General Ledger Problem 5.1 (based on Chapter example). LO 5-1, 5-2, 5-3, 5-4, 5-5 This is a continuation of the Eli's Consulting Services from the previous chapter. 1. On December 31, 2024 Trayton Eli counted the supplies. Remaining supplies totaled $1,000. 2. On November 30, 2024, Eli's Consulting Services paid $8,000 rent for December and January. 3. On December 1, Eli's Consulting Services purchased $11,000 worth of equipment. The equipment has an estimated useful life of five years and no salvage value. Requirement General Journal Supplies Prepaid rent Depreciation General Ledger Trial Balance Income Statement Income Statement Statement Owner Equity ------Account affecting the------ (28% of available points) The adjusting entry process is critical to the accuracy of financial statements. We know that every adjusting entry affects one income statement account, one balance sheet account, but never cash. For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.) Note: Round final answer to the nearest whole dollar. Total impact on income due to adjustments: Net income before adjustments Net income after adjustments Balance Sheet Impact on Income Balance Sheet Impact on net income $ Show less A 0 Show lessA
General Ledger Problem 5.1 (based on Chapter example). LO 5-1, 5-2, 5-3, 5-4, 5-5 This is a continuation of the Eli's Consulting Services from the previous chapter. 1. On December 31, 2024 Trayton Eli counted the supplies. Remaining supplies totaled $1,000. 2. On November 30, 2024, Eli's Consulting Services paid $8,000 rent for December and January. 3. On December 1, Eli's Consulting Services purchased $11,000 worth of equipment. The equipment has an estimated useful life of five years and no salvage value. Requirement General Journal Supplies Prepaid rent Depreciation General Ledger Trial Balance Income Statement Income Statement Statement Owner Equity ------Account affecting the------ (28% of available points) The adjusting entry process is critical to the accuracy of financial statements. We know that every adjusting entry affects one income statement account, one balance sheet account, but never cash. For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment caused net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.) Note: Round final answer to the nearest whole dollar. Total impact on income due to adjustments: Net income before adjustments Net income after adjustments Balance Sheet Impact on Income Balance Sheet Impact on net income $ Show less A 0 Show lessA
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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this is a practice exersise not an exam. I got stuck at part Impact of Income. Could you please help me step by step how to complete it?
Transcribed Image Text:**Trial Balance for Eli's Consulting Services as of December 31, 2024**
This trial balance provides a snapshot of Eli's Consulting Services' financial position as of December 31, 2024, detailing its debit and credit accounts.
**Assets:**
- **Cash:** $111,350
- **Accounts Receivable:** $5,000
- **Prepaid Rent:** $4,000
- **Supplies:** $1,000
- **Equipment:** $11,000
**Liabilities and Equity:**
- **Accumulated Depreciation - Equipment:** $183
- **Accounts Payable:** $3,500
- **Trayton Eli, Capital:** $100,000
**Drawing:**
- **Trayton Eli, Drawing:** $5,000
**Income:**
- **Fees Income:** $47,000
**Expenses:**
- **Supplies Expense:** $500
- **Rent Expense:** $4,000
- **Salaries Expense:** $8,000
- **Utilities Expense:** $650
- **Depreciation Expense - Equipment:** $183
The totals for both debit and credit columns equal $150,683, indicating that the books are balanced.
The trial balance is a crucial financial document used by accountants to ensure that a company's debits and credits are in balance at the end of a reporting period. It aids in the preparation of financial statements and identifies any discrepancies that need correction.
Transcribed Image Text:**General Ledger Problem 5.1 (based on Chapter example). LO 5-1, 5-2, 5-3, 5-4, 5-5**
This is a continuation of the Eli's Consulting Services from the previous chapter.
1. On December 31, 2024, Trayton Eli counted the supplies. Remaining supplies totaled $1,000.
2. On November 30, 2024, Eli's Consulting Services paid $8,000 rent for December and January.
3. On December 1, Eli's Consulting Services purchased $11,000 worth of equipment. The equipment has an estimated useful life of five years and no salvage value.
**Adjusting Entry Process Explanation:**
(28% of available points) The adjusting entry process is critical to the accuracy of financial statements. Every adjusting entry affects one income statement account, one balance sheet account, but never cash. For each adjustment, indicate the income statement and balance sheet account affected, and the impact on net income. If an adjustment causes net income to decrease, enter the amount as a negative value. Net income before adjustments can be found on the income statement tab. (Hint: Select unadjusted on the dropdown.)
*Note:* Round the final answer to the nearest whole dollar.
**Accounts and Impact Table:**
| | **Account affecting the** | | **Impact on net income** |
|---------------------------|---------------------------|-----------------------|-------------------------|
| | **Income Statement** | **Balance Sheet** | |
| **Supplies** | | | |
| **Prepaid rent** | | | |
| **Depreciation** | | | |
| | | | |
| **Total impact on income due to adjustments:** | | | $0 |
**Net income before adjustments**:
**Net income after adjustments**:
This exercise helps illustrate how adjustments affect financial statements, enhancing your understanding of accounting processes.
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