PROBLEM 1Emily Cruz, completed the transactions below for the month of December,2021. The company uses the following charts of accounts:CashAccounts ReceivableOffice SuppliesOffice EquipmentFurniture & FixturesAccumulated Depreciation -office EquipmentAccumulated Depreciation -Furniture & FixturesAccounts PayableSalary PayableUnearned RevenueTransactions:December224Emily Cruz, CapitalEmily Cruz, WithdrawalsFee RevenueRent Expense5Utilities ExpenseSalary ExpenseDepreciation expenseEquipmentDepreciation Expense& FixturesSupplies ExpenseOfficeFurniturePaid cash for an Apple computer, 30,000.00. The3 computer is expected to remain in service for 5 years.Invested 120, 000.00 to start an accounting practice,Emily Cruz, Accountant.Paid monthly office rent, 5, 000.00.Purchased office furniture on account, 36,000.00. Thefurniture should last for five years.Purchased supplies on account, 3,000.00 Performed tax service for a client and received cashfor the full amount of 8, 000.00912 Paid utility expenses, 2.000.00Performed consulting services for a client on account.18 17,000.00Received 9,000.00 in advance tax work to be performed21 evenly over the next 30 days.Hired a secretary to be paid 15, 000.00 on the 20thday of each month.21Collected 6, 000.00 from the consulting client onDecember 18.2830 Withdrew 16, 000.00 for personal use.Required:1. Journalize the transactions.2. Post to the T-accounts (General Ledger), keying all items bytransactions.3. Prepare an unadjusted trial balance on December 31. Set upcolumns for the adjustments for the adjusted trial balance.4. Prepare the adjusting entries for December 31 from the followinginformation:a. Accrued service revenue, 4,000.00b. Earned a portion of service collected in advance on December21.c. Supplies on hand, 1, 000.00d. Depreciation expense for Office Equipment; depreciationexpense for Furniture and fixtures..e. Accrued expense for secretary salary..5. Prepare the Adjusted Trial Balance, Income Statement, andStatement of Financial Position.

"Since the question has multiple sub-parts, we will solve only the first three sub-parts as per the…

Performed tax service for a client and received cash 9 for the full amount of 8, 000.00 12 Paid utility expenses, 2.000.00 Performed consulting services for a client on account. 18 17,000.00 Received 9,000.00 in advance tax work to be performed 21 evenly over the next 30 days. Hired a secretary to be paid 15, 000.00 on the 20th day of each month. 21 Collected 6, 000.00 from the consulting client on 28 December 18. 30 Withdrew 16, 000.00 for personal use. Required: 1. Journalize the transactions. 2. Post to the T-accounts (General Ledger), keying all items by transactions. 3. Prepare an unadjusted trial balance on December 31. Set up columns for the adjustments for the adjusted trial balance. 4. Prepare the adjusting entries for December 31 from the following information: a. Accrued service revenue, 4.000.00 b. Earned a portion of service collected in advance on December 21. c. Supplies on hand, 1, 000.00 d. Depreciation expense for Office Equipment; depreciation expense for Furniture and fixtures. e. Accrued expense for secretary salary. 5. Prepare the Adjusted Trial Balance, Income Statement, and Statement of Financial Position.

Performed tax service for a client and received cash 9 for the full amount of 8, 000.00 12 Paid utility expenses, 2.000.00 Performed consulting services for a client on account. 18 17,000.00 Received 9,000.00 in advance tax work to be performed 21 evenly over the next 30 days. Hired a secretary to be paid 15, 000.00 on the 20th day of each month. 21 Collected 6, 000.00 from the consulting client on 28 December 18. 30 Withdrew 16, 000.00 for personal use. Required: 1. Journalize the transactions. 2. Post to the T-accounts (General Ledger), keying all items by transactions. 3. Prepare an unadjusted trial balance on December 31. Set up columns for the adjustments for the adjusted trial balance. 4. Prepare the adjusting entries for December 31 from the following information: a. Accrued service revenue, 4.000.00 b. Earned a portion of service collected in advance on December 21. c. Supplies on hand, 1, 000.00 d. Depreciation expense for Office Equipment; depreciation expense for Furniture and fixtures. e. Accrued expense for secretary salary. 5. Prepare the Adjusted Trial Balance, Income Statement, and Statement of Financial Position.

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 6AP

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