Chapter 3, Problem 3PSA

Required: Prepare the following, December 31, 2019, financial statements: Income Statement Retained Earnings Statement Balance Sheet December 31, 2019, adjusted trial balance is provided below. Prepare the fiscal year-end closing entries. a. Prepare the January 1, 2020 opening trial balance. b. Prepare the journal entries for the first six months of 2020. provided is a summary of activities accounting entries that need to be prepared  2. The owners would like to know the current (as of 6/30/20) cash and the inventory balance. They would like you to provide a “T” account showing the activity in each account.

The following selected accounts and their current balances appear in the ledger of Kanpur Co. for the fiscal year ended June 30, 2019: 1. Prepare a multiple-step income statement.2. Prepare a statement of owner’s equity.3. Prepare a balance sheet, assuming that the current portion of the note payable is$7,000.4. Briefly explain how multiple-step and single-step income statements differ.

Information to prepare adjusting journal entries The following information relates to Gatsby, Inc. as of December 31 of the current year. The company uses the calendar year as its annual reporting period and the Accrual Method of Accounting. Prepaid and unearned items are recorded as assets and liabilities, respectively. Prepare all necessary adjusting journal entries and post to the T-accounts. 1 The company's weekly payroll is $3,000 and is paid each Friday for a five-day work week. Assume December 31st falls on a Thursday, but the employees will not be paid their wages until Friday, January 3rd. 2 Eighteen months earlier, on July 1st the company purchased equipment that cost $160,000. Its useful life is predicted to be ten years, at which time the equipment is expected to have a zero salvage/residual value. Gatsby, Inc. uses the straight-line depreciation method. Deprecation has NOT been recorded for this year. 3 On September 1st of the current year Gatsby, Inc. was paid $60,000 in…

B. ADJUSTING ENTRIES: More Review Show (MRS) prepares quarterly statements. The bookkeeper presented to you the records and you found out the following account balances before adjustments for the quarter ended March 31, 200B: 1. The notes receivable balance of P180,000 as of March 31, 200B consisted of a 60-day 12% note for P120,000 dated February 14, 200B and a 30-day 6% note for P60,000 dated March 16, 200B 2. The balance of the prepaid insurance account of P22,000 represents a one-year policy contracted last November 1, 200A for P10,000 and two year policy contracted last July 1, 200Å for P12,000 3. The balance of the prepaid rent account of P50,000 pertains to advance rent paid last December 1, 200A six months effective on the same date. 4. The rate per day of each of the four shop workers is P350. MRS pays the weekly salaries of its workers every Monday of the following week ( a week consist of five days from Monday to Friday). March 31, 200B falls on Thursday. 5. Mortgage notes…

Journalize the adjusting entry for each of the following accrued expenses at the end of the current year:a. Product warranty cost, $26,800.b. Interest on the 19 remaining notes owed to Gallardo Co.

On November 30, 2019, Davis Company and the following account balances: 1. Prepare general journal entries to record preceding transactions. 2. Post to general ledger T-accou11ts. 3. Prepare a year-end trial balance on a worksheet and complete the worksheet using the following information: (a) accrued salaries at year-end total $1,200; (b ) for simplicity, the building and equipment are being depreciated using the stright-line method over an estimated life of 20 years with no residual all c) supplies on hand at the end of the year total $630; (d ) bad debts expense for the year totals $830; and (e ) the income tax rate is 30%; income taxes are payable in the first quarter of 2020. 4. Prepare company's financial statements for 2019 . 5. Prepare 2019 (a) adjusting and (b) closing entries in the general journal.

The following are some of the transactions made by Luigi Gomez Cleaners during 2020: Apr. 1 Acquired cleaning supplies in the amount of P260,000. A count of the supplies on Dec. 31, 2020 Aug. 1 Received P360,000 from Cebu Manpower for cleaning janitorial uniforms over the next 3 years. Nov. 1 Paid P240,000 for annual rent. Required: 1. Assume that Gomez records these transactions using the following accounts, record the adjusting entries on Dec. 31, 2020: a. Office Supplies b. Prepaid Rent c. Unearned Cleaning Revenues 2. Now, assume that Gomez records these transactions using the following accounts, what will be the adjusting entries on Dec. 31, 2020? a. Office Supplies Expense b. Rent Expense c. Cleaning Revenues 3. If Gomez were to use reversing entries, which set of entries, (1) or (2), would have to be reversed? Why?

Prepare the adjusting entries on December 31, 2019, the end of the annual accounting period,on the following independent data. Show your computations after each entry.1. The Insurance Expense account had a debit balance on December 31, 2019 of P 36,000 representing premium for a 2-year fire insurance policy effective October 1, 2019.2. Rent Income was credited for P 18,000 on November 1, 2019 representing nine months rent collected in advance.3. Equipment per general ledger on December 31, 2019 shows a balance of P 372,000. Equipment acquired during the year was P 52,000 on April 1, 2019. All equipment is to be depreciated at the rate of 25% per annum.4. As of December 31, 2019, commissions already earned but not yet collected amounted to P 48,000.5. Office Supplies costing P 9,000 bought during the period was debited to the Office Supplies account. Of the amount, P 5,000 were consumed during the year.6. Unearned Service Fees account showed a credit balance of P 80,000 pergeneral…

Prepare year-end adjusting journal entries for M&R Company as of December 31 for each of the following separate cases. Entries can draw from the following partial chart of accounts: Cash; Accounts Receivable; Interest Receivable; Equipment; Wages Payable; Salary Payable; Interest Payable; Lawn Services Payable; Unearned Revenue; Revenue; Interest Revenue; Wages Expense; Salary Expense; Supplies Expense; Lawn Services Expense; and Interest Expense. a. M&R Company provided $2,000 in services to customers in December. Those customers are expected to pay the company sometime in January following the company’s year-end. b. Wage expenses of $1,000 have been incurred but are not paid as of December 31. c. M&R Company has a $5,000 bank loan and has incurred (but not recorded) 8% interest expense of $400 for the year ended December 31. The company will pay the $400 interest in cash on January 2 following the company’s year-end. d. M&R Company hired a firm that provided lawn…