CUMULATIVE COMPREHENSION PROBLEM: ECHO SYSTEMS (This comprehensive problem was introduced in Chapter 2 and continues in Chapters 4 and 5. If the Chapter 2 segment has not been completed, the assignment can begin at this point. You need to use the facts presented in Chapter 2. Because of its length, this problem is most easily solved if you use the Working Papers that accompany this book.) After the success of of its first two months,Mary Graham has decided to continue operatine Echo Systems. (The that occurred in these months are described in Chapter 2.) Before proceeding in December, Gra- e new accounts to the chart of accounts for the ledger: hamadds these ne No. 105 210 Account Accumulated Depreciation Office Equipment ... Accumulated Depreciation, Computer Equipment ............ Wages Payable...... Uneamed Computer Services Revenue..... Depreciation Expense, orice Equipment............. Depreciation Expense. Computer Equipment........... Insurance Expense Rent Expense Computer Supplies ExpenseRequired se journal entries to record each of the following transactions for Echo Systems. Post the entries to the accounts in the ledger Dec 3 Paid $2.100 to the Lakeshore Mall for the company's share of mall advertising cost Paid $1,200 to repair the company's computer Received $7,500 from Alamo Engineering Co. for the receivable from the prior month Paid Carly Smith for six days' work at the rate of $200 per day Notified by Alamo Engineering Co, that Echo's bid of $12,000 on a proposed project was accepted. Alamo paid an advance of $3.000 Purchased $2,310 of computer supplies on credit from Abbott Office Products Sent a reminder to Fostek Co to pay the fee for services originally recorded on November 8 Completed a project for Elite Corporation and received $11.250 cash Took the week off for the holidays. Received $5.700 from Fostek Co. on its receivable. Reimbursed Mary Graham's business automobile expenses of 600 kilometres at $1.00 per kilometre. Graham withdrew $3,600 cash from the business 2. Prepare adjusting entries to record the following additional information collected on December 31, 2020. Post the entries to the accounts in the ledger. a. The December 31 inventory of computer supplies was $1,440. b. Three months have passed since the annual insurance premium was paid. c. As of the end of the year. Carly Smith has not been paid for four days of work at the rate of $200 per day. d. The computer is expected to have a four-year life with no residual value. e. The office equipment is expected to have a three-year life with no residual value. f. Prepaid rent for three of the four months has expired. Prepare an adjusted trial balance as of December 31, 2020. Prepare an income statement and statement of changes in equity for the three months ended December 31, 2020 S. Prepare a balance sheet as of December 31, 2020.
CUMULATIVE COMPREHENSION PROBLEM: ECHO SYSTEMS
(This comprehensive problem was introduced in Chapter 2 and continues in Chapters 4 and 5. If the Chapter 2 segment has not been completed, the assignment can begin at this point. You need to use the facts presented in Chapter 2. Because of its length, this problem is most easily solved if you use the Working Papers that accompany this book.)
After the success of of its first two months,Mary Graham has decided to continue operatine Echo Systems. (The that occurred in these months are described in Chapter 2.) Before proceeding in December, Gra- e new accounts to the chart of accounts for the ledger: hamadds these ne No. 105 210 Account Accumulated Depreciation Office Equipment ...
Accumulated Depreciation, Computer Equipment ............
Wages Payable......
Uneamed Computer Services Revenue....
. Depreciation Expense, orice Equipment............
. Depreciation Expense.
Computer Equipment........... I
nsurance Expense Rent Expense Computer Supplies Expense
Required se journal entries to record each of the following transactions for Echo Systems. Post the entries to the accounts in the ledger
Dec 3 Paid $2.100 to the Lakeshore Mall for the company's share of mall advertising cost
Paid $1,200 to repair the company's computer
Received $7,500 from Alamo Engineering Co. for the receivable from the prior month
Paid Carly Smith for six days' work at the rate of $200 per day
Notified by Alamo Engineering Co, that Echo's bid of $12,000 on a proposed project was accepted. Alamo paid an advance of $3.000
Purchased $2,310 of computer supplies on credit from Abbott Office Products
Sent a reminder to Fostek Co to pay the fee for services originally recorded on November 8
Completed a project for Elite Corporation and received $11.250 cash
Took the week off for the holidays.
Received $5.700 from Fostek Co. on its receivable.
Reimbursed Mary Graham's business automobile expenses of 600 kilometres at $1.00 per kilometre.
Graham withdrew $3,600 cash from the business
2. Prepare adjusting entries to record the following additional information collected on December 31, 2020. Post the entries to the accounts in the ledger.
a. The December 31 inventory of computer supplies was $1,440.
b. Three months have passed since the annual insurance premium was paid.
c. As of the end of the year. Carly Smith has not been paid for four days of work at the rate of $200 per day.
d. The computer is expected to have a four-year life with no residual value.
e. The office equipment is expected to have a three-year life with no residual value.
f. Prepaid rent for three of the four months has expired.
Prepare an adjusted trial balance as of December 31, 2020.
Prepare an income statement and statement of changes in equity for the three months ended December 31, 2020 S.
Prepare a balance sheet as of December 31, 2020.
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
