Reference no: EM131769300
On May 1, Nimbus Flying School, a company that provides ? ying lessons, was started with an investment of $45,000 cash in the business. Following are the assets and liabilities of the company on May 31, 2015, and the revenues and expenses for the month of May. Cash $ 4,650 Notes Payable $28,000 Accounts Receivable 7,400 Rent Expense 900 Equipment 64,000 Maintenance and Service Revenue 6,800 Repairs Expense 350 Advertising Expense 500 Gasoline Expense 2,500 Accounts Payable 1,400 Utilities Expense 400 No additional investments were made in May, but the company paid dividends of $500 during the month. Instructions (a) Prepare an income statement and a retained earnings statement for the month of May and a balance sheet at May 31. (b) Prepare an income statement and a retained earnings statement for May assuming the following data are not included above: (1) $900 worth of services were performed and billed but not collected at May 31, and (2) $1,500 of gasoline expense was incurred but not paid.
Tom Zopf owns and manages a computer repair service, which had the following trial balance on December 31, 2014 (the end of its ? scal year).
TABLETTE REPAIR SERVICE, INC. Trial Balance December 31, 2014
Debit Credit Cash $ 8,000 Accounts Receivable 15,000 Supplies 11,000 Prepaid Rent 3,000 Equipment 21,000 Accounts Payable $17,000
Common Stock 30,000 Retained Earnings 11,000 $58,000 $58,000
Summarized transactions for January 2015 were as follows. 1. Advertising costs, paid in cash, $1,000. 2. Additional supplies acquired on account $3,600. 3. Miscellaneous expenses, paid in cash, $1,700. 4. Cash collected from customers in payment of accounts receivable $13,000. 5. Cash paid to creditors for accounts payable due $14,400.
Journalize transactions, post, and prepare a trial balance. (LO 2, 4, 6, 7)
(c) Trial balance totals $28,400
Journalize and post transactions and prepare a trial balance. (LO 2, 4, 6, 7)
Repair services performed during January: for cash $5,000; on account $9,000. 7. Wages for January, paid in cash, $3,000. 8. Dividends during January were $1,600. Instructions (a) Open T-accounts for each of the accounts listed in the trial balance, and enter the opening balances for 2015. (b) Prepare journal entries to record each of the January transactions. (Omit explanations.) (c) Post the journal entries to the accounts in the ledger. (Add accounts as needed.) (d) Prepare a trial balance as of January 31, 2015.
Verne Cova Company has the following balances in selected accounts on December 31, 2015. Accounts Receivable $ -0- Accumulated Depreciation-Equipment -0- Equipment 7,000 Interest Payable -0- Notes Payable 10,000 Prepaid Insurance 2,100 Salaries and Wages Payable -0- Supplies 2,450 Unearned Service Revenue 30,000 All the accounts have normal balances. The information below has been gathered at December 31, 2015. 1. Verne Cova Company borrowed $10,000 by signing a 12%, one-year note on September 1, 2015. 2. A count of supplies on December 31, 2015, indicates that supplies of $900 are on hand. 3. Depreciation on the equipment for 2015 is $1,000. 4. Verne Cova Company paid $2,100 for 12 months of insurance coverage on June 1, 2015. 5. On December 1, 2015, Verne Cova collected $30,000 for consulting services to be performed from December 1, 2015, through March 31, 2016. 6. Verne Cova performed consulting services for a client in December 2015. The client will be billed $4,200. 7. Verne Cova Company pays its employees total salaries of $9,000 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2015.
Compute cash and accrual accounting income. (LO 2)
Identify the type of adjusting entry needed. (LO 3, 4, 5)
Prepare adjusting entries from selected data. (LO 4, 5)
Instructions Prepare adjusting entries for the seven items described above.