid creditors on account, 6,450. 20.Returned a portion of the office supplies purchased on April 2, receiving full credit for their cost, 325. 23.Paid advertising expense, 4,300. Enter the following transactions on Page 19 of the two-column journal: 27.Discovered an error in computing a commission; received cash from the salesperson for the overpayment, 2,500. 28.Paid automobile expense (including rental charges for an automobile), 1,500. 29.Paid miscellaneous expenses, 1,400. 30.Recorded revenue earned and billed to clients during the month, 57,000. 30.Paid salaries and commissions for the month, 11,900. 30.Withdrew cash for personal use, 4,000. 30.Rented land purchased on April 15 to local merchants association for use as a parking lot in May and June, during a street rebuilding program; received advance payment of 10,000. Instructions 1. Record the April 1, 2019, balance of each account in the appropriate balance column of a four-column account, write Balance in the item section, and place a check mark () in the Posting Reference column. 2. Journalize the transactions for April in a two-column journal beginning on Page 18. Journal entry explanations may be omitted. 3. Post to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance of the ledger as of April 30, 2019. 5. Assume that the April 30 transaction for salaries and commissions should have been 19,100. (a) Why did the unadjusted trial balance in (4) balance? (b) Journalize the correcting entry. (c) Is this error a transposition or slide?The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1.Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Musics checking account. 1.Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1.Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2.Received 1,000 cash from customers on account. 3.On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3.Paid 250 to creditors on account. 4.Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5.Purchased office equipment on account from Office Mart, 7,500. 8.Paid for a newspaper advertisement, 200. 11.Received 1,000 for serving as a disc jockey for a party. 13.Paid 700 to a local audio electronics store for rental of digital recording equipment. 14.Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16.Received 2,000 for serving as a disc jockey for a wedding reception. 18.Purchased supplies on account, 850. July 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22.Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23.Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2019. 27.Paid electric bill, 915. 28.Paid wages of 1,200 to receptionist and part-time assistant. 29.Paid miscellaneous expenses, 540. 30.Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2019. 31.Received 3,000 for serving as a disc jockey for a party. 31.Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31.Withdrew 1,250 cash from PS Music for personal use. PS Musics chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: Instructions 1. Enter the July 1, 2019, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 2019.The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business's operations: July 1. Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Music's checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music: store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 cash from customers on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for SO hours per month for a monthly fee of 3,600. Any additional hours beyond SO will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 to creditors on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 11. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. July 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2019. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2019. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July. 31. Withdrew l,250 cash from PS Music for personal use. PS Music's chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: 11 Cash 3,920 12 Accounts receivable 1,000 14 Supplies 170 15 Prepaid insurance 17 Office Equipment 21 Accounts payable 250 23 Unearned Revenue 31 Peyton smith, Drawing 4,000 32 Fees Earned 500 41 Wages Expense 6,200 50 Office Rent Expense 400 51 Equipment Rent Expense 800 52 Utilities Expense 675 53 Supplies Expense 300 54 music Expense 1,590 55 Advertising Expense 500 56 Supplies Expense 180 59 Miscellaneous Expense 415 Instructions 1.Enter the July 1, 2019, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2.Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3.Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4.Prepare an unadjusted trial balance as of July 31, 2019.
- On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business, 18,000. 4.Paid rent for period of October 4 to end of month, 3,000. 10.Purchased a used truck for 23,750, paying 3,750 cash and giving a note payable for the remainder. 13.Purchased equipment on account, 10,500. 14.Purchased supplies for cash, 2,100. 15.Paid annual premiums on property and casualty insurance, 3,600. 15.Received cash for job completed, 8,950. Enter the following transactions on Page 2 of the two-column journal: 21.Paid creditor a portion of the amount owed for equipment purchased on October 13, 2,000. 24.Recorded jobs completed on account and sent invoices to customers, 14,150. 26.Received an invoice for truck expenses, to be paid in November, 700. 27.Paid utilities expense, 2,240. 27.Paid miscellaneous expenses, 1,100. Oct. 29. Received cash from customers on account, 7,600. 30.Paid wages of employees, 4,800. 31.Withdrew cash for personal use, 3,500. Instructions 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Journal entry explanations may be omitted. 2. Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 2019. 4. Determine the excess of revenues over expenses for October. 5. Can you think of any reason why the amount determined in (4) might not be the net income for October?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.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: May 3. Received cash from clients as an advance payment for services to be provided and recorded it as unearned fees, 4,500. 5. Received cash from clients on account, 2,450. 9. Paid cash for a newspaper advertisement, 225. 13. Paid Office Station Co. for part of the debt incurred on April 5, 640. 15. Provided services on account for the period May 115, 9,180. 16. Paid part-time receptionist for two weeks' salary including the amount owed on April 30, 750. 17. Received cash from cash clients for fees earned during the period May 116, 8,360. Record the following transactions on Page 6 of the journal: 20. Purchased supplies on account, 735. 21. Provided services on account for the period May 1620, 4,820. 25. Received cash from cash clients for fees earned for the period May 1723, 7,900. 27. Received cash from clients on account, 9,520. 28. Paid part-time receptionist for two weeks' salary, 750. 30. Paid telephone bill for May, 260. 31. Paid electricity bill for May, 810. 31. Received cash from cash clients for fees earned for the period May 2631, 3,300. 31. Provided services on account for the remainder of May, 2,650. 31. Kelly withdrew 10,500 for personal use. Instructions 1.The chart of accounts for Kelly Consulting is shown in Exhibit 9, and the post-closing trial 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 two column Journal starting on Page 5 of the journal and using Kelly Consulting's 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. 3Prepare 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 3 1 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 owner's 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.
- Tanner Kerekes had been operating his law practice in Mississauga under the name Tanner Kerekes, Lawyer. The following business transactions took place during the month of May 2019. Identify the accounting characteristic, assumption, or principle that would be applicable to each of the transactions and discuss the effects it would have on the financial statements of Tanner Kerekes, Lawyer. May 1 Kerekes deposited $30,000 cash into the business bank account. May 3 Kerekes completed legal work for a home builder. He charged the builder $5,000, not the $6,000 the work was worth, in order to earn more business from the builder. May 5 The business bought furniture from Ajax Furniture for $8,000, paying $2,000 cash and promising to pay $1,000 per month at the beginning of each month starting June 1, , for six months. Kerekes would like to expense the entire amount to reduce net income for tax reasons. May 10 The business signed a lease to rent additional space at a cost of…On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Jan. 1 Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $40,000. 2 Paid rent on office and equipment for the month, $6,000. 3 Purchased supplies on account, $3,200. 4 Paid creditor on account, $1,750. 5 Earned fees, receiving cash, $18,250. 6 Paid automobile expenses (including rental charge) for month, $1,880, and miscellaneous expenses, $420. 7 Paid office salaries, $5,000. 8 Determined that the cost of supplies used was $1,400. 9 Withdrew cash for personal use, $2,000. Required: 1. Journalize entries for transactions Jan. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles. 2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account…On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: a. Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $40,000. b. Paid rent on office and equipment for the month, $6,000. c. Purchased supplies on account, $3,200. d. Paid creditor on account, $1,750. e. Earned fees, receiving cash, $18,250. f. Paid automobile expenses (including rental charge) for month, $1,880, and miscel- laneous expenses, $420. g. Paid office salaries, $5,000. h. Determined that the cost of supplies used was $1,400. i. Withdrew cash for personal use, $2,000. Instructions 1. Journalize entries for transactions (a) through (i), using the following account titles: Cash; Supplies; Accounts Payable; Sharon Matthews, Capital; Sharon Matthews, Draw- ing; Fees Earned; Rent Expense; Office Salaries Expense; Automobile Expense; Supplies Expense; Miscellaneous Expense. Explanations may be omitted.…