Create a trial balance and income statement, Financial Accounting

Create a Trial Balance and Income Statement

Cash                                     $18,470   
A/R                                         14,333                           
Advertising Supplies                   3,998
Prepaid Insurance                     23,137
Equipment                              135,495
A/D – Equipment                     $19,207
Accounts Payable                       11,998
Unearned Service Revenue          14,336
Notes Payable                             62,679
Common Stock                            67,546
Retained Earnings                         19,667   
Totals                                         $195,433              

During the month of July, the following occurred:
July 2    received $8,127 of the prior month’s receivables
July 3    paid $5,220 of the prior month’s accounts payable and paid $3,200 for July rent
July 5    earned $6,736 worth of the prior month’s unearned revenue
July 6    provided a service and billed the client $3,376
July 9    bought advertising supplies for $2,217 on account
July 10    received $4,200 for a service to be provided
July 11    provided a service and billed the client $7,366
July 12    collected $9,127 of receivables
July 13    paid $7,500 of the notes payable
July 16    bought advertising supplies for $1,189 cash
July 18    provided a service and billed the client $4,934
July 20    received $2,700 for a service to be provided   
July 23    paid $4,223 travel expense (all for July travel)
July 24    paid $2,400 of accounts payable
July 25    paid temporary employees $3,356 of wages (all for July work)
July 26    paid $5,000 of the notes payable
July 27    paid the shareholder a $3,000 dividend
July 30    provided a service fully earning the $4,200 from July 10
July 31    paid the shareholder a $4,500 dividend


Required – Part A

Part A1    provide general journal entries in general journal form for the above transactions
Part A2    create a trial balance at July 31 fully taking into account the beginning balances and thegeneral journal entries recorded in part A1 (t-accounts are recommended for key accounts; do not hand them in t-accounts)


Adjusting Entry Information
a.    the insurance expires at a rate of $1,218 per month
b.    a month-end count reveals about $2,400 of advertising supplies remain on-hand
c.    annual depreciation (straight-line is used) is $19,356
d.    a thorough analysis reveals only $3,200 of the unearned revenue is not yet earned at month-end
e.    the interest on the N/P for the month is $418 (hint: don’t increase the principal of the note)
f.    estimated expenses for the month are $2,100 utilities and $800 telephone
g.    a bank reconciliation reveals that a $4,000 payment from a client (A/R) was not recorded

Required – Part B

Part B1    provide adjusting journal entries, in general journal form, for the above
Part B2    create an adjusted trial balance
Part B3    create an income statement and a statement of retained earnings for the month of July
Part B4    create a balance sheet at 7/31/12
Part B5    provide closing entries in general journal form

Posted Date: 2/15/2013 2:36:49 AM | Location : United States







Related Discussions:- Create a trial balance and income statement, Assignment Help, Ask Question on Create a trial balance and income statement, Get Answer, Expert's Help, Create a trial balance and income statement Discussions

Write discussion on Create a trial balance and income statement
Your posts are moderated
Related Questions
Can you do the attacched quections by Monday?

Find the heading Goodwill. What type of an asset is goodwill? Does Amazon write off this asset? Explain what the company does

Consequences of adjudication The consequences of the making of the adjudication order are: 1. The order must be advertised in the gazette and a local paper; 2. The ownershi

Q. Design a organisational strategy? The objectives to which organisational approach relates depend on the relative power of different stakeholders associated with the company

How to prepare a bond amortization sheet

Q. What is fair value in stock market? Fair value - Amount at which an asset (or liability) could be bought (or incurred) or sold (or settled) in a current transaction between

Notice an Rs.50, 000 investment in a one year fixed deposit and rolled over yearly for the subsequently two years.  The interest rate for the primary year is 5 percent  yearly and

Question 1 a. Contractual liability may be discharged in certain circumstances. Discuss. b. "An aggrieved party in a breach of contract is entitled to claim for damages"

Jaedan Industries has the following account balances as of December 31, 2010.  The firm's dividend payout ratio is 25% and the tax rate is 34%.  The firm's stock price on December

Prepare an income statement and statement of owner's equity  (month ended Mar,31 1995) Auto remair fee earned            37,300 Salaries Expense                    11500 Repair par