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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

The account balances of Miss Beverly’s Tutoring Service as of June 30, the end of the current fiscal year, are as follows:

images

Required

  1. 1. Data for the adjustments are as follows:
    1. a. Expired or used up insurance, $470.
    2. b. Depreciation expense on equipment, $948.
    3. c. Depreciation expense on the van, $1,490.
    4. d. Salary accrued (earned) since the last payday, $574 (owed and to be paid on the next payday).
    5. e. Supplies remaining as of June 30, $407.

Your instructor may want you to use a work sheet for these adjustments.

  1. 2. Journalize the adjusting entries.
  2. 3. Prepare an income statement.
  3. 4. Prepare a statement of owner’s equity. Assume that there was an additional investment of $3,000 on June 10.
  4. 5. Prepare a balance sheet
  5. 6. Journalize the closing entries using the four steps in the proper sequence.

Check Figure

Net income, $19,567

1.

To determine

Indicate the given adjustments and complete the worksheet for B’s Tutoring Service for the year ended June 30, 20--.

Explanation

Worksheet: Worksheet is an accounting tool that helps accountants to record adjustments and up-date balances required to prepare financial statements. Worksheet is a central place where trial balance, adjustments, adjusted trial balance, income statement, and balance sheet are presented...

2.

To determine

Prepare adjusting journal entries for B’s Tutoring Service for the year ended June 30, 20--.

3.

To determine

Prepare an income statement for B’s Tutoring Service for the year ended June 30, 20--, based on the account balances from worksheet of Part (1).

4.

To determine

Prepare a statement of owners’ equity for B’s Tutoring Service for the year ended June 30, 20--. (Refer to net income computed in Part (3)).

5.

To determine

Prepare a balance sheet for B’s Tutoring Service, based on the account balances from work sheet in Part (1), and capital of the owner from the statement of owners’ equity prepared in Part (4).

6.

To determine

Prepare closing entries.

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