For the past three years, Carol Dixon operated part-time as shipping agent and in 2022 she decided to move to a rented office and to operate the business on a full-time basis. She registered the business as CD Shipping Agent Ltd but has no accounting personal to prepare her financial information and has approached your group for assistance. The company's financial year end is December 31 each year. They have provided the following information and transactions for 2022: Jan 1. Jan 2. Feb 1. Mar 30. April 4. May 5. June 6. June 10. Sept 30. Oct 17. Oct 30. Oct 30. Aug 12. Sept 12. 12, $104,000. Nov 24. Nov 25. Nov 27. Dec 29. Dec 30. Dec 30. Balances from 2021-Cash $280,000; Accounts Receivable $125,000; Supplies $105,000; Furniture and Equipment $440,000; Other Creditors $115,000; and Capital $835,000. The following assets were received from Carol Dixon in exchange for capital in the company: cash - $120,000, accounts receivable - $20,500, supplies - $25,050, and office equipment - $100,000. Paid fifteen (15) months' rent on a lease rental contract, $375,000. Paid the premiums on the property and peril insurance policies, $150,000. Dec 30. Received cash from clients as an advance payment for services to be provided in the months, $200,000. Purchased additional office equipment on account from DT Company, $60,000. Received cash from clients on account, $63,000. Paid cash for newspaper advertisement, $15,800. Paid DT Company a portion of the debt incurred on May 5, $45,000. Recorded services provided on account for the period July 1 - Sept Paid part-time workers salary, $60,000. Recorded cash from cash clients for fees earned during the first half of year, $233,000. Paid cash for supplies, $11,000. Recorded services provided on account for the period June to July, $110,000. Recorded cash from cash clients for fees earned for the period September 13- Nov 24, $190,000. Received cash from clients on account, $22,000. Paid part-time workers for salary $180,000. Paid telephone bill for the year 2022 $60,000. Paid electricity bill for the year 2022 $190,000. Recorded cash from cash clients for fees earned for the period September 14- Dec 30, $190,000. Recorded services provided on account for October to December 2022, $63,000.
For the past three years, Carol Dixon operated part-time as shipping agent and in 2022 she decided to move to a rented office and to operate the business on a full-time basis. She registered the business as CD Shipping Agent Ltd but has no accounting personal to prepare her financial information and has approached your group for assistance. The company's financial year end is December 31 each year. They have provided the following information and transactions for 2022: Jan 1. Jan 2. Feb 1. Mar 30. April 4. May 5. June 6. June 10. Sept 30. Oct 17. Oct 30. Oct 30. Aug 12. Sept 12. 12, $104,000. Nov 24. Nov 25. Nov 27. Dec 29. Dec 30. Dec 30. Balances from 2021-Cash $280,000; Accounts Receivable $125,000; Supplies $105,000; Furniture and Equipment $440,000; Other Creditors $115,000; and Capital $835,000. The following assets were received from Carol Dixon in exchange for capital in the company: cash - $120,000, accounts receivable - $20,500, supplies - $25,050, and office equipment - $100,000. Paid fifteen (15) months' rent on a lease rental contract, $375,000. Paid the premiums on the property and peril insurance policies, $150,000. Dec 30. Received cash from clients as an advance payment for services to be provided in the months, $200,000. Purchased additional office equipment on account from DT Company, $60,000. Received cash from clients on account, $63,000. Paid cash for newspaper advertisement, $15,800. Paid DT Company a portion of the debt incurred on May 5, $45,000. Recorded services provided on account for the period July 1 - Sept Paid part-time workers salary, $60,000. Recorded cash from cash clients for fees earned during the first half of year, $233,000. Paid cash for supplies, $11,000. Recorded services provided on account for the period June to July, $110,000. Recorded cash from cash clients for fees earned for the period September 13- Nov 24, $190,000. Received cash from clients on account, $22,000. Paid part-time workers for salary $180,000. Paid telephone bill for the year 2022 $60,000. Paid electricity bill for the year 2022 $190,000. Recorded cash from cash clients for fees earned for the period September 14- Dec 30, $190,000. Recorded services provided on account for October to December 2022, $63,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
The Effect Of Prepaid Taxes On Assets And Liabilities
Many businesses estimate tax liability and make payments throughout the year (often quarterly). When a company overestimates its tax liability, this results in the business paying a prepaid tax. Prepaid taxes will be reversed within one year but can result in prepaid assets and liabilities.
Final Accounts
Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.
Ledger Posting
A ledger is an account that provides information on all the transactions that have taken place during a particular period. It is also known as General Ledger. For example, your bank account statement is a general ledger that gives information about the amount paid/debited or received/ credited from your bank account over some time.
Trial Balance and Final Accounts
In accounting we start with recording transaction with journal entries then we make separate ledger account for each type of transaction. It is very necessary to check and verify that the transaction transferred to ledgers from the journal are accurately recorded or not. Trial balance helps in this. Trial balance helps to check the accuracy of posting the ledger accounts. It helps the accountant to assist in preparing final accounts. It also helps the accountant to check whether all the debits and credits of items are recorded and posted accurately. Like in a balance sheet debit and credit side should be equal, similarly in trial balance debit balance and credit balance should tally.
Adjustment Entries
At the end of every accounting period Adjustment Entries are made in order to adjust the accounts precisely replicate the expenses and revenue of the current period. It is also known as end of period adjustment. It can also be referred as financial reporting that corrects the errors made previously in the accounting period. The basic characteristics of every adjustment entry is that it affects at least one real account and one nominal account.
Question
Transcribed Image Text:For the past three years, Carol Dixon operated part-time as shipping agent and in
2022 she decided to move to a rented office and to operate the business on a
full-time basis. She registered the business as CD Shipping Agent Ltd but has no
accounting personal to prepare her financial information and has approached
your group for assistance. The company's financial year end is December 31
each year. They have provided the following information and transactions for
2022:
Jan 1.
Jan 2.
Feb 1.
Mar 30.
April 4.
May 5.
June 6.
June 10.
Sept 30.
Oct 17.
Oct 30.
Oct 30.
Aug 12.
Sept 12.
12, $104,000.
Nov 24.
Nov 25.
Nov 27.
Dec 29.
Dec 30.
Dec 30.
Balances from 2021-Cash $280,000; Accounts Receivable
$125,000; Supplies $105,000; Furniture and Equipment $440,000;
Other Creditors $115,000; and Capital $835,000.
The following assets were received from Carol Dixon in exchange for
capital in the company: cash - $120,000, accounts receivable - $20,500,
supplies - $25,050, and office equipment - $100,000.
Paid fifteen (15) months' rent on a lease rental contract, $375,000.
Paid the premiums on the property and peril insurance policies,
$150,000.
Dec 30.
Received cash from clients as an advance payment for services to
be provided in the coming months, $200,000.
Purchased additional office equipment on account from DT Company,
$60,000.
Received cash from clients on account, $63,000.
Paid cash for newspaper advertisement, $15,800.
Paid DT Company a portion of the debt incurred on May 5, $45,000.
Recorded services provided on account for the period July 1 - Sept
Paid part-time workers salary, $60,000.
Recorded cash from cash clients for fees earned during the first half
of year, $233,000.
Paid cash for supplies, $11,000.
Recorded services provided on account for the period June to July,
$110,000.
Recorded cash from cash clients for fees earned for the period
September 13- Nov 24, $190,000.
Received cash from clients on account, $22,000.
Paid part-time workers for salary $180,000.
Paid telephone bill for the year 2022 $60,000.
Paid electricity bill for the year 2022 $190,000.
Recorded cash from cash clients for fees earned for the period
September 14- Dec 30, $190,000.
Recorded services provided on account for October to December
2022, $63,000.
Transcribed Image Text:Account #Account Name
Cash
11
12
14
15
16
18
21
22
23
31
41
51
52
53
54
55
56
57
Accounts Receivables
Supplies
Prepaid Rent
Prepaid Insurance
Furniture and Equipment
Other Creditors
Salaries Payable
Unearned Fees
Capital Stock
Fees Earned
Salary Expense
Rent Expense
Supplies Expense
Insurance Expense
Utilities Expense
Advertising Expense
Income Summary
2. Post the journal entries to their respective ledger accounts.
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