‹‹‹8······7····· 6 ·· ··· 5 · · · · 4 ····· 3 ··· | · · · 2 · . . | . . . 1 .........it AutoSave Off File Home Insert Draw Design Practice Question_be390c58616ebf1644075e4b74a989fc v Search Layout References Mailings Review View Help 1. C.K. Josh opened her consulting business, "C.K. Josh Consulting Services", specializing in business consultancy. The end-of-year unadjusted trial balance and adjustment data at December 31, 2023, the end of the entity's fiscal year, were as follows: C.K. Josh Consulting Services Trial Balance as at December 31, 2023 DR $ CR $ Cash Revenue Receivable Office Supplies 185,500 98,000 33,000 Prepaid Insurance Prepaid Rent 84,000 63,000 Furniture & Equipment 650,000 Accumulated Depreciation: Furniture & Fixtures Cleaning Equipment 195,000 228,000 Accumulated Depreciation: Computer Equipment Accounts Payable 90,250 Travis McIntosh TM 困 Comments Editing Share 1‹‹‹‹‹‹‹ 2 · · · · · · · 3············· 5 · · · · · ·6.....7... b) Rent was paid on November 1, 2023, for the 6-months to April 31, 2024. c) The Furniture & Fixtures are being depreciated over eight (8) years on the fixed instalment method of depreciation, down to a residual of $130,000. d) Computer Equipment costing $228,000 with an expected life of five (5) years and expected residual value of $48,000 was acquired on March 31, 2022. The asset is being depreciated on the straight-line method of depreciation. e) A premium of $84,000 for a one-year insurance policy was paid on August 1, 2023. f) Wages & Salaries earned by employees but not paid amounted to $8,000 on December 31, 2023. g) At December 31, 2023, $36,500 of the previously unearned service revenues had been earned. h) Service Revenue Earned by the business during the period amounting to $18,000 was neither recorded nor collected. Salaries & Wages Payable Interest Payable Unearned Service Revenue Long-Term Loan C.K. Josh, Capital C.K. Josh, Withdrawals Service Revenue Rent Expense Salaries & Wages Expense Telephone Expense Office Supplies Expense Insurance Expense Depreciation Expense - Furniture & Fixtures Depreciation Expense - Computer Equipment Utilities Expense Interest Expense Total Additional data at December 31, 2023: 28,125 54,750 300,000 471,500 48,000 748,000 105,000 209,000 12,000 144,000 28.125 $1,887,625 $1,887,625 a) An inventory count shows that Office Supplies costing $9,000 are on hand at Dacombones soos Page 2 of 2 431 words Text Predictions: On Type here to search Accessibility: Unavailable H a myho i) Accrued interest expense, $9,375- Other Data: $75,000 of the Long-Term loan is due for payment on April 1, 2024. Required: i) Prepare the necessary year-end adjusting journal entries for C.K. Josh Consulting Services on December 31, 2023. [Narrations are not required] ii) Prepare a multistep income statement and a statement of owner's equity for the year ended December 31, 2016 and a classified balance sheet as at that date. [List expenses in decreasing order of their amount, starting with the largest] iii) Compute C.K. Josh Consulting Services current ratio, debt ratio and return on owner's equity at December 31, 2023. Explain what the current ratio measures and whether it is usually preferable to have a higher or lower ratio. 冒 Focus 27°C Mostly cloudy 7:59 AM 10/2/2024 90% 18 PRE

‹‹‹8······7····· 6 ·· ··· 5 · · · · 4 ····· 3 ··· | · · · 2 · . . | . . . 1 .........it AutoSave Off File Home Insert Draw Design Practice Question_be390c58616ebf1644075e4b74a989fc v Search Layout References Mailings Review View Help 1. C.K. Josh opened her consulting business, "C.K. Josh Consulting Services", specializing in business consultancy. The end-of-year unadjusted trial balance and adjustment data at December 31, 2023, the end of the entity's fiscal year, were as follows: C.K. Josh Consulting Services Trial Balance as at December 31, 2023 DR $ CR $ Cash Revenue Receivable Office Supplies 185,500 98,000 33,000 Prepaid Insurance Prepaid Rent 84,000 63,000 Furniture & Equipment 650,000 Accumulated Depreciation: Furniture & Fixtures Cleaning Equipment 195,000 228,000 Accumulated Depreciation: Computer Equipment Accounts Payable 90,250 Travis McIntosh TM 困 Comments Editing Share 1‹‹‹‹‹‹‹ 2 · · · · · · · 3············· 5 · · · · · ·6.....7... b) Rent was paid on November 1, 2023, for the 6-months to April 31, 2024. c) The Furniture & Fixtures are being depreciated over eight (8) years on the fixed instalment method of depreciation, down to a residual of $130,000. d) Computer Equipment costing $228,000 with an expected life of five (5) years and expected residual value of $48,000 was acquired on March 31, 2022. The asset is being depreciated on the straight-line method of depreciation. e) A premium of $84,000 for a one-year insurance policy was paid on August 1, 2023. f) Wages & Salaries earned by employees but not paid amounted to $8,000 on December 31, 2023. g) At December 31, 2023, $36,500 of the previously unearned service revenues had been earned. h) Service Revenue Earned by the business during the period amounting to $18,000 was neither recorded nor collected. Salaries & Wages Payable Interest Payable Unearned Service Revenue Long-Term Loan C.K. Josh, Capital C.K. Josh, Withdrawals Service Revenue Rent Expense Salaries & Wages Expense Telephone Expense Office Supplies Expense Insurance Expense Depreciation Expense - Furniture & Fixtures Depreciation Expense - Computer Equipment Utilities Expense Interest Expense Total Additional data at December 31, 2023: 28,125 54,750 300,000 471,500 48,000 748,000 105,000 209,000 12,000 144,000 28.125 $1,887,625 $1,887,625 a) An inventory count shows that Office Supplies costing $9,000 are on hand at Dacombones soos Page 2 of 2 431 words Text Predictions: On Type here to search Accessibility: Unavailable H a myho i) Accrued interest expense, $9,375- Other Data: $75,000 of the Long-Term loan is due for payment on April 1, 2024. Required: i) Prepare the necessary year-end adjusting journal entries for C.K. Josh Consulting Services on December 31, 2023. [Narrations are not required] ii) Prepare a multistep income statement and a statement of owner's equity for the year ended December 31, 2016 and a classified balance sheet as at that date. [List expenses in decreasing order of their amount, starting with the largest] iii) Compute C.K. Josh Consulting Services current ratio, debt ratio and return on owner's equity at December 31, 2023. Explain what the current ratio measures and whether it is usually preferable to have a higher or lower ratio. 冒 Focus 27°C Mostly cloudy 7:59 AM 10/2/2024 90% 18 PRE

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 11.18E

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