Edgar Detoya, tax consultant, began his practice on Dec. 1, 2014. The transactione the firm are as follows: Detoya invested P150,000 in the firm. Paid rent for December to Recoletos Realty, P8,000. Purchased supplies on account, P7,200. Acquired P75,000 of office equipment, paying P37,000 down with the balance due in 30 days. Paid P7,200 on account for supplies purchased. Paid assistant's salaries for two weeks, P6,000. Performed consulting services for cash, P20,000. Paid assistant's salaries for two weeks, P6,000. Billed clients for December consulting services, P48,000. Detoya withdrew P12,000 from the business. Dec. 1 2 2 8 14 20 28 30 31 Required: 1. Open the following general ledger accounts, using the account numbers shown: Cash (110); Accounts Receivable (120); Fees Receivable (130); Supplies (140); Office Equipment (150); Accumulated Depreciation (155); Accounts Payable (210); Salaries Payable (220); Detoya, Capital (310); Detoya, Withdrawals (320); Income Summary (330); Consulting Reveriues (410); Salaries Expense (510); Supplies Expense (520); Rent Expense (530); and Depreciation Expense (540). 2. Journalize the December transactions and post to the ledger. 3. Prepare and complete the worksheet using the following information: a. Supplies on hand at Dec. 31 amounted to P4,700. b. Salaries of P1,800 have accrued at month-end. c. Depreciation is P800 for December. d. Detoya has spent 20 hou's on a tax fraud case during December. When completed in January, his work will be billed at P500 per hour. Note: The firm uses the account Fees Receivable to reflect the amounts earned but not yet billed. 4. Prepare an income statement, a statement of changes in equity; a balance sheet and a statement of cash flows. 5. Journalize and post adjusting and closing entries. 6. Prepare a post-closing trial balance. 7. Journalize and post the reversing entries.
Edgar Detoya, tax consultant, began his practice on Dec. 1, 2014. The transactione the firm are as follows: Detoya invested P150,000 in the firm. Paid rent for December to Recoletos Realty, P8,000. Purchased supplies on account, P7,200. Acquired P75,000 of office equipment, paying P37,000 down with the balance due in 30 days. Paid P7,200 on account for supplies purchased. Paid assistant's salaries for two weeks, P6,000. Performed consulting services for cash, P20,000. Paid assistant's salaries for two weeks, P6,000. Billed clients for December consulting services, P48,000. Detoya withdrew P12,000 from the business. Dec. 1 2 2 8 14 20 28 30 31 Required: 1. Open the following general ledger accounts, using the account numbers shown: Cash (110); Accounts Receivable (120); Fees Receivable (130); Supplies (140); Office Equipment (150); Accumulated Depreciation (155); Accounts Payable (210); Salaries Payable (220); Detoya, Capital (310); Detoya, Withdrawals (320); Income Summary (330); Consulting Reveriues (410); Salaries Expense (510); Supplies Expense (520); Rent Expense (530); and Depreciation Expense (540). 2. Journalize the December transactions and post to the ledger. 3. Prepare and complete the worksheet using the following information: a. Supplies on hand at Dec. 31 amounted to P4,700. b. Salaries of P1,800 have accrued at month-end. c. Depreciation is P800 for December. d. Detoya has spent 20 hou's on a tax fraud case during December. When completed in January, his work will be billed at P500 per hour. Note: The firm uses the account Fees Receivable to reflect the amounts earned but not yet billed. 4. Prepare an income statement, a statement of changes in equity; a balance sheet and a statement of cash flows. 5. Journalize and post adjusting and closing entries. 6. Prepare a post-closing trial balance. 7. Journalize and post the reversing entries.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
What are the reversing entries?
Transcribed Image Text:Edgar Detoya, tax consultant, began his practice on Dec. 1, 2014. The transactione .
the firm are as follows:
Detoya invested P150,000 in the firm.
Paid rent for December to Recoletos Realty, P8,000.
Purchased supplies on account, P7,200.
Acquired P75,000 of office equipment, paying P37,000
down with the balance due in 30 days.
Paid P7,200 on account for supplies purchased.
Paid assistant's salaries for two weeks, P6,000.
Performed consulting services for cash, P20,000.
Paid assistant's salaries for two weeks, P6,000.
Billed clients for December consulting services, P48,000.
Detoya withdrew P12,000 from the business.
Dec. 1
2
3
8.
14
20
28
30
31
Required:
1. Open the following general ledger accounts, using the account numbers shown:
Cash (110); Accounts Receivable (120); Fees Receivable (130); Supplies (140); Office
Equipment (150); Accumulated Depreciation (155); Accounts Payable (210); Salaries
Payable (220); Detoya, Capital (310); Detoya, Withdrawals (320); Income Summary
(330); Consulting Reveriues (410); Salaries Expense (510); Supplies Expense (520);
Rent Expense (530); and Depreciation Expense (540).
2. Journalize the December transactions and post to the ledger.
3. Prepare and complete the worksheet using the following information:
a. Supplies on hand at Dec. 31 amounted to P4,700.
b. Salaries of P1,800 have accrued at month-end.
c. Depreciation is P800 for December.
d. Detoya has spent 20 hours on a tax fraud case during December. When
completed in January, his work will be billed at P500 per hour. Note: The firm
uses the account Fees Receivable to reflect the amounts earned but not yet
billed,
4. Prepare an income statement, a statement of changes in equity: a balance sheet
and a statement of cash flows.
5. Journalize and post adjusting and closing entries.
6. Prepare a post-closing trial balance.
7. Journalize and post the reversing entries.
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