Enter the transactions 1-9 in the general journal provided on the following page
ID: 2471122 • Letter: E
Question
Enter the transactions 1-9 in the general journal provided on the following pages.
Enter the 12/31/15 balances in ledger accounts. Use the ledger account running balance format accounts provided on the following pages.
Post the journal entries to the ledger accounts for items 1 – 9.
Prepare a bank reconciliation in good form. (Item 15 above.) Use your own paper. Record the necessary AJE.
Journalize and post all other adjusting entries. (Items 10 - 16)
Prepare an income statement and a retained earnings statement for the quarter ended 3/31/16 and a classified balance sheet at 3/31/16. Use your own paper. (No formatted sheets are supplied as we did for the other items.)
Explanation / Answer
Date Accounts Title Dr Cr Account Receivable $140,000 Service Revenue $140,000 (Being services performed on account) 2/1/2016 Cash $12,000 Unearned Service Fees $12,000 (Being fees received in advance) 2/1/2016 Computer Equipment $9,600 Cash 3000 Bank (Check no 455) 6600 (Being equipment purchased, sales tax included paid through check and cash) 3/5/2016 Cash $133,000 Accounts Receivable 133000 (Being cash received) Accounts Payable 16370 Bank 16370 (check no 456 issued) Operating Expenses 97525 Bank 97525 (Being check no 456 issued) Patent Bank 9600 (Being patent purchased check no. 458) 9600 Allowance for Doubtful Debts 200 Accounts receivable 200 (Being customer declared bankrupt) Cash 1620 Loss on sale of equipment (11000-8000-1620) 1380 Accumulated Depreciation 8000 Equipment 11000 (Being sale of equipment at a loss) Unearned Fees $3,000 Service Fees Revenue 3000 (feesr earned for 3 months) Allowance for Doubtful Debts 800 Acconts Receivable 800 (Accounts receivable=22400+140000-133000-200=29200 balance on 26000*4% and balance (29200-26000)*23.75%=1800 already 1200-200=$1000 is credit balance in allowance a/c so $1000more will be credited) Depreciation-Equipment(20000-11000)/10 900 Accumulated Depreciation equipment 900 (Being old equipment depreciated at SLM0 Depreciation-Equipment 860 Accumulated Depreciation equipment 860 (Being double declining method used its double of SLM (9600-1000)/5*200%*3/12 Depreciation-Building (100000-10000)/30 3000 Accumulated Depreciation Building 3000 (Being depreciation recorded) Amortization Expense-Patent 9600/10 960 Accumulataed Amortization Expense 960 Balance as per Bank Statement $64,594 Add;Deposit in Transit $5,000 Less: Outstanding checks 3444+333+865+5845 -10487 Corrected Balance $59,107 Opearting Exepnese 100 Bank 100 Unadjusted Trial balance Adjusting Journal Entries Adjusted Trial Balance Income Statement Balance Sheet Dr Cr Dr Cr Dr Cr Dr Cr Assets Liabilities Cash $54,095 100 53995 53995 Accounts Receivable 29200 29200 29200 Allowance for doubtful debts 1000 800 1800 1800 Land 20000 20000 20000 Equipment (9000+9600) 18600 18600 18600 Accumulated Depreciation - equipment 7000 1760 8760 -8760 Building 100000 100000 100000 Accumulated Depreciation - Building 15000 3000.00 18000 -18000 Patent 9600 9600 9600 Accumulated Depreciation - Patent 960.00 960.000 -960 Accounts Payable (12370-16370) 4000 4000 0 4000 Unearbned Revenue 12000 3000 9000 9000.00 Common Stock 90000 90000 90000.00 Retained Earnings 53130 0 53130 94605 Services Revenue 140000 3000 143000 143000 Depreciation - equipment 1760 1760 1760 Depreciation - Building 3000.00 3000.00 3000 Depreciation - Patent 960.00 960.00 960 Operating Expenses 93525 100 93625.00 93625 Bad Debt Expense 800.0 800.00 800 Loss on sale of Equipment 1380 1380 1380 Net Profit 41475 330400 318130 9620 9620.000 338720 322850 143000 143000 209475 193605
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