What are the steps to complete the T-account for each transaction while making use of the each account balance provided in the first table? Problem#9. Required information[The following information applies to the questions displayed below.] At January 1 (beginning of its fiscal year), Conover, Inc., a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share):       Cash$1,990Accounts payable$300Short-term investments 500Unearned revenue 1,410Accounts receivable 3,660Salaries Payable 960Supplies 240Short-term note payable 870Prepaid expenses 4,810Common stock ($1 par value) 140Office equipment 1,620Additional paid-in capital 6,650Accumulated depreciation-office equipment* (390)Retained earnings 2,100 *This account has a credit balance representing the portion of the cost of the equipment used in the past. Received $9,590 cash for consulting services rendered.Issued 28 additional shares of common stock at a market price of $165 per share.Purchased $730 of office equipment, paying 40 percent in cash and owing the rest on a short-term note.Received $980 from clients for consulting services to be performed in the next year.Bought $560 of supplies on account.Incurred and paid $1,890 in utilities for the current year.Consulted for clients in the current year for fees totaling $1,710, due from clients in the next year.Received $3,070 from clients paying on their accounts.Incurred $6,300 in salaries in the current year, paying $5,390 and owing the rest (to be paid next year).Purchased $1,320 in short-term investments and paid $890 for insurance coverage beginning in the next fiscal year.Received $55 in interest revenue earned in the current year on short-term investments.Required:Enter the following transactions for the current year into the T-accounts, using the letter of each transaction as the reference. (Enter your answer in thousands, not in dollars. Round your final answer to nearest whole dollar)         Cash Short-term InvestmentsBeg. Bal.    Beg. Bal.                          End. Bal.0               End. Bal.0      Accounts Receivable SuppliesBeg. Bal.    Beg. Bal.                     End. Bal.0   End. Bal.0           Prepaid Expenses Office EquipmentBeg. Bal.    Beg. Bal.                     End. Bal.0   End. Bal.0           Accumulated Depreciation Accounts PayableBeg. Bal.    Beg. Bal.                     End. Bal. 0  End. Bal. 0          Unearned Revenue Salaries PayableBeg. Bal.    Beg. Bal.                     End. Bal. 0  End. Bal. 0          Short-term Note Payable Common StockBeg. Bal.    Beg. Bal.                     End. Bal. 0  End. Bal. 0          Additional Paid-in Capital Retained EarningsBeg. Bal.    Beg. Bal.                     End. Bal. 0  End. Bal. 0          Consulting Fees Revenue Interest RevenueBeg. Bal.    Beg. Bal.                     End. Bal.0   End. Bal.0           Salaries Expense Utilites ExpenseBeg. Bal.    Beg. Bal.                     End. Bal.0   End. Bal.0

Question
Asked Sep 24, 2019
116 views

What are the steps to complete the T-account for each transaction while making use of the each account balance provided in the first table?

 

Problem#9. Required information

[The following information applies to the questions displayed below.]

 

At January 1 (beginning of its fiscal year), Conover, Inc., a financial services consulting firm, reported the following account balances (in thousands, except for par and market value per share):

 

 

 

 

 

 

 

Cash

$

1,990

Accounts payable

$

300

Short-term investments

 

500

Unearned revenue

 

1,410

Accounts receivable

 

3,660

Salaries Payable

 

960

Supplies

 

240

Short-term note payable

 

870

Prepaid expenses

 

4,810

Common stock ($1 par value)

 

140

Office equipment

 

1,620

Additional paid-in capital

 

6,650

Accumulated depreciation-office equipment*

 

(390)

Retained earnings

 

2,100

 

*This account has a credit balance representing the portion of the cost of the equipment used in the past.

 

  1. Received $9,590 cash for consulting services rendered.
  2. Issued 28 additional shares of common stock at a market price of $165 per share.
  3. Purchased $730 of office equipment, paying 40 percent in cash and owing the rest on a short-term note.
  4. Received $980 from clients for consulting services to be performed in the next year.
  5. Bought $560 of supplies on account.
  6. Incurred and paid $1,890 in utilities for the current year.
  7. Consulted for clients in the current year for fees totaling $1,710, due from clients in the next year.
  8. Received $3,070 from clients paying on their accounts.
  9. Incurred $6,300 in salaries in the current year, paying $5,390 and owing the rest (to be paid next year).
  10. Purchased $1,320 in short-term investments and paid $890 for insurance coverage beginning in the next fiscal year.
  11. Received $55 in interest revenue earned in the current year on short-term investments.

Required:

  1. Enter the following transactions for the current year into the T-accounts, using the letter of each transaction as the reference. (Enter your answer in thousands, not in dollars. Round your final answer to nearest whole dollar)
 

 

 

 

 

 

 

 

 

Cash

 

Short-term Investments

Beg. Bal.

       

Beg. Bal.

     
                 
                 
         

End. Bal.

0

   
         
       
       

End. Bal.

0

   
       

Accounts Receivable

 

Supplies

Beg. Bal.

       

Beg. Bal.

     
                 
                 

End. Bal.

0

     

End. Bal.

0

   
                 

Prepaid Expenses

 

Office Equipment

Beg. Bal.

       

Beg. Bal.

     
                 
                 

End. Bal.

0

     

End. Bal.

0

   
                 

Accumulated Depreciation

 

Accounts Payable

Beg. Bal.

       

Beg. Bal.

     
                 
                 

End. Bal.

 

0

   

End. Bal.

 

0

 
                 

Unearned Revenue

 

Salaries Payable

Beg. Bal.

       

Beg. Bal.

     
                 
                 

End. Bal.

 

0

   

End. Bal.

 

0

 
                 

Short-term Note Payable

 

Common Stock

Beg. Bal.

       

Beg. Bal.

     
                 
                 

End. Bal.

 

0

   

End. Bal.

 

0

 
                 

Additional Paid-in Capital

 

Retained Earnings

Beg. Bal.

       

Beg. Bal.

     
                 
                 

End. Bal.

 

0

   

End. Bal.

 

0

 
                 

Consulting Fees Revenue

 

Interest Revenue

Beg. Bal.

       

Beg. Bal.

     
                 
                 

End. Bal.

0

     

End. Bal.

0

   
                 

Salaries Expense

 

Utilites Expense

Beg. Bal.

       

Beg. Bal.

     
                 
                 

End. Bal.

0

     

End. Bal.

0

   

 

 

 

check_circle

Expert Answer

Step 1

Prepare T-accounts for the transactions as shown below:

help_outline

Image Transcriptionclose

Cash Short-term Investments $500 End. Bal. $1,320 $1,820 $1,820 $1,820 Beg. Bal Beg. bal $1,990 $292 3 $9,590 $3,070 $1,890 $5,390 $1,320 1 6 10 $1.820 8 9 $55 Beg. Bal 11 10 $890 10 End. Bal $4.923 $14,705 Accounts receivables $3,660 $1,710 End. Bal $5,370 $2,300 $3,070 $2,300 $5,370 $14,705 Beg. Bal 8 $4,923 Beg. bal 7 Beg. Bal Prepaid expenses $4,810 End. Bal Supplies $800 $5,700 Beg. Bal $240 End. Bal. Beg. Bal $560 $890 5 10 $800 $800 $5,700 $5,700 $5,700 Beg Bal $800 Beg. Bal

fullscreen
Step 2

Continuation of T...

help_outline

Image Transcriptionclose

Office equipment $1,620 End. Bal $730 $2,350 $2,350 Accumulated depreciation $2,350 $390 Beg. Bal Beg. Bal $390 3 $2,350 Beg. Bal Accounts payable $860 Beg. Bal Unearned revenue End. Bal $300 $560 End. Bal $2,390 Beg. Bal. $1,410 $980 $2,390 $2,390 5 4 $2,390 Beg. Bal $860 $860 $860 Beg. Bal. Salaries payable $1,870 Beg. Bal Short term notes payable $1,308 Beg. Bal End. Bal $960 $910 $1,870 $1,870 End. Bal $870 $438 9 3 $1,870 $1,308 $1,308 $1,308

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: In general terms, what are the differences in the rules for determining who is a qualifying child an...

A: A taxpayer can claim deductions on their federal income tax return for their dependants. There are 2...

question_answer

Q: Hired a new president to start January 1 of next year. The contract was for $95,000 for each full ye...

A: Journal entry is recording of financial transactions which occur during the given period. Anticipate...

question_answer

Q: Leigh Meadows and Byron Leef formed a partnership in which the partnership agreement provided for sa...

A: Partnership Accounting- The net income of Partnership is distributed among the partners in their pro...

question_answer

Q: Journalize the following adjustments. (Credit account titles are automatically indented when the amo...

A: Definition of Adjustment Entries:Adjustment Journal Entries are those entries which are made at the ...

question_answer

Q: Review the chart of accounts in Ch 2.  In Excel, create a four column chart of accounts for a fictit...

A: 4 Column chart of account for a service company – Assets

question_answer

Q: I need help on this problem.   Pearce Enterprises reported the following information for the past ye...

A: Free Cash Flow = Cash from operations – Capital Expenditure                            = Net Income ...

question_answer

Q: How do I calculate the taxpayer's 2019 qualifying business income deduction for a qualified trade or...

A: Qualified business income deduction is the amount that needs to be deducted in order to find taxpaye...

question_answer

Q: Operating Leverage Westminster Co. reports the following data: Sales $875,000 Variable costs 42...

A: Operating leverage: Operating leverage is a financial ratio which measures the extent to which the o...

question_answer

Q: P 17-4 Installment liquidation The partnership of Gil, Hal, Ian, and Joe is preparing to liquidate. ...

A: Liquidation is a process where the company accounts are closed by selling off the assets of company,...