Ex. Prepare an income statement, an owner's equity statement, and a balance sheet for the accupuncture practice of Golda Bear, from the items listed below for the month of September, 2016.
Owner’s Capital, September 1 $47,000
Accounts payable 7,000
Equipment 35,000
Service revenue 28,000
Owner’s Drawings 6,000
Insurance expense 4,500
Cash 3,000
Utilities expense 700
Supplies 4,800
Salaries and wages expense 9,000
Accounts receivable 14,000
Rent expense 5,000
Ex. Prepare an income statement, an owner's equity statement, and a balance sheet for the accupuncture practice of Golda Bear, from the items listed below for the month of September, 2016.
Owner’s Capital, September 1 $47,000
Accounts payable 7,000
Equipment 35,000
Service revenue 28,000
Owner’s Drawings 6,000
Insurance expense 4,500
Cash 3,000
Utilities expense 700
Supplies 4,800
Salaries and wages expense 9,000
Accounts receivable 14,000
Rent expense 5,000
Related questions
Rolling Hills Golf Inc. was organized on July 1, 2012. Quarterlyfinancial statements are prepared. The trial balance and adjustedtrial balance on September 30 are shown here.
ROLLING HILLS GOLF INC. | ||||
Unadjusted | Adjusted | |||
Dr. | Cr. | Dr. | Cr. | |
Cash | $ 6,700 | $ 6,700 | ||
Accounts Receivable | 400 | 1,000 | ||
Prepaid Rent | 1,800 | 900 | ||
Supplies | 1,200 | 180 | ||
Equipment | 15,000 | 15,000 | ||
Accumulated DepreciationâEquipment | $ 350 | |||
Notes Payable | $ 5,000 | 5,000 | ||
Accounts Payable | 1,070 | 1,070 | ||
Salaries and Wages Payable | 600 | |||
Interest Payable | 50 | |||
Unearned Rent Revenue | 1,000 | 800 | ||
Common Stock | 14,000 | 14,000 | ||
Retained Earnings | 0 | 0 | ||
Dividends | 600 | 600 | ||
Service Revenue | 14,100 | 14,700 | ||
Rent Revenue | 700 | 900 | ||
Salaries and Wages Expense | 8,800 | 9,400 | ||
Rent Expense | 900 | 1,800 | ||
Depreciation Expense | 350 | |||
Supplies Expense | 1,020 | |||
Utilities Expense | 470 | 470 | ||
Interest Expense | 50 | |||
$35,870 | $35,870 | $37,470 | $37,470 | |
Instructions
(a) Journalize the adjusting entries that were made.
(b) Prepare an income statement and a retained earningsstatement for the 3 months ending September 30 and a classifiedbalance sheet at September 30.
(c) Identify which accounts should be closed on September30.
(d) If the note bears interest at 12%, how many months has itbeen outstanding?
Terrific Temps fills temporary employment positions for localbusinesses. Some businesses pay in
advance for services; others are billed after services have beenperformed. Advanced payments are
credited to an account entitled Unearned Fees. Adjusting entriesare performed on a monthly basis.
An unadjusted trial balance dated December 31, 2015, follows. (Bearin mind that adjusting entries
have already been made for the first 11 months of 2015, but not forDecember.)
| TERRIFIC TEMPS UNADJUSTED TRIAL BALANCE DECEMBER 31, 2015 | |||||
| Cash | $ | 27,020 | |||
| Accounts receivable | 59,200 | ||||
| Unexpired insurance | 900 | ||||
| Prepaid rent | 3,000 | ||||
| Office supplies | 600 | ||||
| Equipment | 60,000 | ||||
| Accumulated depreciation: equipment | $ | 29,500 | |||
| Accounts payable | 4,180 | ||||
| Notes payable | 12,000 | ||||
| Interest payable | 320 | ||||
| Unearned fees | 6,000 | ||||
| Income taxes payable | 4,000 | ||||
| Unearned revenue | 20,000 | ||||
| Retained earnings | 49,000 | ||||
| Capital stock | 25,000 | ||||
| Dividends | 3,000 | ||||
| Feesearned | 75,000 | ||||
| Travel expense | 5,000 | ||||
| Insurance expense | 2,980 | ||||
| Rentexpense | 9,900 | ||||
| Office supplies expense | 780 | ||||
| Utilities expense | 4,800 | ||||
| Depreciation expense: equipment | 5,500 | ||||
| Salaries expense | 30,000 | ||||
| Interest expense | 320 | ||||
| Income taxes expense | 12,000 | ||||
| $ | 225,000 | $ | 225,000 | ||
| Other Data | |
| 1. | Accrued butunrecorded fees earned as of December 31, 2015, amount to$1,500. |
| 2. | Records showthat $2,500 of cash receipts originally recorded as unearned feeshad been earned as of December 31. |
| 3. | The companypurchased a six-month insurance policy on September 1, 2015, for$1,800. |
| 4. | On December 1,2015, the company paid its rent through February 28, 2016. |
| 5. | Office supplieson hand at December 31 amount to $400. |
| 6. | All equipment was purchased when the business first formed. Theestimated life of the equipment at that time was 10 years (or 120months). |
| 7. | On August 1, 2015, the company borrowed $12,000 by signing asix-month, 8 percent note payable. The entire note, plus sixmonths' accrued interest, is due on February 1, 2016. |
| 8. | Accrued butunrecorded salaries at December 31 amount to $2,700. |
| 9. | Estimated incometaxes expense for the entire year totals $15,000. Taxesare due in the first quarter of 2016. |
| Instructions |
| a. | For each of thenumbered paragraphs, prepare the necessary adjusting entry.(If no entry is required for a transaction/event, select"No journal entry required" in the first accountfield.) |
Journal Entry Worksheet
Record the accrued but uncollected fees earned.
Record fees earned as of December 31st.
Record the December insurance expense.
Record the December rent expense.
Record the offices supplies used in December.
Record the December depreciation expense.
Record the interest accrued in December.
Record the salaries accrued in December.
Record the income taxes accrued in December.
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*Enter debits before credits
| 1. | Fees earned | |
| 2. | Travel expense | |
| 3. | Insurance expense | |
| 4. | Rent expense | |
| 5. | Office supplies expense | |
| 6. | Utilities expense | |
| 7. | Depreciation expense: equipment | |
| 8. | Interest expense | |
| 9. | Salaries expense | |
| 10. | Income taxes expense |
| . | The unadjusted trial balance reportsdividends of $3,000. As of December 31, 2015, have these dividendsbeen paid? | ||||
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