How to find income statement for the month ended September 30,2021 8:45CaseBW Travel and Tours is a travel agency that offers international and local travel packages. The company is ownedand operated by Bryson Woods. The closing balances at the end of August 2021 and the chart of accounts areshown below.AssetsCashAccounts ReceivablePrepaid InsuranceEquipmentAccumulated DepreciationTotal AssetsASSETSCashAccounts ReceivablePrepaid InsuranceEquipmentAccumulated DepreciationpomocLIABILITIESAccounts PayableAccount DescriptionSept 1Sept 1Sept 1Sept 2Sept 5Sept 11Sept 15Sept 18Sept 20Sept 23Sept 26Sept 28Sept 29Sept 30Sept 30BW Travel and ToursBalance Sheet.As at August 31, 2021Liabilities$14,230 Accounts Payable$8,520 Unearned RevenueSo Bank Loan$65,800-$9,600 Total Liabilities$52,900Woods Capital$26,050$78.950 Total Liabilities & Owners' Equity $78,950Account DescriptionAccount #101105110120125200205210Interest PayableSalary PayableUnearned RevenueBank LoanOWNER'S EQUITYWoods CapitalWoods WithdrawalsIncome SummaryFor the month of September 2021, BW Travel and Tours had the following transactions:Bryson invested $15,000 cash and equipment valued at $12,500 into the business.Prepaid $4,500 for insurance for one year.215220REVENUEService RevenueEXPENSESAdvertising ExpenseDepreciation ExpenseInsurance ExpenseInterest ExpenseSalaries ExpenseTelephone Expense300310315$11,700$16,200$25,000Travel ExpenseRent ExpensePaid $1,950 cash for September's rent.Provided travel package to group of travellers; they paid $22,500 now and will pay$4,500 later.Recorded travel expenses for $9,100 to be paid next month.Purchased equipment with $13,000 cash.Paid $5,850 cash to reduce the balance of accounts payable.Received $4,260 cash from customers for the travel services provided last month.Received a telephone bill for $880 which will be paid next month.LTEPaid $833 cash for the bank loan which included $625 principle and $208 interest.Received a loan from the bank for $20,000Note: This amount is due in 2 years plus accrued interest at 10%Account400Paid $4,150 cash for employee's salaries.Received $26,700 cash in advance from travellers for travel services to be provided nextmonth.Paid $2,530 advertising expense for the promotion of the travel and tours in the monthof September.The owner withdrew $6,550 cash for personal use.500510515520545550555560 8:45At the end of September, the following adjustment had to be journalized to properly report the balances of tcompany's accounts:Sept 30Sept 30Sept 30$31,560 of the balance of unearned revenue, still remains unearned.BW Travel and Tours billed a group of travellers for additonal travel services. Thispackage is amounting to $8,200. They agreed to pay next month.has beenOne month of prepaid insurance worth $375 has been used.Monthly depreciation on the equipment was $1,270.Accrued salary expense of $2,075 for an employee.LTEThe bank loan is payable over 6 years and $625 monthly payment.Required:a) Enter the opening balances from the August 2021 balance sheet into the general ledger accounts.b) Prepare the journal entries for the month of September and post them to the appropriate general ledgeraccounts.c) Create the trial balance in the worksheet, and then complete the remaining section of the worksheet.d) Prepare the journal entries for the adjustments and post them to the appropriate general ledger accounts.e) Create the income statement, statement of owner's equity and the classified balance sheet.f) Prepare the journal entries to close t e books for the month of September 2021 (use the income summaryaccount), and post the journal entries to the appropriate general ledger accounts.g) Create the post-closing trial balance.

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Description: How to find income statement for the month ended September 30,2021 8:45CaseBW Travel and Tours is a travel agency that offers international and local travel packages. The company is ownedand operated by Bryson Woods. The closing balances at the end o

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How to find income statement for the month ended September 30,2021

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 32BE: Brief Exercise 3-32 Adjusting Entries-Deferrals Tyndal Company had the following items that required...

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(Appendix 21.1) Comprehensive The following are Adair Companys December 31, 2018, post-closing trial balance and the December 31, 2019, adjusted trial balance: A review of the accounting records reveals the following additional information for 2019: Investments in bonds to be held to maturity were purchased at year-end for 8,600. A building was purchased for 28,000. A note payable was issued for 9,000. Common stock was issued for 14,500. Dividends of 6,500 were declared and paid. Required: 1. Using the direct method for operating cash flows, prepare a spreadsheet to support the 2019 statement of cash flows for Adair. 2. Prepare the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
Problem 2-62B Comprehensive Problem Mulberry Services sells electronic data processing services to firms too Email to own their own computing equipment. Mulberry had the following amounts and amount balances as of January 1, 2019: During 2019, the following transactions occurred (the events described below are aggregations of many individual events): During 2019, Mulberry sold $690,000 of computing services, all on credit. Mulberry collected $570,000 from the credit sales in Transaction a and an additional $129,000 from the accounts receivable outstanding at the beginning of the year. Mulberry paid the interest payable of $8,000. A Wages of $379,000 were paid in cash. Repairs and maintenance of $9,000 were incurred and paid. The prepaid rent at the beginning of the year was used in 2019. In addition, $28,000 of computer rental costs were incurred and paid. There is no prepaid rent or rent payable at year-end. Mulberry purchased computer paper for $13,000 cash in late December. None of the paper was used by year-end. Advertising expense of $26,000 was incurred and paid. Income tax of $10,300 was incurred and paid in 2019. Interest of $5,000 was paid on the long-term loan. (Continued) Required: 1. Establish a ledger for the accounts listed above and enter the beginning balances. Use a chart of accounts to order the ledger accounts. 2. Analyze each transaction, Journalize as appropriate. (Note: Ignore the date because these events are aggregations of individual events.) 3. Post your journal entries to T-accounts, Add additional T-accounts when needed. 4. Use the ending balances in the T-accounts to prepare a trial balance
Exercise 3-61 Preparation of a Worksheet (Appendix 3A) Unadjusted account balances at December 31, 2019, for Rapisarda Company are as follows: The following data are not yet recorded: Depreciation on the equipment is $18,350. Unrecorded wages owed at December 31 , 2019: $4,680. Prepaid rent at December 3 1 , 2019: $9,240. Income taxes expense: $5,463. Required: Prepare a completed worksheet for Rapisarda Company.
Ledger accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet The unadjusted trial balance of Recessive Interiors at January 31, 2019, the end of the year, follows: The data needed to determine year-end adjustments are as follows: a. Supplies on hand at January 31 are 2,850. b. Insurance premiums expired during the year are 3,150. c. Depreciation of equipment during the year is 5,250. d. Depreciation of trucks during the year is 4,000. e. Wages accrued but not paid at January 31 are 900. Instructions 1. For each account listed in the unadjusted trial balance, enter the balance in the appropriate Balance column of a four-column account and place a check mark () in the Posting Reference column. 2. (Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (3) as needed. 3. Journalize and post the adjusting entries, inserting balances in the accounts affected. a. Record the adjusting entries on Page 26 of the journal. The following additional accounts from Recessive Interiors' chart of accounts should be used: Wages Payable, 22; Depreciation ExpenseEquipment, 54; Supplies Expense, 55; Depreciation ExpenseTrucks, 56; Insurance Expense, 57. 4. Prepare an adjusted trial balance. 5. Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet. 6. Journalize and post the closing entries. Record the closing entries on Page 27 of the journal. Indicate closed accounts by inserting a line in both Balance columns opposite the closing entry. 7. Prepare a post-closing trial balance.
Case 2-68 Accounting for Partially Completed Events: 3 Prelude to Chapter 3 Ehrlich Smith. the owner of The Shoe Bone has asked you to help him understand the proper way to account for certain accounting items as he prepares his 2019 financial statements. Smith has provided the following information and observations: (Continued) a. A 3-year fire insurance policy was purchased on 2019, for $2,400. Smith believes that a part of the cost of the insurance policy should be allocated to each period that benefits from its coverage. b. The store building was purchased for 580,000 in January 2011. Smith expected then (as he does now) that the building will be serviceable as a shoe store for 20 years from the date of purchase. In 2011, Smith estimated that he could sell the property for $6,000 at the end of its serviceable life. He feels that each period should bear some portion of the cost of this long-lived asset that is slowly being consumed. c. The Shoe Box borrowed 520300 on a 1-year, 8% note that is due on September 1 next year) Smith notes that $21,600 cash will be required to repay the note at maturity. The $1,600 difference is, he feels, a cost of using the loaned funds and should be spread over the periods that benefit from the use of' the loan funds; Required: Explain what Smith is trying to accomplish with the three items. Are his objectives supported by the concepts that underlie accounting?
T accounts, adjusting entries, financial statements, and closing entries; optional end-of-period spreadsheet The unadjusted trial balance of Epicenter Laundry at June 30, 2019, the end of the fiscal year, follows: Epicenter Laundry Unadjusted Trial Balance June 30,2019 Debit Balances Credit Balances Cash 11,000 Laundry Supplies 21,500 Prepaid Insurance 9,600 Laundry Equipment 232,600 Accumulated Depreciation 125,400 Accounts Payable 11,800 Sophie Perez, Capital 105,600 Sophie Perez, Drawing 10,000 Laundry Revenue 232,200 Wages Expense 125,200 Rent Expense 40,000 Utilities Expense 19,700 Miscellaneous Expense 5,400 475,000 475,000 The data needed to determine year-end adjustments are as follows: a.Laundry supplies on hand at June 30 are 3,600. b.Insurance premiums expired during the year are 5,700. c.Depreciation of laundry equipment during the year is 6,500. d.Wages accrued but not paid at June 30 are 1,100. Instructions 1.For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as "June 30 Bal." In addition, add T accounts for Wages Payable, Depreciation Expense, Laundry Supplies Expense, and Insurance Expense. 2.(Optional) Enter the unadjusted trial balance on an end-of-period spreadsheet and complete the spreadsheet. Add the accounts listed in part (1) as needed. 3.Journalize and post the adjusting entries. Identify the adjustments as "Adj." and the new balances as "Adj. Bal." 4.Prepare an adjusted trial balance. 5.Prepare an income statement, a statement of owner's equity (no additional investments were made during the year), and a balance sheet. 6.Journalize and post the closing entries. Identify the closing entries as "Clos." 7.Prepare a post-closing trial balance.