Assignment 2

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School

Niagara College *

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Course

1615

Subject

Accounting

Date

Feb 20, 2024

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docx

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Uploaded by MinisterKingfisher4125

Financial Accounting Assignment 2 ESSAY. Write your answer in the space provided or on a separate sheet of paper. 1) Given the following adjusted account balances in random order, prepare the closing entries for ABC Company on December 31, 2022. Cash 35,000 Suzie Sheer, Capital 85,000 Accounts payable 33,000 Service revenue 84,000 Amortization expense-building 12,000 Salary expense 29,000 Unearned service revenue 24,000 Prepaid rent 9,000 Supplies expense 6,000 Note payable 71,000 Land 65,000 Accounts receivable 32,000 Accum. amortization-building 12,000 Interest revenue 14,000 Interest payable 3,000 Suzie Sheer, Withdrawals 20,000 Rent expense 15,000 Building 95,000 Supplies 4,000 Interest expense 4,000 Closing entries for ABC Company on December 31, 2022 Account Debit Credit Service Revenue $84,000 Amortization Expense - Building $12,000 Salary Expense $29,000 Supplies Expense $6,000 Rent Expense $15,000 Interest Expense $4,000 Suzie Sheer, Withdrawals $20,000 Income Summary $150,000 Suzie Sheer, Withdrawals $20,000 Income Summary $150,000

Suzie Sheer, Capital $150,000 2) Using the following worksheet for Alphabet Services, prepare an Income Statement, Statement of Owners’ Equity and Balance Sheet. Alphabet Services Worksheet December 31, 2022 Unadjusted Adjusted Income Balance Trial Balance Adjustments Trial Balance Statement Sheet Debit Credit Debit Credit Debit Credit Debit Credit Debit Credit Cash 1,700 1,700 1,700 Accounts Receiv. 8,500 2,000 10,500 10,500 Supplies 100 80 20 20 Equipment 7,500 7,500 7,500 Accum. Amort. 2,000 240 2,240 2,240 Accounts Payable 1,200 1,200 1,200 Salary Payable 800 180 980 980 Unearned Revenue 600 600 600 Owner Capital 3,400 3,400 3,400 Owner Withdraw. 2,300 2,300 2,300 Service Revenue 40,000 2,000 42,000 42,000 Salary Expense 24,000 180 24,180 24,180 Supplies Expense 2,300 80 2,380 2,380 Amort. Expense 1,600 240 1,840 1,840 Total 48,000 48,000 2,500 2,500 50,420 50,420 28,400 42,000 22,020 8,420 Net income/(loss) 13,600 13,600 Total 42,000 42,000 22,020 22,020 Income Statement: Income Statement for the Year Ended December 31, 2022 Service Revenue $42,000 Salary Expense $24,180 Supplies Expense $2,380 Amortization Expense $1,840 Net Income $13,600 Statement of Owner's Equity: Statement of Owner's Equity for the Year Ended December 31, 2022 Owner Capital, January 1,2022 $3,400 Add: Net Income $13,600 Less: Owner Withdrawals $2,300 Owner Capital, December 31,2022 $14,700 Balance Sheet:

Balance Sheet of December 31, 2022 Assets: Cash $1,700 Accounts Receivable $10,500 Supplies $20 Equipment $7,500 Accumulated Amortization $2,240 Total Assets $17,480 Liabilities: Accounts Payable $1,200 Salary Payable $980 Unearned Revenue $600 Total Liabilities $2,780 Owner's Equity: Owner Capital $14,700 Total Liabilities and Owner's Equity $17,480

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