Problem 1: Kay Travel was organized on September 1, 2016. Assume that the accounts are closed and financial statements are prepared each month. The company occupies rented office space but owns office equipment estimated to have a useful life of 10 years from date of acquisition, September 1, 2016. The unadjusted trial balance for Kay at November 30, 2016 is shown below:
Problem 1: Kay Travel was organized on September 1, 2016. Assume that the accounts are closed and financial statements are prepared each month. The company occupies rented office space but owns office equipment estimated to have a useful life of 10 years from date of acquisition, September 1, 2016. The unadjusted trial balance for Kay at November 30, 2016 is shown below:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 1: Kay Travel was organized on September 1, 2016. Assume that the accounts are closed and financial statements are prepared each month. The company occupies rented office space but owns office equipment estimated to have a useful life of 10 years from date of acquisition, September 1, 2016. The unadjusted
Transcribed Image Text:500
Kay, Withdrawal
4,220
Service Revenue
800
Advertising Expense
Salaries Expense
3,600
770
Rent Expense
13,430
13,430
Additional Information: The rent expense amounting to PHP770
covers rental for the month of November and December 2016
Instructions:
1. Prepare the adjusting entries necessary for the above problem
2. Prepare an adjusted trial balance
3. Prepare an income statement ending November 30, 2016 4.
Prepare closing entries
Transcribed Image Text:23/25 O
105%
income statement
Directions: Write your answers in your notebook.
Problem 1: Kay Travel was organized on September 1, 2016.
Assume, that the accounts are closed and financial statements are
prepared each month. The company occupies rented office space but
owns office equipment estimated to have a useful life of 10 years from
date of acquisition, September 1, 2016. The unadjusted trial balance
for Kay at November 30, 2016 is shown below:
Unadjusted Trial Balance
Account Title and Explanation
Debit
Credit
Cash
1,750
Accounts Receivable
1,210
Office Equipment
4,800
Accum. Deprn-Off Eqpt
80
Accounts Payable
1,640
7,490
Kay, Capital
Kay, Withdrawal
50
.
Senvica Revenue
4.220
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